Pension Benefit Guaranty Corporation, sometimes called the PBGC, is a United States government agency that protects certain pension benefits. A pension is a form of income that workers or their spouses receive after the workers retire, become disabled, or die. The PBGC protects people who receive income through private pensions with defined benefits—that is, employer-funded plans that provide a specified monthly income after retirement. The agency ensures that people receive their pension benefits, even if the pension plan runs out of money. The PBGC is funded largely by insurance premiums paid by companies that operate defined-benefit pensions.
The PBGC was established by the Employee Retirement Income Security Act of 1974. The agency is headed by an executive director who reports to a board of directors. The board of directors consists of the secretaries of labor, commerce, and the treasury, with the secretary of labor as the chairman. The PBGC’s headquarters are in Washington, D.C.
See also Pension
