Save time with our cheat sheets, fact sheets, checklists & books!

February 16, 2009

Pension Benefit Guaranty Corporation (PBGC)

Print

Definition

The Pension Benefit Guaranty Corporation (PBGC) is a government organization charged with the responsibility of protecting the retirement incomes of participants in private-sector defined benefit pension plans.

PBGC was created by the Employee Retirement Income Security Act of 1974 to encourage the continuation and maintenance of  private-sector defined benefit pension plans, provide timely and uninterrupted payment of pension benefits, and keep pension insurance premiums at a minimum.

Referring Cite

http://www.pbgc.gov

Additional Helpful Information

  • PBGC is funded from a insurance premiums that it collects from employers that sponsor insured pension plans, earnings money from investments and receives funds from pension plans it takes over.
  • PBGC is headed by a Director who reports to a Board of Directors consisting of the Secretaries of Labor, Commerce and Treasury, with the Secretary of Labor as Chairman.
More

Keep Learning

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Catch-up Contribution

Definition An additional contribution that can be made to a retirement plan by a participant who is at least age-50 by the end of the

Salary Deferral Contribution

Definition A contribution made pursuant to a participant’s election to have a portion of his/her salary/wages  contributed to his/ her employer sponsored plan  rather than

Be among the first to know when

IRA Rules
Change