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February 16, 2009

Pension Benefit Guaranty Corporation (PBGC)

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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.

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.

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