Pension Benefit Guaranty Corporation

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Pension Benefit Guaranty Corporation (PBGC)

A federal agency that insures the vested benefits of pension plan participants (established in 1974 by the ERISA legislation).

Pension Benefit Guaranty Corporation

A non-profit corporation under the United States Department of Labor guaranteeing the pensions of some private companies. Established in 1974, it is designed to take over the pensions of participating companies should they become insolvent. It does not derive its revenues from taxation; rather, it collects premiums from participating companies as if it were an insurance policy. It was not designed to protect bankrupt companies; rather, it exists as part of a social safety net for former employees of these companies. It is headed by a Director, who is appointed by the U.S. President upon confirmation of the Senate.

Pension Benefit Guaranty Corporation

A government agency that insures certain corporate pension funds. The Corporation, established under the Employee Retirement Income Security Act, is funded by charging companies a premium based on the number of covered employees.

Pension Benefit Guaranty Corporation (PBGC).

The PBGC was created to ensure that participants in defined benefit pension plans under its jurisdiction will receive at least a basic pension if the plans are terminated because they're underfunded and so unable to meet their obligations.

The maximum benefit is adjusted each year for plans terminated in that year to reflect increases in Social Security.

Covered plans, which include those with 25 or more participants, must pay annual premiums to the PBGC to help fund this federal corporation.

The PBGC also tries to find people who participated in, and are due benefits from, plans that are no longer operating.

References in periodicals archive ?
If the Central States Pension Plan and other pension plans are allowed to fail, not only will employers no longer be able to pay promised benefits, but taxpayers would be at risk of having to pay billions when the Pension Benefit Guarantee Corporation (PBGC), the government sponsored insurance company for multiemployer pensions, has an exposure of $59 billion and is projected to become insolvent by 2025.
In addition, the Pension Benefit Guarantee Corporation (PBGC) has significantly increased its premiums and changed to new mortality tables which are less favorable to plan sponsors.
He was an advisor to the Pension Benefit Guarantee Corporation.
Achieve pension funding stabilization and avoid significant Pension Benefit Guarantee Corporation (PBGC) premium increases.
Another major goal of the bill is to shore up the health of the Pension Benefit Guarantee Corporation.
Kelly's colleague at Citigroup, Charles Millard, made similar efforts in the US -- along with consulting firm Plexus -- while leading the Pension Benefit Guarantee Corporation (PBGC) during the latter part of the Bush Administration.
The legislation would create a separate fund in the Pension Benefit Guarantee Corporation (PBGC), a government-sponsored enterprise set up in 1974 to pay for failed union pension plans.
We estimate the amount of private pensions explicitly guaranteed in 2009 by the Pension Benefit Guarantee Corporation (PBGC) based on the latest private pension data available, which are data for 2007 (Pension Benefit Guarantee Corporation 2010, pp.
They also analyze the difficulties of the Pension Benefit Guarantee Corporation (PBGC).
Most bailouts, however, occur in the relative dark, such as the 1998 rescue of giant hedge fund Long-Term Capital Management, the not infrequent bailouts of under-funded corporate pension plans by the government's Pension Benefit Guarantee Corporation, price supports for big agribusinesses facing market downturns, or the current bailout of Wall Street being engineered by Bernanke's Fed.
Missing participants: Under Employee Retirement Income Security Act of 1974 (ERISA) Section 4050, the Pension Benefit Guarantee Corporation usually assumes responsibility for benefits owned by terminated defined-benefit plans of participants who cannot be found.
Politicians and policy makers have become increasingly concerned about the effect that United Airlines' decision could have on the rest of the airline industry and on the government's under-funded Pension Benefit Guarantee Corporation which would have to cover the airline's pension payments.