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Simple English definitions for legal terms

Pension Benefit Guaranty Corporation (PBGC)

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A quick definition of Pension Benefit Guaranty Corporation (PBGC):

The Pension Benefit Guaranty Corporation (PBGC) is a government program that helps people who worked for companies that had pension plans but can no longer pay their pensions. The PBGC was created in 1974 to make sure that people who worked hard and saved for retirement would still get their pensions even if their company went bankrupt. The PBGC is run by a director who is chosen by the President and confirmed by the Senate. The PBGC has two programs: one for companies that had one pension plan and one for companies that had a pension plan with a union. The PBGC is paid for by the companies that had pension plans. The PBGC does not cover 401(k) plans, and the amount of money people get from the PBGC depends on their age and other factors. Unfortunately, the PBGC has had money problems in recent years because fewer companies are offering pension plans.

A more thorough explanation:

The Pension Benefit Guaranty Corporation (PBGC) is a government organization that helps pay retirement benefits to people whose private-sector pension plans have ended. This happens when the plans can't meet their financial obligations. The PBGC was created in 1974 to regulate private pension plans. It is led by a director appointed by the President and confirmed by the Senate, and it is governed by a Board of Directors.

The PBGC operates two pension insurance programs: single-employer and multi-employer. The single-employer program covers pension plans sponsored by one company or a group of companies under common ownership. The multi-employer program covers pension plans created through an agreement between employers and a union.

The PBGC does not cover defined-contribution plans, such as 401(k)s. It also caps the monthly annuity amount depending on the age of the retiree. For example, a retiree aged 65 with a deceased spouse who qualifies for a monthly annuity from PBGC will receive a maximum monthly annuity of $5,812.50.

The PBGC is funded by insurance premiums paid by employers that sponsor covered plans. However, the PBGC has struggled financially in recent years, running a deficit of $56.5 billion in 2019. This is due in part to employers shifting away from defined-benefit plans in favor of employee- and employer-funded defined-contribution plans.

Example: John worked for a company that had a pension plan. When he retired, he expected to receive a monthly pension payment. However, the company went bankrupt and could no longer pay the pension benefits. Luckily, the PBGC stepped in and paid John's pension benefits instead.

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19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
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