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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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JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
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