The Pension Benefit Guaranty Corporation (PBGC) is a federal insurance fund that is tasked with funding certain pension plans after they have run out. The PBGC is handled by the Department of Labor and provides a crucial source of income for retirees who have had their pension funds terminated.
Although it is a federal program, the Pension Benefit Guaranty Corporation is not funded by taxes but, rather, by premiums paid by employers. The PBGC, moreover, is only obligated to pay a certain amount per month, dictated by the specific plan an employer purchases.
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