In the U.S., the law requires employers offering pension plans for their employees to pay a small fraction of those pension contributions to the _________________________, which will pay at least some pension benefits to workers if a company goes bankrupt and cannot pay the pensions it has promised.

Question

Quizplus · Accepted Answer

The Pension Benefit Guaranty Corporation (PBGC) is the correct answer because it is a federal agency created by the Employee Retirement Income Security Act of 1974 (ERISA) to protect pension benefits in private-sector defined benefit plans. If a company cannot meet its pension obligations, the PBGC steps in to ensure that employees still receive their pensions, up to certain limits.

In the US, the Law Requires Employers Offering Pension Plans for Their