ERISA establishes an insurance plan to protect employees when the employer goes out of business.To provide this protection,the statute created a:

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The Pension Benefit Guaranty Corporation (PBGC) was created by ERISA to insure the retirement benefits of employees participating in private sector defined benefit pension plans. If an employer with a defined benefit plan goes out of business or cannot meet its pension obligations, the PBGC takes over the plan and pays benefits up to a certain limit. This provides a safety net for employees and ensures they receive at least some of the benefits they were promised. The other options listed are not accurate descriptions of the protection provided by ERISA.

ERISA Establishes an Insurance Plan to Protect Employees When the Employer