Which types of plans must purchase insurance from the Pension Benefit Guaranty Corporation (PBGC)?

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Employers with defined benefit plans must purchase insurance from the Pension Benefit Guarantee Corporation (PBGC) to cover potential losses of benefits if the plan is terminated without sufficient funds to pay all promised benefits. The PBGC was established by ERISA and is similar to the FDIC in that it acts to insure pensions to a certain guaranteed limit in the event that the plan and the employer are unable to pay all promised benefits. The pensions of retired workers generally are insured for the full amount owed, while the pensions of vested but still employed workers are covered only to the extent that their vested interests have accrued at the time the plan terminates, but only to a level guaranteed by the PBGC. Accordingly, workers can lose promised and accrued benefits.

Which Types of Plans Must Purchase Insurance from the Pension