The Pension Benefit Guaranty Corporation was created by ERISA to insure promised pension benefits against unexpected loss.

Question

Quizplus · Accepted Answer

The statement is true. The Pension Benefit Guaranty Corporation (PBGC) was established by the Employee Retirement Income Security Act (ERISA) in 1974 to protect the pension benefits of workers and retirees in the private sector in case their defined benefit pension plans are terminated without enough money to pay promised benefits. PBGC is not a government-funded agency; it is financed by insurance premiums paid by plan sponsors, asset recoveries from terminated plans, and investment income.

The Pension Benefit Guaranty Corporation Was Created by ERISA to Insure