When the Pension Benefit Guaranty Corporation takes over an underfunded pension plan, if there aren't enough assets in the pension plan to pay the retirement obligations, then taxpayers will make up the difference.

Question

Quizplus · Accepted Answer

The Pension Benefit Guaranty Corporation (PBGC) is funded by insurance premiums paid by the pension plans it protects, not by taxpayer dollars. If a plan is underfunded, the PBGC will use its own funds to ensure retirees receive their benefits up to the legal limits.

When the Pension Benefit Guaranty Corporation Takes Over an Underfunded