The Pension Benefit Guaranty Corporation (PBGC) is a U.S. government agency that protects pension benefits in private-sector defined benefit plans, ensuring retirees receive their pensions even if their employer goes bankrupt or cannot fulfill its pension obligations. By collecting insurance premiums from plan sponsors and using those funds to pay benefits and manage assets, PBGC aims to preserve pension assets and guarantee benefit payments to millions of Americans.
Pension funding refers to the method of accumulating financial resources to pay for future retirement benefits for individuals, ensuring they receive regular income after retiring from active employment. Successful pension funding relies on actuarial assessments, investment strategies, and regulatory compliance to maintain the financial sustainability of pension plans over time.