PBGC

The Pension Benefit Guaranty Corporation (PBGC) is a U.S. government agency that protects workers’ retirement benefits when private-sector companies with defined benefit pension plans face financial difficulties or go bankrupt. If a company’s pension fund can't pay retirees' promised benefits, PBGC steps in to ensure those retirees continue to receive pension payments, up to certain limits. It acts as a safety net, maintaining confidence in employer-sponsored pensions, though it may not cover the full promised amount if benefits are very high.