Pension Benefit Guaranty Corporation (PBGC)

A non-profit corporation that functions under the jurisdiction of the Department of Labor and that guarantees the payment of certain pension benefits under defined-benefit plans that have been terminated with insufficient money to pay benefits.

This federal corporation was established to ensure that defined-benefit plan participants aren’t left out in the cold if there isn’t enough money in the pension plan to meet the needs of people about to retire (i.e. in the event of a pension shortfall).

Definition courtesy of Investopedia

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