Pension Benefit Guarantycorporation (pbgc)
Independent federal government organization authorized by the employee retirement income security act of 1974 (erisa) to administer the pension plan termination insurance program. Its function is to ensure that vested benefits of employees, whose pension plan is being terminated, will be paid as they come due. The PBGC board of directors consists of the U.S. Secretaries of Labor, Commerce, and Treasury. Only qualified defined benefit plans are guaranteed; profit sharing plans, stock bonus plans, and money purchase plans are not. Plan termination insurance covers both voluntary termination and terminations ordered by the PBGC. Employers pay an annual premium rate per employee in their pension plans to the PBGC to finance the plan termination insurance program.
Popular Insurance Terms
Type of policy with premiums that are fully paid up within a stated period. For example, a 20-payment life insurance policy has 20 annual premium payments, with no further premiums to be ...
Defined contribution pension plan in which employer contributions are set under a collective bargaining agreement. It usually covers the employees of a number of firms and is administered ...
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Decision in the absence of a plaintiff or defendant at the specified court time. ...
Employees participating in and covered under an employee benefit insurance plan. ...
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