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pension benefit guaranty corporation

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Financial Dictionary

Pension Benefit Guaranty Corporation - PBGC

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

Investopedia Commentary

This federal corporation was established to insure that participants of defined-benefit plans 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).

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See also: 401(k) Plan, Defined-Benefit Plan, Department of Labor - DOL, Employee Benefits Security Administration - EBSA, Employee Retirement Income Security Act - ERISA, Fiduciary, Individual Retirement Account - IRA, Pension Plan, Pension Shortfall

Also spelled: Pension Benefit Guarantee CorporationPBGC

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Financial Dictionary

Pension Benefit Guaranty Corporation

A government agency that insures certain corporate pension funds. The Corporation, established under the Employee Retirement Income Security Act, is funded by charging companies a premium based on the number of covered employees.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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