Pension Benefit Guaranty Corporation

Retirement

The Pension Benefit Guaranty Corporation (PBGC) is a US government corporation that insures private-sector defined benefit pension plans. When a pension plan fails, PBGC takes over and pays benefits up to maximum guaranteed amounts ($7,107.95/month for a 65-year-old in 2026 — adjusted annually). Multi-employer plans (typically union) have a separate, lower-guaranteed cap. PBGC is funded by insurance premiums from covered plans, not taxpayer dollars. PBGC doesn't cover health benefits, vacation pay, or supplemental retirement benefits. Government and church plans aren't covered. PBGC's existence makes private pensions safer than they appear in isolation.