Pension Benefit Guaranty Corporation (PBGC)

Definition from Nolo’s Plain-English Law Dictionary

A federal insurance fund that pays pension benefits to retirees whose pension plans have ended, generally because the plans cannot meet their financial obligations. The PBGC is funded by insurance premiums paid by employers that sponsor covered plans. The PBGC covers only defined benefit plans and only up to a maximum monthly amount.

Definition provided by Nolo’s Plain-English Law Dictionary.