TAX 9873 Lecture Notes - Lecture 19: Pension Benefit Guaranty Corporation, Government Operations, Employee Retirement Income Security Act
Document Summary
Up to a certain amount premiums are set by congress. Pension benefit guaranty corporation (pbgc) protects the retirement incomes of american workers. It was created by erisa in 1974 and governed by department of labor. Pbgc acts like a non-profit government insurance agency. It collects insurance premiums from employers that sponsor pension plans. Pbgc is not funded by general tax revenues and it has three main sources of income: Pay benefits to about 1. 5 million people. 4,700 single employer and multiemployer pension plans cannot pay promised benefits. Pbgc paid out about 5. 7 billion in retiree benefits. The plan must have enough money to pay all benefits voluntarily termination by employer. Voluntarily distress termination the company is in severe financial distress and the plan does not have enough money to pay all benefits. A plan is underfunded and cannot pay current benefits the termination is by pbgc. For standard termination, plans must provide pbgc with the following information regarding mission participants.
