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The Pension Benefit Guaranty Corporation is a Federal corporation that protects the pensions of Americans workers. In 2005, the Pension Benefit Guaranty Corporation safeguarded the pensions of 44 million Americans covered in 31 thousand private single employer and multiemployer pension plans. If a pension plan is terminated, the Pension Benefit Guaranty Corporation provides pensions at the normal retirement age to covered workers. The Pension Benefit Guaranty Corporation is funded by insurance premiums set by Congress and paid by pension sponsors. In the early 21st century, many observers believed the Pension Benefit Guaranty Corporation was in crisis. The number of companies terminating their pension plans was on the upswing, impairing the financial position of the Pension Benefit Guaranty Corporation. Moreover, many of the pension plans covered by the Pension Benefit Guaranty Corporation were underfunded, increasing the risk of termination. Solutions to the problems facing the Pension Benefit Guaranty Corporation, including pension reform and a taxpayer bailout, were proposed. But it seemed likely that the Pension Benefit Guaranty Corporation would remain under substantial pressure for some time. |
