Word: pbgc
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...their companies' decisions to replace their pensions with insurance-company annuities, these retirees are learning that their former employers shucked all legal responsibility for continued payments to them in the process. Worse, the same switch cut them off from the government's Pension Benefit Guaranty Corporation (PBGC). Instead, annuity holders are covered by a hodgepodge of state insurance regulations that in some cases offer no protection at all for the $50 billion worth of insurance annuities that cover retirees and workers...
Since 1974 the Department of Labor has exercised oversight authority, seeking to ensure that plans are operated in the best interests of their participants. When companies are unable to pay pension benefits, the PBGC steps in to meet the obligations, guaranteeing payment of up to $2,250 per month to eligible retirees...
Congress can also consider that if Chrysler fails, the federal Pension Benefit Guaranty Corp. may have to assume responsibility for about $800 million in insured but unfunded pension obligations to the auto company's employees. "That would be catastrophic," warned one agency official. To pay the bill, the PBGC would have to get special congressional approval to raise the fees that it charges for insuring other companies' pension funds...
...Guaranty Corp. (officers: the Secretaries of Labor, Treasury and Commerce) to insure pensions in much the same way that the Federal Deposit Insurance Corp. protects depositors in banks that go bust. With only a few exceptions, an employer who sets up a pension plan must buy insurance from the PBGC. If a company or its pension fund goes broke, the federal agency can pay up to $750 a month to the workers who were "vested"-that is, had gained rights that could not be forfeited even if they left the company. Generally, the bill requires that employees be fully vested...