Pension Benefit Guaranty Corporation (PBGC)

The Pension Benefit Guaranty Corporation (PBGC) insures many private-sector defined-benefit pension plans, but it does not cover defined-contribution plans such as 401(k)s. The PBGC is largely funded by premiums paid by defined-benefit plan sponsors. The PBGC covers both single-employer plans and multiemployer plans. The Corporation’s two insurance programs are legally separate and operationally and financially independent. The Single-Employer Insurance Program is financed by insurance premiums, investment income, and assets and recoveries from failed single-employer plans. The Multiemployer Insurance Program is financed by insurance premiums and investment income.