Pension Benefit Guaranty Corporation (PBGC) Legal Meaning and Definition

Here is a simplified definition of the legal term Pension Benefit Guaranty Corporation (PBGC).

Pension Benefit Guaranty Corporation (PBGC) - (noun) It's a U.S. government agency that protects the retirement incomes of workers who have benefit pensions from private-sector companies. If the company is unable to pay out the promised pensions, such as in cases of bankruptcy, the PBGC steps in to provide the promised benefits. It is a type of insurance for employees' pensions.