Benefit Guarantee Insurance: Assuring Employee Pension Rights
Benefit guarantee insurance, a crucial safety net in the realm of employee benefits, steps in to protect pension rights when employers encounter financial distress. A prominent example is the Pension Benefit Guaranty Corporation (PBGC) in the United States, a federal agency that safeguards private-sector pension plans. The PBGC’s relevance lies in its role as a backstop, providing a financial cushion for workers who might otherwise lose their hard-earned pension benefits due to employer insolvency.