Question

The _____ guarantees payment to employees of a basic retirement benefit in the event that financial difficulties force a company to terminate or reduce employee pension benefits.

Answer 1

Pension Benefit Guaranty Corporation (PBGC). Employee Retirement Income Security Act (ERISA). The 1974 act that increased the fiduciary responsibilities of pension plan trustees, established vesting rights and portability provisions, and established the Pension Benefit Guaranty Corporation (PBGC). The agency that guarantees to pay employees a basic retirement benefit in the event that financial difficulties force a company to terminate or reduce employee pension benefits.