Question

The main purpose of the Pension Benefit Guaranty Corporation is to

A) require minimum funding of pensions.
B) require plan administrators to publish a comprehensive description and summary of their plans.
C) administer terminated plans and to impose liens on the employer's assets for certain unfunded pension liabilities.
D) force an voluntary termination of a pension plan whenever the risks related to nonpayment of the pension obligation seem too little.

Answer 1

The PBGC's main role is to oversee terminated pension plans, ensuring workers receive their benefits even if a company goes bankrupt, and they penalize firms for underfunding pension plans.

Step-by-step explanation:

The main purpose of the Pension Benefit Guaranty Corporation (PBGC) is to administer terminated plans and to impose liens on the employer's assets for certain unfunded pension liabilities. Therefore, the correct answer to the student's question is C) administer terminated plans and to impose liens on the employer's assets for certain unfunded pension liabilities.

The PBGC is a federal agency that ensures that pension benefits are paid out to workers if a company goes bankrupt and is unable to fulfill its pension commitments. Additionally, the PBGC penalizes firms for underfunding their pension plans and provides employees with more information about their pension accounts, helping to maintain the stability and integrity of retirement plans for American workers.

The main purpose of the Pension Benefit Guaranty Corporation (PBGC) is to administer terminated pension plans and impose liens on the employer's assets for certain unfunded pension liabilities. The PBGC steps in to protect workers' pension benefits in the event that a company goes bankrupt and cannot pay the promised pensions.