When a company goes bankrupt and takes its pension down with it, retirees do not necessarily lose everything, because a little-known federal agency steps in and keeps the checks coming. What it covers, what it caps, and which retirees get…
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Traditional pensions from private employers have a federal backstop that kicks in when the sponsoring company fails. If the employer goes bankrupt and the plan fails, the Pension Benefit Guaranty Corporation (PBGC) takes over the plan and keeps sending the monthly checks.
Congress created the agency through the Employee Retirement Income Security Act of 1974…