Even though the company is no longer able to pay the retirees, they are still protected because The Pension Benefit Guarantee Corporation will pay a basic benefit.
The Pension Benefit Guarantee Corporation:
- Was created to protect the pensions of millions of Americans
- Provides a basic benefit to pensioners who need pension payments when their companies no longer pay them
The basic benefit is a percentage of the benefits the retirees receive from their normal plan so it is not much. Retirees will often have to supplement this option.
In conclusion, The Pension Benefit Guarantee Corporation will pay out something to the retirees.
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