Pension Benefit Guaranty Corporation Recipient Law and Legal Definition

Pension Benefit Guaranty Corporation (PBGC) recipients are those who are retired and who are receiving PBGC pension payments.

PBGC insures the pension benefits of workers in some private sector industries. When an employer faces severe financial difficulty, such as bankruptcy, and cannot continue paying pensions to their retirees, the employer may request the PBGC to take over the responsibility for paying pension benefits to their retirees.

If the PBGC becomes the trustee of the pension plan, then the PBGC will pay pension benefits under the terms of the plan, subject to legal limits, to plan participants and beneficiaries. PBGC pension benefit recipients can receive their pension benefits as a monthly or annual payment or as a one-time lump sum.