ERISA

• Most workplace pensions are covered by ERISA, the Employee Retirement Income Security Act of 1974. The act created the Pension Benefit Guaranty Corporation, which insures the retirement benefits of workers in covered plans.
  
  

Pension Benefit Guaranty Corporation

• The Pension Benefit Guaranty Corporation or PBGC insures more than 44 million workers in 29,000 different pension plans. Although the PBGC was created by the government, it is not funded by taxpayers. Instead, it collects premiums from pension plans and seizes the assets of failing pensions to subsidize its operations and pay claims.
  
  

What Is Covered

• As of September 2010, PBGC covers pension benefits at your normal, expected retirement age, up to $4,500 per month, most benefits for early retirement, annuity payouts for survivors of plan participants, and disability benefits, except for disabilities occurring after the plan termination date. Exact coverage amounts are reviewed yearly.