Accredited Wealth Management Advisor Practice Exam

The Pension Benefit Guaranty Corporation (PBGC) primarily exists to ensure the security of pension plans, particularly defined benefit plans. This means that PBGC steps in to protect the interests of plan participants in the event that a pension plan is terminated without having sufficient funds to pay the promised benefits. When such a situation occurs, PBGC will pay retirement benefits up to certain legal limits, thereby helping to provide financial security for retirees who depend on their pension plans for income.

Understanding the role of PBGC highlights the importance of pension security in retirement planning. Unlike other financial instruments or entities such as those involved in the issuance of securities or the regulation of mutual funds, the PBGC's sole focus is on pension plans, making its mission crucial for safeguarding the retirement income of millions of Americans.