Question

Old Thyme Manufacturing offered employees a defined-benefit retirement plan, in which retirees received benefits calculated on the basis of their age, earnings, and years of service. But the company didn't keep up with technology, and its earnings fell. When the stock market dipped, the company found that it couldn't afford to keep up with paying for its retirement benefits. What protection will the retirees have in this situation?

Answer 1

The Pension Benefit Guaranty Corporation (PBGC)

Step-by-step explanation:

The Pension Benefit Guaranty Corporation (PBGC) gives a protection backup to members in private-sectors defined-benefit plans by protecting the members' benefits under the arrangement.

It was built to give members in plans secured by the PBGC ensured "fundamental" benefits in case their manager-supported plans become wiped out.