Which of the following statements is true about the Pension Benefit Guaranty Corporation (PBGC)?
A)It was created by the Consolidated Omnibus Budget Reconciliation Act (COBRA)of 1985.
B)It guarantees a complete pension benefit replacement.
C)It does not guarantee health care benefits.
D)It is not funded by an annual contribution per plan participant.
E)It allows payouts to be adjusted for cost-of-living changes.

Question

Quizplus · Accepted Answer

The PBGC was created by the Employee Retirement Income Security Act (ERISA) of 1974, not COBRA. It guarantees a portion of the pension benefit, not a complete replacement. It does not guarantee health care benefits. It is funded by an annual contribution per plan participant. It allows payouts to be adjusted for cost-of-living changes.

Which of the Following Statements Is True About the Pension