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Does the PBGC guard a 401k against loss? https://www.pbgc.gov/ https://www.pbgc.gov/ No didn't think so...
by StillBored 6y ago
Does the PBGC guard a 401k against loss?
https://www.pbgc.gov/ https://www.pbgc.gov/
No didn't think so...
- chrisseaton 6y agoYes they only cover defined-benefit pensions. They say that they cover ‘pension benefits in private-sector defined-benefit plans’. A 401(k) is a defined-contribution pension so it’s out of their scope. But so what they don’t cover it? Why does that make it less of a pension? Government pensions also aren’t covered by it. Are they not pensions as well?
- wutbrodo 6y agoWhat makes you think the definition of pension is "protected by the PGBC"? The PGBC's website itself specifies: > PBGC is a federal agency created by the Employee Retirement Income Security Act of 1974 (ERISA) to protect pension benefits *in private-sector defined-benefit plans* Which means by implication that there are pensions in non-defined-benefit plans (ie defined-contribution, like 401ks). Also note that this quote indicates the PGBC doesn't protect public-sector pension plans, which means your logic leads to the ludicrous conclusion that public-sector pensions are somehow not pensions. This level of confidence combined with this level of ignorance is not a good look.
- StillBored 6y ago? Whats the difference between a government backed pension guarantee and a government pension? I think your misunderstanding the purpose of the PGBC, particularly if you consider the state of things when it was founded.