The federal government insurance agency, called the Pension Benefit Guarantee Corporation (PBGC), insures the funds of defined benefit plans. The PBGC does not guarantee that the pension is as large as if the company remains solvent. If the company you worked for with a defined benefit plan goes bankrupt, the PBGC takes over benefit payments — but only to a certain limit ($36,000 a year in 1999). (more…)

There is a huge debate if management of pension plan should be separated or integrated with the organization that sponsoring them. In some of popular pension funds, they were run separately from sponsoring organization. In other some pension funds in the market, it is still managed as if a part of the sponsor. (more…)