Most private-sector defined benefit (DB) pensions in the U.S. are insured by the federal Pension Benefit Guaranty Corporation (PBGC). Coverage has legal limits, so some participants may receive less than their full promised pension. Government plans, many church plans, and certain small professional-service employer plans are outside PBGC coverage. [PBGC coverage rules](https://www.pbgc.gov/employers-practitioners/legal-resources/insurance-coverage).

For covered single-employer plans, PBGC generally guarantees earned, vested basic pension benefits. These include normal retirement benefits, most early retirement benefits, and survivor annuities. The limits depend on the applicable year, the participant’s age, and the form of payment. Recent benefit increases and some supplemental benefits may not be fully covered, even when the total pension falls below the maximum dollar limit. [Guaranteed benefits](https://www.pbgc.gov/workers-retirees/learn/guaranteed-benefits).

A sponsor company’s bankruptcy does not automatically end its pension plan or transfer it to PBGC. Pension assets are generally held separately from company assets and protected from the company’s creditors. Any existing funding shortfall remains, however. [IRS explanation of employer bankruptcy](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-bankruptcy-of-employer).

A single-employer plan has three main possible outcomes:

- The company reorganizes and keeps the plan.
- The plan ends with enough funding to pay all promised benefits. In a standard termination, benefits are generally paid through purchased insurance annuities or permitted lump-sum payments.
- The underfunded plan ends through a distress or PBGC-initiated termination. PBGC generally takes over and pays benefits up to statutory limits. Some participants receive their full pension; others receive less. [PBGC termination fact sheet](https://www.pbgc.gov/about/factsheets/page/termination).

If the plan terminates while the sponsor remains in bankruptcy, the bankruptcy filing date generally determines which benefits PBGC guarantees and which guarantee limits apply. Benefits earned after that date may be paid from available plan assets, though they are not necessarily insured. [PBGC bankruptcy-date rules](https://www.pbgc.gov/workers-retirees/learn/understanding-your-pension-pbgc-coverage/bankruptcy-date).

Union multiemployer plans have a separate insurance system. One participating employer’s bankruptcy does not, by itself, make the entire plan insolvent. If the plan cannot pay guaranteed benefits, PBGC provides financial assistance to the plan rather than taking it over. Multiemployer guarantees are generally substantially lower than single-employer guarantees and depend on benefit rates and credited service. [Multiemployer protection](https://www.pbgc.gov/workers-retirees/learn/guaranteed-benefits/multiemployer-plans-facts).

To check the protection for your pension:

1. Ask the plan administrator for the Summary Plan Description, latest annual funding notice, and your benefit statement. Confirm whether PBGC covers the plan, whether it is single-employer or multiemployer, and how much you have earned and vested. The funding notice explains the plan’s financial condition and insurance protections. [Department of Labor guide](https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/publications/what-you-should-know-about-your-retirement-plan).
2. Check PBGC’s [plan search and coverage resources](https://www.pbgc.gov/workers-retirees/learn/pension-insurance-coverage). For a single-employer plan, also check its [maximum guarantee tables](https://www.pbgc.gov/workers-retirees/learn/guaranteed-benefits/monthly-maximum) and ask which year’s table applies.
3. Contact the Department of Labor’s Employee Benefits Security Administration (EBSA) for help obtaining documents or understanding your rights. Call 1-866-444-3272 or use [Ask EBSA](https://www.askebsa.dol.gov/). If PBGC does not cover your plan, ask the administrator which laws and protections apply.