**Most private-sector defined benefit pensions in the U.S. are federally insured, subject to limits.** The Pension Benefit Guaranty Corporation (PBGC) guarantees eligible benefits in covered plans. That protection does not guarantee every participant’s full promised pension. Government plans are outside PBGC coverage; church plans generally are excluded, as are certain small professional-service plans. [PBGC coverage rules](https://www.pbgc.gov/employers-practitioners/legal-resources/insurance-coverage)

For a covered **single-employer plan**, PBGC generally guarantees vested basic benefits, including normal retirement pensions, most early retirement benefits, and survivor annuities. “Vested” means you have earned a right to the benefit. Guarantees have a maximum dollar amount and other restrictions, including limits on recent benefit increases. For example, PBGC’s **2026 maximum at age 65 is $7,789.77 per month for a straight-life annuity**. The applicable limit depends on the relevant termination or bankruptcy year, your age, and the payment form; other restrictions can reduce the guaranteed amount further. [PBGC benefit rules](https://www.pbgc.gov/workers-retirees/learn/understanding-your-pension-pbgc-coverage), [maximum guarantee tables](https://www.pbgc.gov/workers-retirees/learn/guaranteed-benefits/monthly-maximum)

**A sponsor’s bankruptcy does not automatically terminate its pension plan.** For ERISA-covered plans, pension assets are kept separately from the employer’s business assets, generally in a trust or insurance contract. Those assets remain available to support pension benefits. [Department of Labor retirement FAQs](https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/faqs/retirement-plans-and-erisa?trk=article-ssr-frontend-pulse_little-text-block)

A single-employer plan can have several outcomes:

- **It continues through reorganization.** The employer remains responsible for the plan, although future benefit accruals may be frozen.
- **It ends with enough money to pay all benefits.** A standard termination generally provides benefits through purchased insurance annuities or permitted lump-sum payments.
- **An underfunded plan ends through a distress or PBGC-initiated termination.** PBGC generally becomes trustee and pays benefits under its guarantee rules. Some participants receive reduced benefits. Plan assets and recoveries can sometimes support payments above the guaranteed amount.

These outcomes follow specific termination requirements. [PBGC termination fact sheet](https://www.pbgc.gov/about/factsheets/page/termination), [Department of Labor retirement guide](https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/publications/what-you-should-know-about-your-retirement-plan)

If the plan terminates while the sponsor is still in bankruptcy, **the bankruptcy filing date generally determines the benefits PBGC guarantees and the applicable limits**. Benefits earned after that filing may be payable from available plan assets but are generally outside the guarantee. [PBGC bankruptcy-date rules](https://www.pbgc.gov/workers-retirees/learn/understanding-your-pension-pbgc-coverage/bankruptcy-date)

**Multiemployer plans have separate rules.** These typically cover workers at several unrelated employers under collective bargaining agreements. One employer’s bankruptcy does not automatically end the shared plan. PBGC provides financial assistance when the plan becomes insolvent, and the plan continues paying benefits. The guarantee is substantially lower: for someone with exactly 30 years of credited service, the maximum is **$12,870 annually**, and the actual guarantee may be less. [PBGC multiemployer insurance facts](https://www.pbgc.gov/workers-retirees/learn/guaranteed-benefits/multiemployer-plans-facts)

To find out how a particular pension is protected:

1. **Ask the plan administrator** for the Summary Plan Description, your benefit statement, and the latest annual funding notice. Confirm PBGC coverage, whether the plan is single-employer or multiemployer, and your vested benefit. The funding notice describes funding status and insurance protection. [DOL plan information](https://www.dol.gov/general/topic/retirement/planinformation), [funding-notice guidance](https://www.dol.gov/agencies/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/2025-02)
2. **Check [PBGC’s plan search](https://www.pbgc.gov/search-plan)** and the guarantee rules linked above.
3. **Contact a Department of Labor benefits adviser** through [Ask EBSA](https://www.askebsa.dol.gov/WebIntake/Home.aspx?l=en) or **1-866-444-3272** for help obtaining documents or understanding your rights.
4. **For a plan outside PBGC coverage**, ask its administrator which laws, funding arrangements, or insurance protections apply.