PBGC said pension benefits transferred from employer plans to insurers are no longer covered by the agency, marking its first opinion letter in 24 years.
The letter reasserts PBGC’s position on annuity buyouts, clarifying that once liabilities move to an insurer, participants lose the federal backstop tied to the original pension plan.
The opinion revives formal guidance from the pension guaranty agency after a long gap, giving plan sponsors, insurers and retirees a clearer signal on the limits of PBGC protection.