What is one of the main functions of the Pension Benefit Guarantee Corporation?

The Pension Benefit Guaranty Corporation (PBGC) plays a crucial role in protecting the retirement incomes of millions of American workers by providing insurance for private sector defined benefit pension plans. When a pension plan fails, the PBGC steps in to ensure that participants still receive their pensions up to a certain limit, which is essential for safeguarding the financial interests of retirees.

The purpose of this insurance is to provide a safety net for employees who have contributed to their pension plans, thus ensuring they have some level of income in retirement, even if their employer becomes unable to meet its pension obligations. This coverage is crucial for promoting confidence in the pension system and encouraging employees to participate.

The other options do not accurately reflect the main mission of the PBGC. For instance, maximizing investment returns is more in line with investment management firms rather than an insurance corporation. Administering the Medicare program is unrelated, as that responsibility falls under the Centers for Medicare & Medicaid Services. Additionally, ensuring immediate payouts to retirees is not a primary function of the PBGC since it provides insurance for future payments rather than immediate distributions.