Yes, which means union defined benefit plans are covered, which includes "the retirement incomes of more than 44 million American workers".
Add to that the public-sector pensions (which have HUGE unfunded liabilities), for which the government is DIRECTLY responsible, and you might understand why the markets cannot be allowed to crash, or find a new, lower equilibrium.
Nice try, gente.
Gente's point was that the PBGC has nothing to do with state pensions. and you can't say 'government' generically. I don't think it is a given that Washington must step to pay pensions if Illinois goes broke. I suspect that if the democrats control congress when that happens...the feds will step in to some degree. If the repubs are in charge when that happens...less likely for the feds to step in.
And can I just say here that anyone who says anything like 'the markets cannot be allowed to crash' is a loudmouth.
Sure, the gov't can encourage people to buy stocks and bonds, but if Mr Market wants to crash, Mr Market will crash. As it has, twice in the last 15 years. Low interest rates helped get people back in, but there is no 'allow' here.