Pension Benefit Guaranty Corporation. A federal corporation established under ERISA which insures the vested benefits of pension plan participants. PBGC was created in 1974, and is not funded by general tax revenues, but rather through other sources including insurance premiums and investments. The corporation was further modified by the Pension Protection Act of 2006, which among other things changed the way premiums were calculated. PBGC also sets a maximum guaranteed benefit which changes yearly; as of 2009, the maximum benefit they will pay out for someone who retires at age 65 is $4500 a month. This value is altered depending upon age at retirement, and other factors.