The Pension Benefit Guaranty Corporation ("PBGC") is a federal corporation that was created by the enactment of the Employee Retirement Income Security Act of 1974 to protect against pension termination and provide relief for employees who have their pension terminated. Pension termination is the process by which an employer ends a pension plan. There are two ways that pension termination occurs, either through a standard termination or a distress termination. In a standard termination, the employer must show that the PBGC has enough money to satisfy the all of the benefits owed to the pension participants. The terminated plan must have an annuity set up from an insurance company or, if allowable under the pension plan, issue a lump-sum to all covered individuals. In the case of a distress pension termination, the employer in financial distress must be able to show that the company is in bankruptcy. In the event of employer insolvency, the PBGC will step in as the pension plan trustee to pay benefits using plan assets and PBGC guarantee funds if necessary. PBCG will insure or guarantees that certain pensions and retirement benefits will be paid to employees in the event that an employer files for bankruptcy, becomes insolvent or is otherwise unable to provide the promised pension benefits.