The PBGC will pay the retiree benefits from the solvency fund is true of the given scenario.
Option a
Explanation:
PBGC was established to provide basic benefits such as pension pay-out to the participant of the private sector in case the employer-defined becomes insolvent. PBGC only cover defined benefit plans; that’s is it covers plans sponsored by employers which can be calculated with a formula.
The basic benefit includes pension during retirement, most early retirement benefits, disability payments and etc. Benefits differ and with retirement, there are fewer benefits for early retirement and more when one retires after the age of 65 years.