Several Reforms Might Improve Plan Funding and Reduce the Risks to PBGC's Long-term Viability

• Strengthen funding rules applicable to poorly funded plans

• Consider additional tax deductible funding flexibility

• Limit lump sums in underfunded plans

• Modify program guarantees (e.g., phase-in rules)

• Raise and modify pension premiums (e.g., nature of risk related premiums)

• Eliminate floor/offset arrangements with significant investment concentrations in employer securities

• Increase transparency of current plan funding information

• Modify bankruptcy laws

• Address issues surrounding certain hybrid plans (e.g., cash balance plans)

• Consider whether to address industrial restructuring costs/losses differently than normal PBGC losses