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Pension Benefit Guaranty Corporation: Need for Improved Oversight Persists

GAO-08-1062 Published: Sep 10, 2008. Publicly Released: Sep 10, 2008.
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Highlights

The Pension Benefit Guaranty Corporation (PBGC) insures the pension benefits of 44 million private sector workers and retirees in over 30,000 employer-sponsored pension plans. In July 2007, GAO reported that PBGC's governance structure needed improvements, and asked Congress to consider expanding the board of directors to include additional members. GAO also recommended that the board develop policies and mechanisms consistent with corporate governance practices, and develop formal guidelines to clarify the roles and responsibilities of the board chair, members, their representatives, and the director. On the basis of that work, this report addresses (1) the steps PBGC has taken to improve policy direction and oversight and (2) how Congress applies oversight to PBGC and what other oversight mechanisms exist for government corporations. GAO reviewed PBGC's new corporate bylaws and the structure and reporting requirements of selected government corporations. GAO also interviewed PBGC and Department of Labor officials.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Pension Benefit Guaranty Corporation To ensure that recently identified management and financial challenges facing PBGC are shared with those newly appointed, PBGC should provide Office of Inspector General and GAO reports on the corporation's financial and management challenges to the newly appointed board members, board representatives, and director so that they can take appropriate action as needed.
Closed – Implemented
PBGC provided relevant OIG and GAO reports to presidential transition team members as well as the new board members and their representatives. When the PBGC Director was confirmed, these materials were provided to the new Director in August 2010.

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Topics

Advisory committeesCongressional oversightFederal advisory bodiesFederal corporationsFederal fundsFinancial managementFunds managementInvestigations into federal agenciesPension claimsPensionsProgram evaluationProgram managementReporting requirementsRetirementRetirement incomeStrategic planningPolicies and procedures