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Pension Benefit Guaranty Corporation: A More Strategic Approach Could Improve Human Capital Management

GAO-08-624 Published: Jun 12, 2008. Publicly Released: Jul 14, 2008.
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Highlights

The Pension Benefit Guaranty Corporation (PBGC) employs over 800 federal employees and uses some 1,500 private sector employees to insure the pensions of millions of private sector workers and retirees in certain employer-sponsored pension plans. In recent years, PBGC's projected financial liabilities and workloads have increased greatly due to a large number of pension plan terminations. Given this, it is important that PBGC remain well positioned to fulfill its promise to those retirees who depend on it. GAO was asked to report on (1) PBGC's recent experience in hiring and retaining key staff and how it compares to other federal agencies and (2) the actions PBGC has taken to strategically hire and retain key staff and what additional steps, if any, can be taken. To do this, we analyzed PBGC's workforce by using the Office of Personnel Management's (OPM) Central Personnel Data File to identify data and compared those data to data from other federal agencies. We also interviewed officials from selected agencies, including PBGC, OPM, and the Department of Labor.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Pension Benefit Guaranty Corporation To improve PBGC's human capital management structure, PBGC's Director should instruct PBGC's Chief Management Officer to integrate formal workforce and succession planning components as part of the corporation's efforts in developing a formal strategic planning approach to managing its workforce.
Closed – Implemented
PBGC provided the plan to OPM in 2008. In May 2012, PBGC reported that it has been working with the Office of Personnel Management, developing and implementing PBGC's Human Capital Strategic Plan. The plan integrates workforce and succession planning components to help manage PBGC's workforce.
Pension Benefit Guaranty Corporation To improve PBGC's human capital management structure, PBGC's Director should instruct PBGC's Chief Management Officer to systematically collect and analyze workforce data and integrate the results of such analyses into its workforce planning efforts. Such an approach could include updating PBGC's 2002 Workforce Planning Report, analyzing the reason for and the associated costs of its attrition, and identifying the types of skills and competencies critical to PBGC's mission.
Closed – Implemented
According to PBGC, the agency is working with the Office of Personnel Management to implement PBGC's Human Capital Strategic Plan - 2010-2014. PBGC provided the plan to OPM in 2008. The plan identifies the skills and competencies critical to PBGC's mission.
Pension Benefit Guaranty Corporation To improve PBGC's human capital management structure, PBGC's Director should instruct PBGC's Chief Management Officer to fully explore with the Office of Personnel Management and Office of Management and Budget all compensation options currently available to determine and document what options are appropriate and applicable within its statutory authority. Subsequently, the corporation should make use of all applicable and appropriate options, and continuously track, document, and monitor the use of such options. Once such steps are taken, PBGC should determine the extent to which its ability to hire and retain is hindered by its compensation structure. If such efforts conclude that PBGC is in fact hindered, the corporation's board of directors and Director should work to formulate recommendations to Congress for modifying its structure.
Closed – Implemented
PBGC is working with the Office of Personnel Management to implement PBGC's Human Capital Strategic Plan (PBGC provided the plan to OPM in 2008), which notes GAO's recommendation to explore and make use of compensation options. According to PBGC, they are exploring compensation options that would be appropriate and applicable within its statutory authority.

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Topics

Comparative analysisData collectionData integrityEmployee benefit plansEmployee incentivesEmployee retentionEmployeesFederal agenciesFederal employeesFinancial analysisHiring policiesHuman capital managementHuman capital planningHuman capital policiesPensionsPrivate sectorRetirementSkilled laborStaff utilizationStrategic planning