Pension Benefit Guaranty Corporation Needs to Improve Premium Collections
HRD-92-103: Published: Jun 30, 1992. Publicly Released: Aug 11, 1992.
- Full Report:
Pursuant to a congressional request, GAO reviewed the Pension Benefit Guaranty Corporation's (PBGC) efforts to collect pension plan premiums.
GAO found that PBGC: (1) efforts to identify and collect delinquent premiums and underpaid premiums, interest, and penalties on premiums have been inadequate; (2) has infrequently issued and failed to follow up on past-due notices; (3) has not sent past-due notices to or collected delinquent premiums from plans with less than 50 participants; and (4) has not used civil action to collect delinquent premiums, interest, or penalties.
Recommendation for Executive Action
Status: Closed - Implemented
Comments: PBGC acknowledged problems with its automated collection system and has designed and implemented a temporary manual system. PBGC is sending Past Due Filing Notices and Statements of Account to plans with fewer than 50 participants. PBGC is also filing civil suits to collect delinquent premiums, penalties, and interest.
Recommendation: The Executive Director, PBGC, should begin sending Past Due Filing Notices and Statements of Account to plans with fewer than 50 participants. The Executive Director should also: (1) expedite completion of the general counsel study of using civil action as a collection tool; and (2) consider the deterrent effect of using such action, along with the results of the general counsel study, when deciding how PBGC will use civil action to collect.
Agency Affected: Pension Benefit Guaranty Corporation