Premium Accounting System:

Pension Benefit Guaranty Corporation System Must Be an Ongoing Priority

IMTEC-92-74: Published: Aug 11, 1992. Publicly Released: Aug 11, 1992.


Joel C. Willemssen
(202) 512-6253


Office of Public Affairs
(202) 512-4800

Pursuant to a congressional request, GAO provided information on the Pension Benefit Guaranty Corporation's (PBGC) modifications to the automated premium accounting system and procurement of a replacement system.

GAO found that: (1) the PBGC premium computerized accounting system has undergone a two-phase modification and restoration, and the first phase has restored partial system function, but the second phase remains incomplete; (2) lack of sufficient oversight, management, technical expertise, and institutional knowledge has resulted in delays; (3) the system posts total payments, makes refunds, and issues past-due filing notices and statements of account prior to 1987; (4) the system lacks adequate documentation, uses outdated technology, incorporates design and construction inflexibility, and cannot identify variable rates payment or generate statements of accounts for after 1987; (5) modification estimates for the system involve adding or altering 23,000 lines of system code, requiring six staff members; and (6) new system requirements must include flexible and accurate recording of premium operations, correspondence generation, and the ability to respond to legislative changes.

Status Legend:

More Info
  • Review Pending-GAO has not yet assessed implementation status.
  • Open-Actions to satisfy the intent of the recommendation have not been taken or are being planned, or actions that partially satisfy the intent of the recommendation have been taken.
  • Closed-implemented-Actions that satisfy the intent of the recommendation have been taken.
  • Closed-not implemented-While the intent of the recommendation has not been satisfied, time or circumstances have rendered the recommendation invalid.
    • Review Pending
    • Open
    • Closed - implemented
    • Closed - not implemented

    Recommendation for Executive Action

    Recommendation: To ensure the long-term success of the premium accounting system, the Executive Director, PBGC, should establish a permanent management structure, with senior-level technical staff responsible for the day-to-day operation and maintenance of the system.

    Agency Affected: Pension Benefit Guaranty Corporation

    Status: Closed - Implemented

    Comments: PBGC has dedicated a senior-level manager to develop a new premium accounting system and has hired a contractor, Wang Federal, to perform the day-to-day operations and maintenance of the system. PBGC implemented a new Premium Accounting System (PAS) in about October 1995. The Inspector General is reviewing PAS internal controls.

    Jul 29, 2014

    Jul 28, 2014

    Jul 7, 2014

    Jun 16, 2014

    May 27, 2014

    Apr 21, 2014

    Mar 5, 2014

    Feb 26, 2014

    Dec 27, 2013

    Looking for more? Browse all our products here