GAO discussed the Pension Benefit Guaranty Corporation's (PBGC) financial condition. GAO noted that: (1) the PBGC deficit, which has grown significantly in recent years, totalled $2.3 billion at the end of fiscal year 1991; (2) large unfunded liabilities in the plans it currently insures present the greatest threat to PBGC, which estimates that its deficit could grow to $17.9 billion by 2001; (3) the present PBGC cash flow is sufficient to meet its current benefit obligations; (4) legislative proposals for improving funding of underfunded plans could significantly reduce the PBGC deficit over the long run; (5) underfunded plans present a risk to PBGC and to plan participants, since PBGC does not insure all of the benefits provided by some pension plans; and (6) PBGC has also experienced some significant internal operations problems, such as unreliable financial statements.