H.R. 9701, a Bill To Require That Federal Pension Plans File Annual Financial and Actuarial Reports

The purpose of H.R. 9701 is to achieve full, uniform disclosure of the financial condition of federal pension plans. At present, there is no overall policy for guidance in establishing, financing, or amending federal retirement systems. The systems' funding requirements vary and in most cases are less stringent than those imposed on private pension plans. Some systems provide for fully funding benefits as they accrue; some provide for partial funding; and some are completely unfunded. Congress does not presently receive realistic and consistent information on the cost of federal retirement programs, impairing its ability to make sound fiscal and legislative decisions. The costs and liabilities of federal retirement programs are much greater than are recognized by current costing and funding procedures. H.R. 9701 would: require that each federal pension plan furnish an annual report of its financial condition to Congress and the Comptroller General, direct the Comptroller General to prescribe the content of the reports and to review each plan's statement, and establish a Board of Government Actuaries to prescribe actuarial reporting standards. Changes need to be made to the other duties assigned to the Comptroller General. Costs for implementation of the bill include $1 million annually for the necessary audit work, $1 million for actuarial work, and $.5 million for prescribing reporting standards and formats.