Financial Condition of the Pension Benefit Guaranty Corporation

T-HRD-92-52: Published: Aug 11, 1992. Publicly Released: Aug 11, 1992.

Additional Materials:


Office of Public Affairs
(202) 512-4800

GAO discussed the Pension Benefit Guaranty Corporation's (PBGC) financial position. GAO noted that: (1) although PBGC cash flow is currently sufficient to meet its current benefit obligations, its deficit is large and threatens to become larger because of increasing plan underfunding by companies; (2) proposed legislation would limit future liabilities, but does not address the current deficit; (3) the Administration also proposed that potential costs budgeting be changed to an accrual basis to facilitate monitoring and planning for the program; (4) proposed funding standards will lead to larger contribution requirements, which would increase the federal deficit in the short term; (5) the proposed legislation could cause inequitable treatment of participants in different types of plans; (6) proposed legislation would clarify and improve PBGC priority in bankruptcy, and provide for the continued payment of contributions while a plan sponsor is in bankruptcy, which may adversely affect other creditors; (7) increased use of PBGC authority to terminate certain plans and to increase premiums on underfunded plans would strengthen its financial position; (8) PBGC has weak internal controls and financial system deficiencies, which make its liability estimates unreliable; and (9) PBGC efforts to collect revenues owed it have been inadequate, but it has begun taking steps to improve collections.

Oct 1, 2018

Jun 4, 2018

May 22, 2018

May 21, 2018

May 17, 2018

Mar 7, 2018

Mar 5, 2018

Feb 21, 2018

Jan 8, 2018

Looking for more? Browse all our products here