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Highlights

The potential losses that the Pension Benefit Guaranty Corporation (PBGC), through its single-employer insurance program, might face from the termination of underfunded plans have been a longstanding concern of the Congress and GAO. In 1990, as part of our effort to call attention to high-risk areas in the federal government, we noted that weaknesses in the single-employer insurance program's financial condition threatened PBGC's longterm viability. We stated that minimum funding rules still did not ensure that plan sponsors would contribute enough for terminating plans to have sufficient assets to cover all promised benefits. In 1992, we also reported that PBGC had weaknesses in its internal controls and financial systems that placed the entire agency, and not just the single employer program, at risk. Three years later, we reported that legislation enacted in 1994 had strengthened PBGC's program weaknesses and that we believed improvements had been significant enough for us to remove the agency's high-risk designation. However, given the potential for significant changes in the program's position, we continued to monitor the situation. Early this year, PBGC's single-employer pension insurance program reported a $3.6 billion accumulated deficit for fiscal year 2002, brought on by the termination of a number of large underfunded pension plans. Given significant risk of termination of other large underfunded plans, GAO is assigning PBGC's single-employer insurance program to its "high risk" list, highlighting the need for congressional and agency action.

Below are the reports in this series:

High-Risk Series: An Update GAO-03-119, Jan 1, 2003

High-Risk Series: Strategic Human Capital Management GAO-03-120, Jan 1, 2003

High-Risk Series: Protecting Information Systems Supporting the Federal Government and the Nation's Critical Infrastructures GAO-03-121, Jan 1, 2003

High-Risk Series: Federal Real Property GAO-03-122, Jan 1, 2003

Added later:

Pension Benefit Guaranty Corporation Single-Employer Insurance Program: Long-Term Vulnerabilities Warrant 'High Risk' Designation GAO-03-1050SP, Jul 23, 2003

Performance and Accountability Series:

Major Management Challenges and Program Risks: A Governmentwide Perspective GAO-03-95, Jan 1, 2003

Major Management Challenges and Program Risks: Department of Agriculture GAO-03-96, Jan 1, 2003

Major Management Challenges and Program Risks: Department of Commerce GAO-03-97, Jan 1, 2003

Major Management Challenges and Program Risks: Department of Defense GAO-03-98, Jan 1, 2003

Major Management Challenges and Program Risks: Department of Education GAO-03-99, Jan 1, 2003

Major Management Challenges and Program Risks: Department of Energy GAO-03-100, Jan 1, 2003

Major Management Challenges and Program Risks: Department of Health and Human Services GAO-03-101, Jan 1, 2003

Major Management Challenges and Program Risks: Department of Homeland Security GAO-03-102, Jan 1, 2003

Major Management Challenges and Program Risks: Department of Housing and Urban Development GAO-03-103, Jan 1, 2003

Major Management Challenges and Program Risks: Department of the Interior GAO-03-104, Jan 1, 2003

Major Management Challenges and Program Risks: Department of Justice GAO-03-105, Jan 1, 2003

Major Management Challenges and Program Risks: Department of Labor GAO-03-106, Jan 1, 2003

Major Management Challenges and Program Risks: Department of State GAO-03-107, Jan 1, 2003

Major Management Challenges and Program Risks: Department of Transportation GAO-03-108, Jan 1, 2003

Major Management Challenges and Program Risks: Department of the Treasury GAO-03-109, Jan 1, 2003

Major Management Challenges and Program Risks: Department of Veterans Affairs GAO-03-110, Jan 1, 2003

Major Management Challenges and Program Risks: U.S. Agency for International Development GAO-03-111, Jan 1, 2003

Major Management Challenges and Program Risks: Environmental Protection Agency GAO-03-112, Jan 1, 2003

Major Management Challenges and Program Risks: Federal Emergency Management Agency GAO-03-113, Jan 1, 2003

Major Management Challenges and Program Risks: National Aeronautics and Space Administration GAO-03-114, Jan 1, 2003

Major Management Challenges and Program Risks: Office of Personnel Management GAO-03-115, Jan 1, 2003

Major Management Challenges and Program Risks: Small Business Administration GAO-03-116, Jan 1, 2003

Major Management Challenges and Program Risks: Social Security Administration GAO-03-117, Jan 1, 2003

Major Management Challenges and Program Risks: U.S. Postal Service GAO-03-118, Jan 1, 2003

Full Report