EXECUTIVE DIRECTOR'S MESSAGE

By any standard, the Pension Benefit Guaranty Corporation has just completed a remarkable year. Although my appointment as Executive Director came after the end of the fiscal year, I take pleasure in reporting that PBGC achieved unprecedented productivity in the face of daunting problems. The Corporation protected the retirement benefits of more workers, processed benefits for more people, and provided American workers with higher quality, more timely information than in any previous period in its history. PBGC also began an extensive effort to transform how it does business. Its redesigned Web site opens the way for electronic transactions that soon will mark a new era in customer service.

These accomplishments came despite a surge in PBGC's workload, which accompanied a rush of large plan terminations. Regrettably, I also must report that losses associated with these terminated pension plans and our equity investments resulted in a decline of the single-employer program net position from $9.7 billion to $7.7 billion.

As part of its strategic goals, the Corporation is committed to providing pension participants and practitioners the highest level of service. Among other things, this entails reduced processing times in all areas of PBGC operations, including plan termination and trusteeship, benefit determinations and premium inquiries and refunds. We have made progress in these areas, as shown by our results in the past year, and we will continue to explore ways to further improve our performance in the future.

Future challenges remain ahead, but we are well-positioned to meet those challenges. PBGC stands ready to protect the retirement security of American workers and the interests of our nation's private pension system.

Steven A. Kandarian
Executive Director

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