• Despite a heavy and growing workload, PBGC continued to provide high quality service to its customers as it paid more than $3 billion in benefits during 2004 to more than 518,000 people. At year-end, PBGC was responsible for the pensions of more than 1 million people, including 443,000 who will begin to receive benefits from PBGC when they retire in the future and 100,000 who are receiving or will receive benefits through PBGC's financial assistance to multiemployer plans.
• PBGC kept pace with its increasing workload by issuing a record 137,000 final benefit determinations during the year, exceeding the previous record set just one year earlier by nearly 50 percent. Final benefit determinations issued during the year exceeded the annual targets for accuracy, as only 2 percent had errors and 99.7 percent were issued with less than a 5 percent difference between the original estimate and the final benefit amount.
• PBGC introduced electronic services for its customers, with separate online facilities for plan participants and plan administrators. Internet-based electronic business transactions are now available around-the-clock for PBGC customers.
• Through litigation and negotiation, PBGC secured legal decisions and financial settlements that protected plan participants and the insurance program from millions of dollars in unnecessary losses.
• PBGC's performance management and strategic planning received high marks in the Corporation's first Program Assessment Rating Tool (PART) review by the Office of Management and Budget.
• PBGC unveiled a new Spanish-language section on its Web site to improve service to its growing population of Spanish-speaking customers.

Financials

• Losses for the single-employer program continued, more than doubling the program's deficit to a record $23.3 billion despite substantial income from premiums and investments.
• The multiemployer program reported net income of $25 million and a reduced year-end deficit of $236 million.
• PBGC received its 12th consecutive unqualified audit opinion on its financial statements, which for the first time were made available to the public 45 days after the end of the fiscal year.
• PBGC adopted and began implementing a new investment policy to better manage the financial risks facing the insurance program.

Table - Highlights

Perspectives on the Year

PBGC's annual benefit payments continued to rise, exceeding $3 billion for the first time as the number of people receiving monthly payments passed 500,000.

Total premium revenues increased to $1.5 billion, reflecting increases in the amount of variable-rate premiums paid by underfunded plans.

PBGC took responsibility for the benefits for 147,500 new participants during the year, well above historical norms.

PBGC issued almost 50 percent more final benefit determinations in 2004 than in any prior year.

About 1,189 standard terminations were submitted to PBGC during 2004, slightly more than last year and the first increase in 14 years.

While the number of PBGC-insured plans continued a slow decline, the number of covered participants increased slightly from 44.1 million to 44.4 million.

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