Director's Transmittal Letter

I am pleased to transmit the enclosed copy of the Pension Benefit Guaranty Corporation's Annual Management Report for fiscal year 2006.  This report includes the PBGC's financial statements, the reports of its Inspector General and independent auditor on the Corporation’s financial statements and internal controls, and the Corporation's Annual Performance Report as required under the Government Performance and Results Act. 

The PBGC's mission is mandated under Title IV of the Employee Retirement Income Security Act of 1974 (ERISA) to insure, under statutory limits, pension benefits of participants in covered private defined benefit pension plans in the United States.  More specifically, the Corporation's goals are to safeguard the federal pension insurance system for the benefit of participants, plan sponsors, and other stakeholders; provide exceptional service to customers and stakeholders; and exercise effective and efficient stewardship of the PBGC resources.  During 2006, the PBGC achieved its goals through support for the Congressional passage of pension reforms to strengthen the private defined benefit system and the federal pension insurance program; continued prompt and accurate delivery of services to its customers; and careful management of its financial, technological, and human resources.

The financial and performance data included in this report are reliable and complete.  The Corporation has received its 14th consecutive unqualified audit opinion on its financial statements and 3rd consecutive unqualified opinion on management’s assertion regarding the effectiveness of the PBGC’s internal controls from its independent auditor, whose reports are included within this Annual Management Report.  As further discussed within these reports, as well as the enclosed Management Representation and Chief Financial Officer’s letters, the independent auditor reported on the status of several prior reportable conditions.  The PBGC is actively addressing these reportable conditions.  None of these conditions rose to the level of a material weakness.

Sincerely,

Vincent K. Snowbarger
Interim Director

November 15, 2006                                                               

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