Skip to main content

About PBGC

PBGC Blog: Retirement Matters

Joshua Gotbaum sitting with Adam Shapiro

In part two of the Fox Business two-part series "Nationwide Retirement Crisis," PBGC Director Josh Gotbaum says millions of Americans have no retirement savings, calling the issue a national crisis.

In his interview, Gotbaum addressed issues concerning the existing retirement system, including:

  1. The existing retirement system is not covering most people,
  2. It doesn't lead to enough saving,
  3. And it doesn't lead to lifetime income.

People are living longer, healthier lives, which means retirement will cost more.

Watch the complete video interview on the Fox Business website.

Joshua Gotbaum sitting with Adam Shapiro

In part one of a two-part series, "Insuring Private Pensions," Fox Business reporter Adam Shapiro and Pension Benefit Guaranty Corporation Director Josh Gotbaum, discuss the need for Congress to raise premiums to ensure 42 million Americans receive the pensions they were promised.

By now, you may have read news headlines addressing a study on PBGC premium increases released by the Pension Coalition. In an official PBGC statement, Gotbaum responded saying, "Unlike the FDIC and other Federal insurance programs, Congress has continued to set PBGC premiums and has done so in ways that both underfunds PBGC and is convincing some companies they shouldn't offer pensions at all."

In his interview, Gotbaum explains the specific PBGC-related issues that affect the retirement crisis.

Watch the complete video interview on the Fox Business website.

Line chart: ACSI Index. Retiree Results from 2009 to 2013: 89, 87, 90, 89 and 90. Federal Government Aggregate from 2009 to 2012: 69, 65, 67 and 68.PBGC's FY2013 Annual Report, released Friday, provides a detailed summary of our year — both successes and areas for improvement.

The 125-page review of the agency covers the period beginning Oct. 1, 2012 and ending Sept. 30, 2013.

PBGC's deficit increased to about $36 billion in FY2013, up from about $34 billion last year.

Opening with messages from PBGC Board Chair, Secretary of Labor, Thomas E. Perez and PBGC Director Josh Gotbaum, the report examines ways to improve the agency's financial health and highlights our great scores in customer service.

Retirees receiving benefits continue to rate PBGC as one of the best in government for its commitment to customer service. The agency ranks in the top 3 percent in a survey measuring 154 categories of customer responsiveness. Retirees gave PBGC a score of 90 on the American Customer Satisfaction Index (ACSI), more than 20 points above the government average. A score of 80 or higher is considered excellent, whether for a government agency or a private business.

Aside from our distinguished customer service, the report also discusses three overarching goals:

  • Preserve plans and protect pensioners
  • Pay pension benefits on time and accurately, and
  • Maintain high standards of stewardship and accountability

Since you're a Retirement Matters subscriber, you've been kept abreast of PBGC news as it happens. This report can give you further insight on the year in review at PBGC.

See the full FY2013 Annual Report (PDF).

Photo: Academy President-Elect Tom Terry, PBGc CEO Josh Gotbaum, Academy President Cecil Bykerk

Academy President-Elect Tom Terry, PBGC Director Josh Gotbaum, Academy President Cecil Bykerk
Source: American Academy of Actuaries

PBGC Director Josh Gotbaum addressed the American Academy of Actuaries board last week. He applauded the academy's discussion paper, "Risky Business: Living Longer Without Income for Life," and encouraged the group to continue its lifetime income initiative. Gotbaum also discussed PBGC's efforts promoting sound retirement systems, and provided several ideas for how Congress, the public, and employers could each do their part to make sufficient lifetime income a reality.

In August, an analysis by the academy supported the methods used by PBGC to calculate the agency's financial position. "The Pension Committee of the American Academy of Actuaries believes the methods and assumptions used by the PBGC produce a reasonable representation of the PBGC's current obligation and deficit," the group said.

Editor's note: Portions of this blog post were reprinted from This Week with permission from the American Academy of Actuaries.

Photo: PBGC Director, Joshua GotbaumShould the government shutdown, PBGC will stay open for business. All of us at PBGC—federal employees and contractors—will remain on the job. We will continue to pay benefits to the retirees who depend on us, to do our other work, and to honor our obligations.

This is not new. PBGC stayed open throughout the government shutdowns in 1995-96. That's because PBGC is different from most government agencies: Our funds are paid for by insurance premiums and plan assets, not taxpayer dollars.

As always, PBGC regards it as especially important to continue to do our work well, diligently, and with the dedication America's workers and retirees deserve.

The Wall Street Journal CFO Network Annual Meeting 2013 wrapped up last month. PBGC Director Josh Gotbaum participated in an interview session titled "The Great American Pension Crisis: Funding Past Promises and Future Retirement."

In his interview with Gabriella Stern, Deputy Managing Editor, WSJ Digital Network, Director Gotbaum focused on how U.S. companies will tackle mounting pension obligations in the coming years.

Dallas Salisbury, President and CEO, Employee Benefit Research Institute, also offered perspectives.

Take a look at the Dow Jones video recording of the interview. NOTE: The video may take a minute or two to fully load.