We at the Pension Benefit Guaranty Corporation challenge each other each day to better serve the public in every way possible. We like to think we succeed — and now we are pleased that many of you agree.
PBGC received the fourth best score in a study of citizen satisfaction with federal government service, garnering a score of 90 in a report released on January 28. This puts us at levels of user satisfaction similar to high-performing private sector companies.
We achieved a similar breakout status in the same report a year ago.
The aggregate mark across the federal government was 66.1, close to the all-time low.
The 2013 ACSI report on citizen satisfaction is based on interviews with 1,448 users, chosen at random and contacted via telephone and email between October 11 and December 8, 2013. Respondents are asked to evaluate their recent experiences with federal government services.
Read the full ACSI Report on U.S. Federal Government 2013. (PDF)
PBGC will pay retirement benefits for more than 4,400 current and future retirees of Constar Inc., a plastic container manufacturer based in Trevose, Pa. just outside Philadelphia.
The agency stepped in because the company is selling the majority of its assets in bankruptcy proceedings and the buyer isn't assuming responsibility for the pension plan.
PBGC will pay all pension benefits earned by Constar's retirees up to the legal limit of about $59,320 for a 65-year-old.
Retirees will continue to get benefits without interruption, and future retirees can apply for benefits as soon as they are eligible.
By now, you have probably received your Form 1099-R from us.
As you arrange to have your income taxes prepared and filed, we would like to share some important information about PBGC benefits and taxes.
While PBGC is required to withhold federal income tax, we do not withhold for state taxes. If your state has an income tax, you may owe tax on your PBGC benefit. To find out more, contact your state tax office (Excel file, 14.4 KB).
Also, if you receive a benefit from PBGC, we report the amount annually to the IRS.
For income tax purposes, each January PBGC sends you an IRS Form 1099-R that states the amount we paid you the previous year.
If you need a Form 1099-R for 2013 and haven't received it, PBGC will get you one.
The IRS has a tool, "Is My Pension or Annuity Payment Taxable?" that will help you determine if your pension or annuity payment from an employer-sponsored retirement plan is taxable.
The beginning of a new year typically means the onset of new goals and perhaps the continuation of last year's resolutions. For many, saving more money might always be #1 or a close second on that list.
One source of this year's extra savings could be money from an unclaimed pension.
Across the country, there are more than 31,000 people who haven't claimed pension benefits they are owed. Those unclaimed pensions are now north of $280 million, with individual benefits ranging from 12 cents to almost $1 million.
The states with the most missing pension participants and money to be claimed are:
- New York (6,678/$40.33 million)
- Illinois (4,344/$85.36 million)
- California (2,966/$7.64 million)
- Texas (2,278/$10.68 million)
- New Jersey (2,114/$11.70 million)
- Ohio (1,908/$12.82 million)
On June 26, 2013, the Supreme Court ruled that Section 3 of the Defense of Marriage Act (DOMA) is unconstitutional.
Section 3 of the Defense of Marriage Act of 1966 defined "marriage" as a "legal union of one man and one woman as husband and wife" and a "spouse as "a person of the opposite sex who is a husband or a wife."
As a result, PBGC changed its policy to recognize same-sex marriages in our administration of benefits in terminated plans under the same rules applicable to opposite-sex marriages.
For a more detailed explanation of how PBGC recognizes marriage, please visit the "Benefits" section of our Workers & Retirees page.
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).