With members of Congress, President Gerald R. Ford signed the Employee Retirement Income Security Act(ERISA) of 1974 on Monday, September 2, 1974. ERISA established the Pension Benefit Guaranty Corporation.
On Sept. 2, 2014, PBGC celebrated its 40th year of protecting pensions. And yesterday, PBGC released its FY 2014 Annual Report, highlighting the agency's accomplishments and areas for improvement. The review period covers Oct. 1, 2013 through Sept. 30, 2014.
PBGC's deficit increased to $62 billion in FY 2014, up from $36 billion the year before. The deficit increase is largely driven by the declining financial condition of a few multiemployer plans. The deficit in the multiemployer program grew to $42.4 billion, compared with $8.3 billion last year. This increase is largely due to the fact that several additional multiemployer plans are now expected to run out of money within the next decade. But the single-employer program's deficit saw an improvement and dropped to $19.3 billion, down from $27.4 billion in 2013.
In her message, Acting Director Alice Maroni acknowledged that the picture of retirement has changed, but PBGC remains as important as ever. She also addressed the challenges facing the multiemployer insurance program.
Despite the larger deficit, PBGC continued to receive high marks in customer service from workers and retirees. And this year, in July, PBGC launched a new email for customers and stakeholders called Retirement Recap. The email is a collection of the most popular blog entries and other significant items. The first edition was sent to about half a million people, and traffic to PBGC.gov more than quadrupled the day of the mailing.
For its innovative efforts to keep customers and stakeholders informed, PBGC received the Outreach & Impact Maximizer Award (PDF) from GovDelivery, a private sector communications platform, in August.
This year, PBGC also saw the creation of a new position. The Board of Directors appointed the Participant and Plan Sponsor Advocate. The Advocate serves as a liaison between the agency, sponsors of defined benefit plans, and participants in plans trusteed by the PBGC.
The full report (PDF) details our operations, how we measure success, progress in achieving goals, and customer service initiatives.
For informational purposes only, this PBGC communication may contain links to websites not affiliated with the United States Government. Links to these websites do not constitute an endorsement or approval by PBGC or any of its employees regarding the information, service, product, or provider presented on the website. PBGC cannot attest to the accuracy of information provided by such websites. Please see PBGC's full disclaimer here.
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