Statement from PBGC Director Charles E. F. Millard following hearing of the House Education and Labor Committee
FOR IMMEDIATE RELEASE
October 24, 2008
"The PBGC in stronger financial condition than it was a year ago. Our deficit is down about $3 billion from last year's $14 billion. Retirees who depend on us should not be concerned --the PBGC has sufficient funds to meet our benefit obligations for years into the future. To ensure our long-term ability to pay benefits, we have adopted a new investment policy that is diversified to mitigate risk. It gives us a better chance--3 times better-- to eliminate the deficit without a taxpayer bailout. The new policy will be very diverse, and our portfolio will ultimately include more in equity than it currently contains. However, the slow and deliberate approach we have taken to implementation has protected us from greater declines in this time of turmoil.
"Our portfolio is down 6.5 percent over the last 12 months. We would rather be up, but in these trying times, retirees who depend upon us should feel secure knowing that our deficit is down over $3 billion this year. "
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PBGC No. 09-02