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News & Policy

Statement of Acting Director Vince Snowbarger on Inspector General Audit Report

May 14, 2009

WASHINGTON -Vince Snowbarger, acting director of the Pension Benefit Guaranty Corporation, issued the following statement today:

"A draft report from the PBGC Office of the Inspector General went into circulation on Thursday. The report details the actions of former director Charles E.F. Millard in connection with the hiring of three strategic partners (BlackRock, Goldman Sachs and J.P. Morgan) to manage real estate and private equity investments for the PBGC.

"We take the Inspector General's report very seriously. The PBGC board has accepted the recommendation that future directors refrain from involvement in the procurement process, and PBGC management will work with the board to implement.

"No PBGC assets have been transferred to our strategic partners for investment in private equity and real estate. We will work with our board to decide whether these contracts should be terminated and whether strategic partnerships fit into the board's investment approach going forward."

The PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974. It currently guarantees payment of basic pension benefits earned by 44 million American workers and retirees participating in over 29,000 private-sector defined benefit pension plans. The agency receives no funds from general tax revenues. Operations are financed largely by insurance premiums paid by companies that sponsor pension plans and by investment returns.

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PBGC No. 09-26