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News & Policy

PBGC Acts to Correct National Steel Pension Errors

April 15, 2011

Washington—The Pension Benefit Guaranty Corporation issued the following statement today about the problems cited in a recent inspector general report on the takeover of National Steel’s pension plans in 2003:

“As soon as I joined PBGC, we acted on our inspector general’s concerns—to correct mistakes that were made eight years ago, and ensure that no one was harmed as a result. We will make sure this never happens again,” said PBGC Director Josh Gotbaum, who was appointed to lead the agency in July.

Although, as the report notes, no one yet knows if any pensioner’s benefits were actually reduced because of the audit, Gotbaum said anyone who’d been harmed “will be paid back with interest—and an apology. PBGC protects peoples’ pensions. We take that responsibility very seriously and we are committed to set things right.”

The agency hired an independent CPA firm to redo the asset audit work done eight years ago. PBGC also hired new public accounting firms to perform future asset audits.

PBGC expects to know this summer whether any National Steel retirees were affected by the audits. At the request of Senators Franken and Klobuchar, the PBGC Director has agreed to meet personally with National Steel retirees in Minnesota as soon as that information is available.

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PBGC No. 11-38