PBGC Ready for Year 2000 Date Change
FOR IMMEDIATE RELEASE
August 30, 1999
The Pension Benefit Guaranty Corporation (PBGC) today announced that all of its mission-critical systems are ready for the Year 2000 century date change. PBGC has tested the systems and has had independent verification and validation of the testing. As a precaution, the agency has contingency plans in place to ensure the capability to carry on the functions of these systems.
PBGC routinely pays pension benefits by check or electronic deposit near the end of each month. Thus, January 2000 payments will be made near the end of December 1999 and before any Year 2000 date changeover. PBGC expects that benefit payments thereafter will continue uninterrupted.
PBGC's Year 2000 readiness disclosure comes after a comprehensive review of its information systems, operations and third party relationships. The effort was led by PBGC Chief Financial Officer N. Anthony Calhoun. In addition, PBGC is consulting with its business partners on their "Y2K" readiness issues. However, the agency cannot ensure that other entities will be Y2K compliant.
PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974 to guarantee payment of basic pension benefits earned by some 42 million American workers and retirees participating in more than 44,000 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 investment returns.
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PBGC No. 99-31