Building A More Secure PBGC

By Director Charles E.F. Millard

 

Several years ago, news about the Pension Benefit Guaranty Corporation focused on our severe and growing financial problems. In fact, as of the end of September 2004 PBGC was reporting a financial deficit of $23.3 billion, and there was grave concern about PBGC’s future ability to protect and pay guaranteed benefits. Much has happened since then, including the enactment of laws to strengthen the private pension system and PBGC’s financial standing. PBGC’s financial condition also has improved significantly. As of the end of September 2007 our deficit had fallen to $13.1 billion.

While this does not mean that PBGC is out of the woods yet financially, it is an encouraging sign for the future. Still, we have much work to do to assure PBGC’s ability to carry on its mission far into the future. We at PBGC are mindful of that task. We are sparing no effort and overlooking no measure that would help us build a stronger, more secure pension insurance program. With that in mind, I am pleased to tell you that PBGC has recently adopted a new investment strategy that we believe will help to ensure that PBGC can meet its long-term obligations to you and the 1.3 million other Americans who now rely directly on PBGC for their pensions. This new strategy offers several advantages:  it should generate higher returns, it reduces our investment risk through broader asset diversification, and it gives us a 57 percent likelihood of full funding within ten years, compared to 19 percent under the previous policy. This gives PBGC a much sounder foundation for the future.

I encourage you to visit our Web site, www.pbgc.gov, to find the latest news about PBGC and to take advantage of MyPBA, our online service for participants in trusteed plans. MyPBA is a convenient way for you to conduct business with us electronically, and it’s available all day every day of the year. You can find more information about MyPBA on our Web site at www.pbgc.gov/docs/MyPBA.pdf.

If you have any questions, or should you ever incur any problems with your pension, our Participant Problem Resolution Officer stands ready to assist you. The Problem Resolution Officer can be reached by phone at: 1-800-400-7242 ext. 4014, by e-mail at: participant.pro@pbgc.gov, or by writing to: Problem Resolution Officer, Pension Benefit Guaranty Corporation, 1200 K St. NW, Room 12531, Washington, D.C., 20005.

 

The Pension Protection Act of 2006 provided that PBGC be headed by a Director appointed by the President with the advice and consent of the United States Senate. Charles E.F. Millard is the first Director to be so appointed and confirmed.

 

Inside this issue

 

Page 2

Finding Missing Property

If You Write to PBGC

Set Up Your MyPBA Account?

Información en Español

Page 3

Help with Health Insurance Costs

Newsletters on the Web

More Satisfied with PBGC Service

Page 4

Keep Us Informed

 

Finding Missing Property

 

You may know that PBGC has a searchable list (https://search.pbgc.gov/mp/) of participants in terminated defined benefit pension plans who have not been located and have forgotten pensions they may claim from PBGC. But did you also know that states have a similar-type service for property such as old checking accounts, safe-deposit box contents, and uncashed checks that the state considers to be unclaimed or abandoned under state law?  The process through which unclaimed property is turned over to a state authority is known as escheatment—the property “escheats” to the state.  Note that real estate does not escheat to a state.

Sometimes states will run newspaper advertisements listing owners of property that the state is now holding.  But there is another way to find out if a state is holding your property—you can go to MissingMoney.com, which is a Web site that is endorsed by the National Association of Unclaimed Property Administrators (NAUPA).  Searching on MissingMoney.com is free and allows you to search 39 states at once, and the site has contact information for all states. NAUPA also has a Web site (www.unclaimed.org/) with additional information about unclaimed property.

 

Have You Set Up Your MyPBA Account Yet?

 

MyPBA, PBGC’s secure Web site for participants in PBGC-trusteed plans, has some exciting new features!  MyPBA is an online service accessed through PBGC’s Web site that allows you to complete a number of transactions electronically from the convenience of your home. PBGC recently added a feature to MyPBA that allows participants to view and print their IRS Form 1099-R for income tax filing. We have also added a helpful video demonstration that walks you through the various transactions possible through MyPBA. These include requesting a benefit estimate, applying for a benefit, and updating your mailing address, telephone number, or e-mail address. Have your plan information handy and go to www.pbgc.gov/mypba to create your account today!

 

Información en Español

 

Para recibir la Hoja Informativa en español, llame a nuestro Centro de Contacto del Cliente al 1-800-400-7242. Para los usuarios del servicio TTY/TDD, llame al Servicio de Retransmisión Federal, al número telefónico gratuito, 1-800-845-6136, y pida que lo comuniquen con el 1-800-400-7242. Además hay varias publicaciones de PBGC en español y todas están disponibles bajo el icono “en Español” que se encuentra en la parte superior de la página principal de nuestro sitio Web, www.pbgc.gov.

Las coordinadoras de servicios en español para la PBGC son Orfanny Vanegas y Linette Henry. Si usted necesita ayuda, llame al 1-800-400-7242, envíe un mensaje a foreignlanguagesupportteam@pbgc.gov, o escriba a: PBGC, Contacto de Habla Hispana, PBGC, P.O. Box 151750, Alexandria, VA 22315-1750.

 

If You Write to PBGC…

 

PBGC receives around 14,000 pieces of mail each month. While we can process most mail efficiently, some mail does not arrive with enough identifying information to allow us to put it with the proper participant’s file. If we cannot tell who the mail is about, our processing of the mail is delayed. For your sake and ours, when sending any correspondence to PBGC be sure to include the participant’s full name, pension plan name, pension plan number, and the last four digits of the Social Security Number. Including this information on every document will help us to process your mail in a timely manner.

 

Get Help with Health Insurance Costs When You Retire

 

Individuals receiving PBGC benefits who are age 55 or older and not eligible for Medicare may be eligible for a tax credit that helps pay for qualified health insurance. If you are eligible for the Health Coverage Tax Credit (HCTC), which is administered by the Internal Revenue Service, you may also be able to apply for National Emergency Grant (NEG) funds, which are available in certain states to help individuals pay for qualified health coverage until they begin receiving the monthly tax credit through the HCTC Program. Contact the U.S. Department of Labor at 1-877-US-2JOBS (1-877-872-5627) and ask if your state has a NEG Program. For more information about the HCTC, visit the IRS Web site at www.irs.gov (IRS Keyword: HCTC), or call the HCTC Customer Contact Center at 1-866-628-4282 (TTD/TTY: 1-866-626-4282).

 

Newsletters on the Web

 

For your convenience, PBGC has posted previous editions of this newsletter on its Web site. Simply go to the “Workers & Retirees” page on the Web site (www.pbgc.gov) and click on the link at the bottom left corner of the page for “Future retirees newsletters” to see our listing of newsletters dating back to 1998. Some of the topics that have been covered include:

 

“Social Security Web Page Provides Retirement Planning Information” (Summer/Fall 2001)

 

“Planning to Retire Soon?” (Spring/Summer 2004)

 

“Locking in Your Annuity Starting Date” (Fall/Winter 2005)

 

“Problem Resolution Officer Resolves Complaints” (Spring/Summer 2006)

 

“When PBGC Takes Over a Pension Plan” (Spring/Summer 2006)

 

Customer Contact Center Provides Range of Services” (Spring/Summer 2006)

 

“Consider Having a Power of Attorney” (Fall/Winter 2006)

 

“Your Pension and Divorce” (Fall/Winter 2006)

 

Workers and Retirees More Satisfied With PBGC Service

 

PBGC recently surveyed pension plan participants who had called the agency’s Customer Contact Center. PBGC uses frequent surveys to measure customer satisfaction and to identify opportunities to respond quickly to customer needs and expectations.

The survey showed a significant improvement of 6 points over the 2007 survey, up from 78 to 84 on a 0-100 scale. Customers continued to give very high ratings to the respectfulness of the PBGC telephone representatives. Scores improved significantly for the timeliness, responsiveness, and follow-up provided by PBGC representatives. Customers also gave high scores to PBGC’s written communications, noting in particular that the benefit estimates are easy to understand. During the last year or so, PBGC has reviewed and revised many of its written communications and has expanded training and monitoring of its call center representatives, both with the aim of better meeting customer needs.

PBGC is delighted that its customers have noticed and are pleased with recent improvement efforts. Further customer-focused improvements are planned, and PBGC will continue to survey its customers regularly to identify the improvements they want most. If you are contacted to participate in a PBGC customer satisfaction survey, please take a few moments to share your thoughts. Your answers are anonymous, and PBGC relies on your candid feedback.

 

Keep Us Informed. Call 1-800-400-7242

 

It is important to let us know when you have a change in address, name, or telephone number. You can do this by using our online service, MyPBA, which is available at www.pbgc.gov/mypba, or by calling our Customer Contact Center toll-free at 1-800-400-7242. [TTY/TDD users may call the Federal Relay Service toll-free at 1-800-877-8339 and ask to be connected to PBGC’s toll-free number.] You may also write to us at: PBGC, P.O. Box 151750, Alexandria, VA 22315-1750. If you write us, please include your full name, the pension plan name, the pension plan number, and the last four digits of your Social Security Number on your correspondence.

Our Customer Contact Center is available to receive your calls Monday-Friday, 8:00a.m. to 7:00 p.m. Eastern time. In order to avoid a wait, however, it is generally better to call after the 3rd of each month and on Wednesday, Thursday, or Friday. If you do call during a busy time, you don’t have to hold for the next available representative. Instead, you have the option to request that the next available representative call you back. Your request actually holds your place in line and you can generally expect to receive a call back within 10 minutes. Our system will automatically dial back the telephone number you indicate, but you must be using a touch-tone telephone. The representative will make three attempts to reach you in case you step away from your telephone momentarily.