CHAIRMAN'S MESSAGE

For the Pension Benefit Guaranty Corporation, as for our country as a whole, the past year has been a turbulent one. Corporate bankruptcies, pension plan failures, the volatility of our financial markets—all have taken a toll on the pension insurance program. The resulting losses have turned PBGC’s surplus into a deficit for the first time since 1995.

We must not, however, overlook the positive signs for both our country and PBGC. Our country has responded to the tempests of the past year with unity and strength. Our economy’s fundamentals are strong. Inflation is low. Consumers are benefitting from interest rates not seen since the 1960s. Productivity continues to rise, and other economic signals are equally encouraging. Just as important, the President has moved quickly to restore faith and confidence in the integrity of our financial markets and economy.

PBGC has met its challenges with a similar fervor. The Corporation has seen its workload soar amidst growing concerns about the health of our private pension system. Nearly 800,000 American workers, retirees and their families—people whose pension plans have failed—now rely on PBGC for their retirement security. And PBGC is guaranteeing their security through innovation, diligent effort and commitment to the highest standards of customer service.

For 28 years PBGC has been a stalwart protector of traditional pensions. As the Corporation faces its biggest financial challenge in a decade, it will continue to play a strong and vital role in our nation’s effort to ensure the retirement security of working men and women across our country.

Elaine L. Chao
Secretary of Labor
Chairman of the Board

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