ANNUAL PERFORMANCE REPORT
PBGC updated its strategic plan for fiscal years 2004-2008. The updated plan reflects two revised strategic goals and new performance measures focused on customer satisfaction, underfunding of insured pension plans and PBGC’s cost-effectiveness. The PBGC goals, aligned with its mission, are to:
encourage a stable, adequately funded system of private pension plans; and
PBGC’s new performance measures build on customer service strategies and performance measures initiated in the late 1990’s. These measures track and gauge PBGC’s customer service accomplishments and the cost efficiency of its insurance programs. In addition to measuring the satisfaction of participants who call the Corporation and pension professionals who submit filings, PBGC now measures customer satisfaction through all modes of contact, including its website.
PBGC’s strategic plan may be found on PBGC’s Web site at www.pbgc.gov/about/stratplan.html. The following table shows the results achieved in 2004. This meets the annual reporting requirement of the Government Performance and Results Act.
Table - 2004 PBGC Corporate Performance Measures
Achieving Performance Targets
Encouraging a Stable, Adequately Funded System of Private Pension Plans
Underfunding of the insured defined benefit plans continued to increase in 2004. While the funding levels for insured plans is largely outside of PBGC’s control, the Corporation has attempted to improve the overall administration of the defined benefit insurance system through review of its rules and regulations, intensified monitoring of risks to the insurance system and improved interaction with key stakeholders in the defined benefit pension community.
PBGC actively promoted comprehensive reform of the pension insurance system to address system underfunding through congressional testimony, news releases and statements, speeches and interviews. In each of these instances, PBGC has forcefully made the case for new rules to ensure that pension plans are better funded and that the pension insurance system remains viable over the long-term. During 2004, PBGC was a highly visible advocate for the Administration’s proposals to improve liability measures, enhance disclosure, and strengthen safeguards against underfunding. PBGC performed all of the computational analysis in support of the Administration’s ongoing development of a comprehensive reform proposal, and monitored 25 controlled groups involving 68 plans that had requested a minimum funding waiver in excess of $1 million. These plans covered over 1.1 million participants and had a total $17.3 billion in unfunded benefit liabilities. In addition, PBGC monitored 942 controlled groups with 2,918 pension plans to analyze the financial conditions of the companies and plans that pose a risk to the insurance system.
Provide Responsive, Timely and Accurate Service to Participants in Trusteed Plans
The American Customer Satisfaction Index (ACSI) is a national indicator of customer satisfaction. More than 200 private sector companies and 70 federal agencies participate in the index. PBGC’s 2004 index for pension practitioners was 69, the same as in 2003 and 2002. While slightly lower than the 2003 combined index of 71 for all federal agencies, it was well above the indices for comparable federal collection programs. ACSI results identify causes and effects of satisfaction and focus PBGC’s efforts on improving three activities: customer care, forms and instructions, and refunds of premium overpayments. The 2004 index for pension practitioners who visited PBGC’s website was 72. This was two points higher than the combined average of 70 for federal government websites.
PBGC’s 2004 ACSI index for participants who contacted the Corporation for service was 78. This was one point higher than the target of 77 and seven points higher than the 2003 federal government average of 71. For retirees who receive benefits from PBGC, the 2004 ACSI index was 84. This was the second highest score among the federal agencies that provide benefits to the American public and considerably higher than the federal average of 71. The 2004 ACSI Index for participants visiting the website was 60. PBGC has identified and is implementing measures to better serve participants through the Internet by expanding electronic business transactions, increasing plan-specific information, and providing on-line benefit calculators.
President’s Management Agenda
The President’s Management Agenda focuses on five areas of improvement to promote a citizen-centric, results-oriented federal government. PBGC met this challenge in 2004 by:
Program Evaluation
PBGC annually evaluates the satisfaction of participants in plans trusteed by PBGC and of pension practitioners who have dealings with PBGC on premium payment or standard termination matters. The American Customer Satisfaction Index provides the evaluations and a means to compare PBGC’s results with that of other government and private organizations. Evaluation of the survey responses resulted in improvements in program operations.
In 2004, PBGC had its first Program Assessment Rating Tool (PART) review by the Office of Management and Budget (OMB). The PART evaluates the effectiveness and efficiency of an agency using a scale of 0-100. OMB rated PBGC’s program as "moderately effective" overall with a score of 79. PBGC received scores of 80 or higher for the three assessed areas of Program Purpose and Design, Strategic Planning and Program Management. Because the private defined benefit pension system has become seriously underfunded during the past two years, a condition largely outside of PBGC’s control, OMB rated the Corporation a score of 75 for Program Results/Accountability. To address this problem, PBGC is aggressively exploring opportunities to strengthen its pension plan monitoring program, and through legislative and regulatory reform, encourage better funding of the defined benefit system.
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