CHAIRMAN'S MESSAGE

The events that affected defined benefit pension plans during 2005 demonstrated, as never before, how critical the Pension Benefit Guaranty Corporation is to the economic well-being of American workers and retirees. As a result of the largest and most complex plan terminations in PBGC history, the number of people who now rely upon the PBGC for their retirement security has increased, as have the Corporation’s assets and liabilities. Nearly 1.3 million people now depend on the PBGC to provide the pensions they earned through a lifetime of work.

Throughout 2005, this Administration undertook extensive efforts to obtain the reforms needed to shore up both the defined benefit pension system and the insurance program that backs it. This Administration firmly believes that promises made to workers must be kept and that workers must not lose pension benefits they had counted on for their retirement. The enactment of pension reform is the critical first step in the process of ensuring a strong and stable defined benefit system.

As Chairman of the PBGC’s Board of Directors, I look forward to continuing the effort to ensure that the retirement security promises made to workers are kept.

Elaine L. Chao
Secretary of Labor
Chairman of the Board

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