CHAIRMAN'S MESSAGE

One of this Administration's highest priorities is protecting the retirement security of America’s workers and retirees.  In 2007, the President signed into law the most comprehensive reforms of America’s pension laws in more than 30 years, the Pension Protection Act of 2007 (PPA) and the premium reform provisions of the Deficit Reduction Act.  With the successful passage of the PPA and Deficit Reduction Act, we have taken an important step forward in improving our defined benefit pension system and the insurance program that backs it.  These laws, which incorporate many of the President's 2005 pension reform proposals, establish sound standards for pension funding, increase transparency and accountability to workers, and reinforce the pension insurance system.   

Enacting pension reform is a major achievement that benefits workers, retirees, and all stakeholders in the defined benefit system.  The next challenge is developing the regulatory rules and guidance needed to implement the new requirements.  That process is well underway.  The Pension Benefit Guaranty Corporation and other agencies charged with administering the federal pension law are working diligently to implement these crucial reforms in as clear and timely a manner as possible to ensure a strong and stable defined benefit system. 

The passage of pension reform has affirmed the principle that pension promises made to workers are promises that must be kept.  However, there is still much work to be done to ensure the PBGC has sufficient assets to meet its long term obligations, such as adoption of the Administration’s two premium reform proposals not enacted as part of the PPA.  For its part, this Administration will continue its efforts to ensure that pension promises made to America’s workers and retirees are honored in full.

Elaine L. Chao
Secretary of Labor
Chairman of the Board

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