A MESSAGE FROM THE DIRECTOR
We recently marked the 45th anniversary of the Pension Benefit Guaranty Corporation (PBGC or the Corporation). Since 1974, PBGC has played a vital role in protecting the retirement security of millions of American workers and retirees. First, as a guarantor, the Corporation provides insurance coverage for the retirement benefits of over 35 million workers and retirees. Second, as trustee and administrator, the Corporation provides retirement security for about 1.5 million participants and beneficiaries in more than 4,900 plans that have failed since PBGC was established.
The Corporation is in a difficult financial position today. The Single-Employer Program continues to see improvement; however, it still faces considerable risk. The Multiemployer Program faces a crisis that threatens the retirement security of millions of American workers, retirees, and their families. Without reforms, our Multiemployer Insurance Program - the backstop that is the last resort for retirees when a plan fails - is very likely to become insolvent in 2025, leaving participants and beneficiaries with significantly less than the level of benefits guaranteed by the PBGC. The alarm bells are ringing, and legislative changes are necessary.
PBGC will continue to provide ongoing technical support to policymakers, stakeholders, and plan sponsors to help preserve plans and protect participants and their families. Congress should enact a long-term, sustainable bipartisan solution that appropriately balances the interests of retirees, workers, taxpayers, plans, employers, and unions in improving retirement security for hard-working Americans and their families. I look forward to working with all stakeholders - the White House, the Departments of Labor, Treasury, and Commerce, Congress, the multiemployer plan community, workers, employers, unions, and retirees - to find a responsible legislative solution.
Another priority at PBGC is updating technology. In FY 2019, PBGC took responsibility for the benefits of more than 103,000 participants in newly trusteed plans. In order to provide the highest level of customer support, PBGC is modernizing its benefits payments processing and financial systems. In addition to improved customer service and productivity, a goal of IT modernization is to give PBGC the flexibility to handle any future legislative changes that may impact our Multiemployer Program.
Mitigating data loss is another critical priority. As technology advances, there is evidence that attacks are occurring more frequently. We have begun to build a robust insider threat program and have formally established a crossdepartmental working group to update policies, procedures and technology. This will better protect data from inadvertent or intentional loss or misuse and enable us to effectively respond to insider threats. The Corporation has also launched a data loss prevention tool to prevent data leakage and monitor unusual activity.
I am proud to lead PBGC's talented staff, who are passionate about the Corporation’s mission. PBGC's team of committed professionals understand that what they do has a real impact on people. I look forward to successfully leading PBGC to provide the highest-level of customer support to workers and retirees, ensure its viability, and help it prepare for the future.
November 15, 2019