A MESSAGE FROM THE DIRECTOR
The Pension Benefit Guaranty Corporation has an important responsibility in protecting the retirement security of over 33 million workers, retirees, and their families who rely on private sector defined benefit pension plans. PBGC’s team of dedicated professionals understands the impact of their work and strives to meet the highest levels of customer service in fulfilling the agency’s mission.
In 2022, PBGC ranked number one in the small agency category of the “Best Places to Work in the Federal Government,” an achievement that reflects the teamwork, talent, and commitment to excellence across the entire organization.
For the second year in a row, both PBGC’s Multiemployer Program and Single-Employer Program have a positive net position at fiscal year-end. The Multiemployer Program had a positive net position of $1.1 billion at the end of FY 2022, compared to $481 million at the end of FY 2021, an improvement of $577 million. PBGC’s Single-Employer Program remains financially healthy with a positive net position of $36.6 billion at the end of FY 2022, compared to $30.9 billion at the end of FY 2021, an improvement of $5.7 billion.
This year, PBGC has made significant progress in implementing the Special Financial Assistance (SFA) Program, established under the American Rescue Plan Act of 2021. The law addresses the solvency of PBGC’s Multiemployer Program, which was projected to become insolvent in 2026. The SFA Program provides funding assistance to severely underfunded multiemployer pension plans and will ensure that millions of America’s workers, retirees, and their families receive the pension benefits they earned through many years of hard work.
The agency continues to diligently implement the SFA Program by issuing regulations and guidance, developing internal controls to mitigate risks, and processing applications for financial assistance. During FY 2022, PBGC paid $7.5 billion in SFA, all of which was paid pursuant to applications approved under the provisions of the interim final rule. The agency remains committed to ensuring that the purposes of the SFA Program are realized in the coming months and years ahead.
In FY 2022, PBGC also continued to improve the agency’s IT infrastructure, services, and security posture. PBGC’s achievements in strengthening cybersecurity are reflected in high-level FISMA ratings for all major components of our cybersecurity program, with PBGC receiving an “effective” rating for its FISMA program for the second consecutive year.
The FY 2022 Annual Report is the 30th consecutive year the agency has received an unmodified audit opinion on its financial statements and the seventh consecutive year of an unmodified audit opinion on internal control over financial reporting. Additionally, as required by OMB Circular A-136, I am pleased to confirm with reasonable assurance the completeness and reliability of the data presented in the FY 2022 Annual Management Report and the FY 2022 Annual Performance Report, included in this Annual Report.
PBGC’s success in delivering vital services to those who rely on the insurance programs are made possible because of our dedicated professionals and the ongoing support of our Board and their staff. I am proud and honored to lead PBGC as we all work together to strengthen the retirement security of millions of Americans.
November 15, 2022