U.S. Department of Labor
Lori Chavez-DeRemer, Secretary of Labor
Courtney Walter, Senior Counselor, Office of the Secretary
Daniel Aronowitz, Assistant Secretary, Employee Benefits Security Administration (EBSA)
Jack Lund, Senior Policy Advisor, EBSA
U.S. Department of the Treasury
Luke Pettit, Assistant Secretary for Financial Institutions
U.S. Department of Commerce
Howard Lutnick, Secretary of Commerce
Joyce Meyer, Under Secretary of Commerce for Economic Affairs
George Cook, Chief of Staff of Commerce/Acting Director of the U.S. Census Bureau
Julie Beckhusen, Chief, Industry and Occupation Statistics Branch (Census)
Pension Benefit Guaranty Corporation (PBGC)
Janet Dhillon, Director
LaTasha Thomas, Special Advisor to the Director
Karen Morris, General Counsel and Secretary to the Board
Lisa Carter, Acting Chief Financial Officer (Acting CFO)
Michael Rae, Acting Chief Policy Officer
David Foley, Chief of Benefits Administration
John Hanley, Chief of Negotiations and Restructuring
Christopher Bone, Director, Policy, Research and Analysis Department
David Mudd, Chief Investment Officer
Jennifer Pettyjohn, Deputy Chief Investment Officer
PBGC Office of Inspector General
Nick Novak, Inspector General
PBGC Office of the Participant and Plan Sponsor Advocate
Anne Henderson, PBGC Participant and Plan Sponsor Advocate
The Chair called the meeting to order, welcomed the attendees to the first PBGC Board meeting of 2026, and reviewed the agenda. The Chair recognized PBGC Director Janet Dhillon.
The Director stated that since taking office on November 3, 2025, she has been impressed with the PBGC team, and the rigor with which the agency has managed the Special Financial Assistance (SFA) program. The Director reported on the significant positive net position of PBGC’s single-employer insurance program and the need to address premiums and other factors weakening the system. Discussing the multiemployer insurance program, the Director highlighted that since inception of the SFA program in 2021, PBGC has approved 174 SFA applications and paid $74.1 billion to applicant plans. The Director intends to increase PBGC's compliance assistance and will start by reinvigorating the agency's Opinion Letter program.
The Chair thanked the Director, acknowledging the need to address premium concerns and recognizing the benefit of opinion letters as helpful guidance.
The Chair asked for approval of the minutes of the January 13, 2026 meeting of the PBGC Board Representatives. The Board unanimously the meeting minutes by voice vote. The Chair recognized General Counsel Karen Morris for a Legal Report.
Ms. Morris highlighted the Board’s responsibilities under the PBGC bylaws and provided an update on significant multiemployer litigation.
The Chair recognized Acting CFO Lisa Carter and her team for an overview of PBGC’s Investment Policy Statement (IPS).
Ms. Carter outlined the Board’s obligation to review PBGC’s IPS at least every two years and approve the IPS at least every four years. Chief Investment Officer David Mudd introduced Deputy Chief Investment Officer Jennifer Pettyjohn and Chris Bone, Director of PBGC’s Policy, Research and Analysis Department.
Mr. Mudd described PBGC’s governance, including the statutory framework of the agency’s investment policies and its funds. He explained the history of PBGC’s liability driven investment (LDI) policies, noting the financial strength of PBGC's single-employer insurance program. Mr. Mudd provided details on investment performance of equities, bonds, and investment limitations.
Mr. Mudd and Ms. Pettyjohn discussed the impact of the LDI policies, designed to match liabilities with cash flows, and how this investment policy would have performed in comparison to a total return model. They noted that when the LDI policy was implemented in 2016 and 2017, the risk of single-employer plan failures was significant because plans were less well funded and plan sponsor bankruptcies were more common.
Ms. Pettyjohn addressed how a higher risk investment model might have changed the return-based outcome, explaining that adopting a higher risk investment model would have increased returns and volatility, while the LDI strategy defeased some volatility in PBGC’s insurance program funding.
The Chair stated that a new IPS, developed with the Board’s expertise, will address the single-employer program surplus and excessive fees.
Mr. Mudd reported that PBGC consistently outperformed its investment benchmarks, the LDI strategy worked as intended and agreed to provide the Board with the statutory limitations covering PBGC’s fund investments. He explained that PBGC’s investments must address the agency’s long-term pension payment obligations and described PBGC’s interest rate hedge ratio and surplus volatility.
Mr. Mudd and Ms. Pettyjohn addressed questions about steps to improve investment performance to better serve participants and beneficiaries, noting that risk tolerance is defined by the IPS, which allows PBGC to diversify its investments to reduce risk.
Next, Mr. Bone reported on the actuarial data underlying PBGC’s investments. Mr. Bone explained that pension obligations are like bonds; when interest rates decline, PBGC’s liabilities increase due to the nature of long-term payment promises. PBGC invests 85% of its assets to hedge its risks and lessen the volatility of its surplus. Mr. Bone noted that PBGC’s surplus is driven primarily by premiums net of claims plus investment income on the surplus and that the premiums paid to PBGC are set by statute and would require Congressional action to change.
As there were no further questions, the Chair and the Board Members thanked Director Dhillon and all meeting participants and adjourned the meeting.
Executive Session
Secretary Lutnick, Luke Pettit, Joyce Meyer, Daniel Aronowitz and Janet Dhillon joined Secretary Chavez-DeRemer for an Executive Session.
AGENDA
MEETING OF THE BOARD OF DIRECTORS OF
THE PENSION BENEFIT GUARANTY CORPORATION (PBGC)
Thursday, February 2, 2026
10:00 a.m.
- Introduction
- General Counsel Legal Report
- Investment Policy Review
- Office of Inspector General (OIG) Update
- Executive Session