Department of Labor
Alex Acosta, Secretary of Labor and Chair of the PBGC Board of Directors
Preston Rutledge, Assistant Secretary, Employee Benefits Security Administration
Jeanne Klinefelter Wilson, Deputy Assistant Secretary for Policy, Employee Benefits Security Administration
Tim Hauser, Deputy Assistant Secretary for Program Operations, Employee Benefits Security Administration
Nick Geale, Chief of Staff
Nicole Swift, Employee Benefits Law Specialist, Employee Benefits Security Administration
Department of the Treasury
Steven Mnuchin, Secretary of the Treasury
Christopher Campbell, Assistant Secretary for Financial Institutions
Philip Quinn, Senior Policy Analyst, Office of Financial Institutions Policy
Daniel Dorman, Senior Policy Advisor, Office of Financial Institutions
Department of Commerce
Wilbur Ross, Secretary of the Department of Commerce
Karen Dunn Kelley, Under Secretary for Economic Affairs
Rick Lattimer, Policy Analyst, Economics and Statistics Administration
Tom Reeder, Director
Judith Starr, General Counsel and Secretary to the Board
Patricia Kelly, Chief Financial Officer
Karen Morris, Chief, Negotiations and Restructuring
Bob Scherer, Chief Information Officer
Michael Rae, Deputy Chief Policy Officer
Nicole Puri, Chief Risk Officer
Joseph Grant, Senior Advisor
PBGC Office of Inspector General
Bob Westbrooks, Inspector General
Nick Novack, Deputy Inspector General
PBGC Office of the Participant and Plan Sponsor Advocate
Constance Donovan, Participant and Plan Sponsor Advocate
Camille Castro, Associate Participant and Plan Sponsor Advocate
The Chair called the meeting to order, welcoming the attendees. The meeting then proceeded in accordance with the established agenda (Attachment 1).
The Chair invited a motion to approve the minutes of the September 21, 2017 meeting. A motion was made, seconded, and approved. The Chair directed PBGC to post the approved minutes to the PBGC website.
Director Reeder reported to the Board on PBGC’s biggest challenge -- the financial instability of the multiemployer program. He described how the President’s budget proposal to reform multiemployer premiums, if enacted, would shore up PBGC’s multiemployer insurance program. Although the proposal will not prevent looming plan failures, systemic reforms could prevent future failures.
The Chair asked how enactment of the President’s budget proposal would impact PBGC’s date of insolvency. The Director responded that it would ensure solvency through the end of the 10-year budget window and more likely than not for 20 years.
Secretary Ross thanked the Director for his report, observing it was very clear and consistent with information previously received.
The Chair next recognized Inspector General Bob Westbrooks. The Inspector General reported that his office is working with PBGC management to identify the root cause of the fraud risk in paying deceased participants. He discussed management progress in addressing audit recommendations, noting management continues to give attention to corrective action and open recommendations continue to decline. The Inspector General advised the Board on management responses to cybersecurity risks and commended the agency for working collaboratively with his office in this area while respecting OIG independence. The Inspector General stressed that his office continues to make management aware of information technology and cyber risks and management continues to take action to address these concerns. In response to a question from the Chair, the Inspector General assured the Board that issues his office has identified to management are being addressed.
The Chair then recognized Participant and Plan Sponsor Advocate Constance Donovan. Ms. Donovan discussed the role of the Advocate and presented historical background on her office’s activities. She also discussed the recently released study of single-employer pension plan derisking her office commissioned.
There being no request for an executive session of the Board, the Chair adjourned the meeting.
MEETING OF THE BOARD OF DIRECTORS
OF THE PENSION BENEFIT GUARANTY CORPORATION (PBGC)
February 8, 2018
2:30 PM – 3:00 PM
- Introduction by Secretary Acosta
- Director’s Report
- OIG Update
- Participant and Plan Sponsor Advocate Update