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MINUTES OF THE BOARD OF DIRECTORS’ MEETING OF THE PENSION BENEFIT GUARANTY CORPORATION HELD NOVEMBER 14, 2019

Designated Representatives of the Board Members
Preston Rutledge, Assistant Secretary, Employee Benefits Security Administration, Department of Labor (Designated Representative of Secretary of Labor Eugene Scalia)
Bimal Patel, Assistant Secretary for Financial Institutions, Department of the Treasury (Designated Representative of Secretary of the Treasury Steven Mnuchin)
Thomas Gilman, Chief Financial Officer and Assistant Secretary of Commerce for Administration (CFO/ASA), Department of Commerce (Designated Representative of Secretary of Commerce Wilbur Ross)

PBGC
Gordon Hartogensis, Director
Kristin Chapman, Chief of Staff
Andrew Banducci, Chief Policy Officer
Judith Starr, General Counsel and Secretary to the Board
Patricia Kelly, Chief Financial Officer
David Foley, Chief Benefits Officer
Alice Maroni, Chief Management Officer
Michael Rae, Deputy Chief Policy Officer
Theodore Winter, Director, Financial Operations Department
Walter Luiza, Deputy Director, Financial Operations Department
Bruce Johnson, Financial Operations Department
Ted Goldman, Director, Policy Research and Analysis Department
Scott Young, Chief Actuary, Office of Benefits Administration
Martha Threatt, Director, Communications and Legislative Affairs Department
Tyler Hernandez, Senior Advisor

PBGC Office of Inspector General
Bob Westbrooks, Inspector General
Nick Novak, Deputy Inspector General

Other Board Agency Staff
Tim Cummings, Chief of Staff, Employee Benefits Security Administration, Department of Labor
Nicole Swift, Employee Benefits Law Specialist, Employee Benefits Security Administration, Department of Labor
Philip Quinn, Senior Financial Analyst, Office of Financial Institutions Policy, Department of the Treasury
Regina Powers, Economist, Office of the Under Secretary for Economic Affairs, Department of Commerce
Ken White, Policy Analyst, Office of the Under Secretary for Economic Affairs, Department of Commerce
Sam Miller, Assistant to the Chief Financial Officer and Assistant Secretary of Commerce, Department of Commerce

CliftonLarsonAllen (outside audit firm)
Marlon Perry, Principal
Jillian Manning, Director

The Board, through its representatives duly designated pursuant to section 4002.1(b) of the PBGC Bylaws, met on November 14, 2019. The Acting Chair, Assistant Secretary of Labor Preston Rutledge, called the meeting to order.

The Acting Chair thanked PBGC management and staff for all their hard work throughout the financial audit, especially Chief Financial Officer Patricia Kelly and Financial Operations Director Ted Winter. He also extended his thanks to the Office of Inspector General and the independent auditors. The Acting Chair explained that the purpose of the meeting was to review and approve transmittal of the Corporation’s fiscal year 2019 financial statements, annual performance report, independent auditors report, and other documentation in conformance with OMB Circulars A-11 and A-136, to the President, the Congress, and the Director of the Office of Management and Budget by November 18, 2019. Additionally, the report is supplemented by the Chair’s message and the Director’s message. He stated that the Board would approve the PBGC fiscal year 2019 Annual Report required by section 4008 of ERISA once the actuarial analysis required by that section is completed. The Acting Chair noted that, on approval, the report comprising these documents will not be immediately released but will be subject to technical corrections agreed to among the Board Representatives. The minutes of this meeting will be circulated to the Board Members with their approval thereof constituting ratification of the acts of the Board Representatives.

Director Gordon Hartogensis echoed the Acting Chair’s thanks to PBGC staff, the Office of Inspector General, and the independent auditors CliftonLarsonAllen (CLA). He reviewed the financial condition of the single-employer and multiemployer programs, noting that the dire financial condition of the multiemployer program is the most looming problem, which PBGC is working with Congress to solve.

The Acting Chair then recognized Inspector General Robert Westbrooks. The Inspector General observed that PBGC management continues to demonstrate high standards of stewardship and accountability. He further stated that he looks forward to working with PBGC Management to resolve the two significant deficiencies found by the auditors. The Inspector General then introduced Marlon Perry, CliftonLarsonAllen principal.

Mr. Perry remarked that this is the 27th consecutive year in which PBGC has received an unmodified opinion on the financial statements and the fourth consecutive year that it is receiving an unmodified opinion on internal controls. He expressed his view that management is doing an outstanding job in trying to mitigate deficiencies.

The Board Representatives congratulated PBGC on attaining the unmodified opinions. The Acting Chair then requested a motion to approve, absent any material changes, transmittal of the Corporation’s fiscal year 2019 financial statements, annual performance report, independent auditors report, and other documentation in conformance with OMB Circulars A-11 and A-136, supplemented by the Chair’s message and the Director’s message, to the President, the Congress, and the Office of Management and Budget by November 18. The motion was made, and upon being seconded, passed. The meeting then adjourned.

Last Updated: December 9, 2020