(Dollars in Millions) |
|
|
FY 2000 |
FY 2001 |
Change |
Single Employer Program Benefit Pmts. |
963.4 |
987.6 |
24.2 |
Multi-Employer Program Financial Asst. |
94.3 |
6.3 |
-88.0 |
Administrative Expenses |
11.1 |
11.9 |
0.8 |
Services related to terminations |
153.6 |
164.8 |
11.2 |
Total, Budget Authority |
$1,222.4 |
$1,170.6 |
$-51.8 |
Full Time Equivalents |
754 |
754 |
0 |
The Pension Benefit Guaranty Corporation (PBGC) is a wholly-owned
Government Corporation, guided by a board of directors chaired by the Secretary
of Labor, which guarantees the payments of pension plan benefits to
participants in the event that covered plans fail or go out of existence.
Single Employer Program Benefit
Payments Monthly pension payments are made to plan participants
and other beneficiaries of plans which have been trusteed by PBGC. Payments are
expected to increase in FY 2001 due to projected increases in trusteed plans
and the number of participants in pay status.
Multi-Employer Program Financial
Assistance Financial assistance provides for repayable loans to
insolvent multi-employer sponsored plans to enable these plans to continue
paying benefits if a series of prescribed steps is taken to place the plan on a
sound financial basis. Payments are expected to decrease in FY 2001 by $88
million largely because of the disproportionate budgetary impact in FY 2000 of
a lump sum settlement of the liability for one major multi-employer plan.
Administrative Expenses These administrative
expenses, subject to limitation by appropriation, provide for: collection of
almost $1 billion in premiums; accounting and auditing services; asset
management; executive direction; and other support functions. This activity
includes an increase for enhancements to PBGC's information technology
infrastructure, including necessary replacements and additions to network
engineering hardware, and strengthened computer security.
Services Related to Terminations The services
related to terminations provides for costs attributable to trusteed pension
plans and benefit payment service. The FY 2001 PBGC budget request provides for
a significant improvement in the timeliness of frontline services to
participants by reducing processing time for final benefit determinations from
5.7 years in FY 1999 to 3-4 years. The Corporation proposes an increase of $1.5
million to allow earlier actuarial valuations (which directly support final
benefit determinations) as well as $1.2 million to accelerate implementation of
a new actuarial software package that will facilitate future benefit
determinations.
PBGC also proposes an increase of $2.8 million to continue the current
level of active management of its growing investment portfolio. The
Corporation's investment strategy has in recent years helped transform PBGC's
actuarial deficit into a surplus. This proposal will allow for continued
matching of industry performance indices at a cost substantially lower than the
industry average.
|
|
FY 2000 |
FY 2001 |
Change |
Plans Terminated: Insufficient Assets |
110 |
110 |
0 |
Participants in Govern. Trusteeships |
572,000 |
612,000 |
40,000 |
Government Trusteeships at EOY |
2,847 |
2,957 |
110 |
|