Summary

The Pension Benefit Guaranty Corporation's (PBGC) efforts to identify and collect delinquent (unpaid) premiums, interest, and penalties have fallen short. Attempts to collect delinquent premiums from large plans have been infrequent, and follow-up has been sporadic; PBGC does not try to identify or collect premiums from small plans. Until April 1992, PBGC had not sent bills for underpaid premiums, interest, and penalties to large or small plans for plan years after 1987. A breakdown in PBGC's computerized premium accounting system was a major factor in some of these problems. Further, PBGC normally does not use civil action to make collections. GAO recommends specific steps PBGC should take to improve premium collections.

GAO found that PBGC: (1) efforts to identify and collect delinquent premiums and underpaid premiums, interest, and penalties on premiums have been inadequate; (2) has infrequently issued and failed to follow up on past-due notices; (3) has not sent past-due notices to or collected delinquent premiums from plans with less than 50 participants; and (4) has not used civil action to collect delinquent premiums, interest, or penalties.