[United States Government Manual] [June 02, 1998] [Pages 652-655] [From the U.S. Government Publishing Office, www.gpo.gov]PENSION BENEFIT GUARANTY CORPORATION 1200 K Street NW., Washington, DC 20005 Phone, 202-326-4000; 800-400-4272 (toll-free). Internet, http:// www.pbgc.gov/. Board of Directors: Chairman (Secretary of Labor) Alexis M. Herman Members: (Secretary of the Treasury) Robert E. Rubin (Secretary of Commerce) William M. Daley Officials: Executive Director David M. Strauss Deputy Executive Director and Chief Negotiator Nell Hennessy Director, Corporate Finance and Andrea E. Schneider Negotiations Department Director, Participant and Employer Harriet D. Verburg Appeals Department Deputy Executive Director and Chief Operating Joseph H. Grant Officer General Counsel James J. Keightley [[Page 653]] Director, Corporate Policy and Stuart A. Sirkin Research Department Director, Insurance Operations Bennie L. Hagans Department Deputy Executive Director and Chief Financial N. Anthony Calhoun Officer Director, Contracts and Controls Dale Williams Review Department Director, Financial Operations Edward Knapp Department Director, Information Resources Cris Birch Management Department Deputy Executive Director and Chief Management John Seal Officer Director, Budget Department Henry R. Thompson Director, Facilities and Services Janet A. Smith Department Director, Human Resources Department Sharon Barbee-Fletcher Director, Procurement Department Robert W. Herting Assistant Executive Director for Legislative and Judy Schub Congressional Affairs Director, Communications and Public Affairs Judith Welles Department Inspector General Wayne Robert Poll ------------------------------------------------------------------------ The Pension Benefit Guaranty Corporation guarantees payment of nonforfeitable pension benefits in covered private-sector defined benefit pension plans. The Pension Benefit Guaranty Corporation is a self-financing, wholly owned Government corporation subject to the Government Corporation Control Act (31 U.S.C. 9101-9109). The Corporation, established by Title IV of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1301-1461), is governed by a Board of Directors consisting of the Secretaries of Labor, Commerce, and the Treasury. The Secretary of Labor is Chairman of the Board. A seven-member Advisory Committee, composed of two labor, two business, and three public members appointed by the President, advises the agency on various matters. Activities Coverage The Corporation insures most private-sector defined benefit pension plans that provide a pension benefit based on factors such as age, years of service, and salary. The Corporation administers two insurance programs separately covering single-employer and multiemployer plans. More than 42 million workers participate in approximately 50,000 covered plans. Single-Employer Insurance Under the single-employer program, the Corporation guarantees payment of certain pension benefits if an insured plan terminates without sufficient assets to pay those benefits. However, the law limits the total monthly benefit that the agency may guarantee for one individual to $2,880.68 per month, at age 65, for a plan terminating during 1998, and sets other restrictions on PBGC's guarantee. The Corporation may also pay some benefits above the guaranteed amount depending on amounts recovered from employers. A plan administrator may terminate a single-employer plan in a ``standard'' or ``distress'' termination if certain procedural and legal requirements are met. In either termination, the plan administrator must inform participants in writing at least 60 days prior to the date the administrator proposes to terminate the plan. Only a plan that has sufficient assets to pay all benefit liabilities may terminate in a standard termination. The Corporation also may institute termination proceedings in certain specified circumstances. [[Page 654]] [GRAPHIC] [TIFF OMITTED] T177653.062 [[Page 655]] Multiemployer Insurance Under title IV, as originally enacted, the Corporation guaranteed nonforfeitable benefits for multiemployer plans in a similar fashion as for single-employer plans. However, the multiemployer program was revised in 1980 by the Multiemployer Pension Plan Amendments Act (29 U.S.C. 1001 note) which changed the insurable event from plan termination to plan insolvency. The Corporation now provides financial assistance to plans that are unable to pay nonforfeitable benefits. The plans are obligated to repay such assistance. The act also made employers withdrawing from a plan liable to the plan for a portion of its unfunded vested benefits. Premium Collections All defined benefit pension plans insured by PBGC are required to pay premiums to the Corporation according to rates set by Congress. The annual premium per plan participant for multiemployer pension plans is $2.60 for plan years beginning after September 26, 1988. The basic premium for all single-employer plans is $19 per participant per year. Underfunded single-employer plans must also pay an additional premium equal to $9 per $1,000 of unfunded vested benefits. Sources of Information The Pension Benefit Guaranty Corporation provides information electronically through the Internet, at http://www.pbgc.gov/. For further information, contact the Pension Benefit Guaranty Corporation, 1200 K Street NW., Washington, DC 20005-4026. Phone, 202- 326-4000; or 800-400-4272 (toll-free). TTY/TDD users, call the Federal Relay Service toll-free at 800-877-8339 and ask to be connected to 202- 326-4000. ------------------------------------------------------------------------