[United States Government Manual] [June 01, 2005] [Pages 503-505] [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. Internet, www.pbgc.gov. Board of Directors: Chairman (Secretary of Labor) Elaine L. Chao Members: (Secretary of the Treasury) John W. Snow (Secretary of Commerce) Carlos M. Gutierrez Officials: Executive Director Bradley D. Belt Office of Risk Assessment (vacancy) Chief Technology Officer Rick Hartt Chief Management Officer and Human Capital John Seal Officer Director, Budget Department Henry R. Thompson Director, Facilities and Services Patricia Davis Department Director, Human Resources Department Michele Pilipovich Director, Procurement Department Robert W. Herting Director, Process Change Consulting Wilmer Graham Group Chief Operating Officer Joseph H. Grant Director, Benefits Administration Bennie L. Hagans and Payment Department Director, Insurance Program Terry Deneen, Acting Department Chief Financial Officer Theodore J. Winter, Jr., Acting Director, Contracts and Controls Martin Boehm Review Department Director, Financial Operations Theodore J. Winter, Department Jr. General Counsel Phil Hertz, Acting Deputy Executive Director, Office of Policy and Vincent Snowbarger External Affairs Director, Communications and Public Randy Clerihue Affairs Department Director, Legislative and Regulatory Jim Armbruster, Acting Department Director, Policy, Research, and Dave Gustafson, Acting Analysis Department Inspector General Robert L. Emmons ------------------------------------------------------------------------ The Pension Benefit Guaranty Corporation guarantees payment of nonforfeitable pension benefits in covered private-sector-defined benefit pension plans. [[Page 504]] The Pension Benefit Guaranty Corporation (PBGC) 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 insuranceprograms separately covering single-employer and multiemployer plans. More than 44 million workers participate in more than 31,200 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 $3,801.14 per month, at age 65, for a plan terminating during 2005, and sets other restrictions on PBGC's guarantee. The Corporation may also pay some benefits above the guaranteed amount depending on the funding level of the plan and 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. 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 Access to the Pension Benefit Guaranty Corporation is available through the Internet at www.pbgc.gov. TTY/TDD users may call the Federal Relay Service toll free at 800- 877-8339 and ask to be connected to 202-326-4000. 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. Internet, www.pbgc.gov. 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