[United States Government Manual]
[June 01, 2006]
[Pages 499-502]
[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; 800-400-7242. 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                                Vince K. Snowbarger, 
                                                          Acting
Office of Risk Assessment                         Justen Carter, Acting
Chief Technology Officer                          Rick Hartt
Chief Administrative Officer                      Stephen E. Barber
    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, Strategic Planning and              Wilmer Graham
          Evaluation Department
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Chief Operating Officer                           William Hulteng, 
                                                          Acting
    Director, Benefits Administration             Bennie L. Hagans
            and Payment Department
    Director, Insurance Program                   Terrence M. Deneen
            Department
Chief Financial Officer                           James Gerber
    Director, Contracts and Controls              Martin Boehm
            Review Department
    Director, Financial Operations                Theodore J. Winter, 
            Department                                    Jr.
General Counsel                                   Judith Starr
Deputy Executive Director, Office of Policy and   Vincent K. Snowbarger
        External Affairs
    Director, Communications and Public           Randy Clerihue
            Affairs Department
    Director, Legislative and Regulatory          John Hanley
            Department
    Director, Policy, Research, and               Dave Gustafson, Acting
            Analysis Department
Inspector General                                 Robert L. Emmons

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The Pension Benefit Guaranty Corporation protects the pension benefits 
of more than 44 million Americans who participate in defined-benefit 
pension plans sponsored by private-sector employees.

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 investment issues.

Activities

Coverage  The Corporation insures most private-sector defined benefit 
pension plans, which 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 44 million 
workers and retirees participate in more than 30,300 covered plans.
Single-Employer Insurance  Under the single-employer program, the 
Corporation guarantees payment of basic 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 $3,971.59 per month for a 65-year-old 
individual in a pension plan that terminates in 2006. The law also sets 
other restrictions on PBGC's gaurantee, including limits on the insured 
amount of recent benefit increases. In certain cases, 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 sponsor may terminate a single-employer plan in a standard 
termination if the plan has sufficient assets to purchase private 
annuities to cover all benefit liabilities. If a plan does not have 
sufficient assets, the sponsor may seek to transfer the pension 
liabilities to the PBGC by demonstrating that it meets the legal 
criteria for a distress termination. 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

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benefit liabilities may terminate in a standard termination. The 
Corporation also may institute termination of underfunded plans in 
certain specified circumstances.
Multiemployer Insurance  Under title IV, as 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 provides financial assistance to multiemployer 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 $8 for plan years beginning after September 26, 1988. 
The basic premium for all single-employer plans is $30 per participant 
per year. Underfunded single-employer plans must also pay an additional 
premium equal to $9 per $1,000 of unfunded vested benefits. A 
termination premium of $1,250 per participant per year applies to 
certain distress and involuntary plan terminations occurring on or after 
January 1, 2006, payable for 3 years after the termination.

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 800-400-7242. Internet, www.pbgc.gov.

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[GRAPHIC] [TIFF OMITTED] T206692.056




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