Long-term structural and legal framework issues have left the Pension Benefit Guaranty Corp. with a significant long-term deficit.[@@]
Federal Comptroller General David Walker gave that assessment Thursday, testifying at a hearing of the U.S. House Budget Committee. He said “comprehensive reform is required to ensure that workers and retirees receive the benefits promised to them.”
Among the reforms the head of the U.S. Government Accountability Office suggested were:
- Revising current funding rules to create incentives for plan sponsors to adequately finance promised benefits.
- Stopping underfunded plans from paying lump sums and granting benefit increases.
- Making plan information easier for stakeholders to get without drowning sponsors in paperwork.
PBGC insurance backs pension benefits for 34 million workers and retirees in more than 29,000 single-employer defined benefit plans.