The GAO recommends that the PBGC provide reports on its management and financial challenges to newly appointed board members, board representatives and its director in advance of a potential leadership change following the November presidential election.
Charles E.F. Millard, executive director of the Pension Benefit Guaranty Corp., agreed to the recommendation and said the agency would continue to work in concert with its board to provide the oversight information necessary to address the important issues that we confront in providing pension security to millions of Americans, according to a comment letter included with the report.
The Government Accountability Office report, released Thursday, recommended that the PBGC give the reports to the Office of Inspector General and GAO. No time frame was given.
The report is a follow-up to a 2007 GAO report that recommended expanding the size of the PBGC board of directors; clearly defining the roles and responsibilities of board members, senior management and the director; and developing policies consistent with other government corporations.
Thursdays report noted that the PBGCs board of directors remained composed of three members, the secretaries of Treasury, Labor and Commerce. Because of the small size, the board has not been able to develop procedures and mechanisms to monitor the agencys operations, such as standing committees, which are used by other government corporations, the report said.
It also pointed out that the PBGC does not have the same reporting requirements that other government corporations have in regard to providing additional information to Congress. The GAO points to the Millennium Challenge Corp. and the Commodity Credit Corp., which are both required to notify Congress prior to conducting certain financial transactions. Millennium Challenge works with countries around the world to reduce global poverty through the promotion of sustainable economic growth, and Commodity Credit was created to stabilize, support and protect farm income and prices.