A PBGC audit of the four United Airlines pension plans taken over by the agency in 2005 “did not exercise due professional care in their work,” according to a review by PBGC Inspector General Rebecca Anne Batts.
Also, the Pension Benefit Guaranty Corp. did not “properly oversee the work and failed to identify or follow-up on errors and omissions in the work,” Ms. Batts wrote in a July 20 letter to Rep. George Miller, D-Calif.
In her letter, Ms. Batts also said the “issues surrounding the inadequate plan asset audits were so significant that additional, more detailed evaluation is warranted.”
Mr. Miller released the letter from Ms. Batts on Friday. In a separate letter sent Friday to PBGC Director Joshua Gotbaum, Mr. Miller said the asset audits are “crucial” because they are used to calculate the benefits of the participants in plans the agency takes over.
“I urge you to work with the (Office of Inspector General) to determine the scope and severity of the problem and to properly hold accountable any contractor (including suspension of such contractor) or employee who failed to execute their duties in the manner consistent with the requirements of the law,” Mr. Miller wrote in his letter to Mr. Gotbaum.
Jeffrey Speicher, a PBGC spokesman, said the agency had just received Mr. Miller’s letter and had no immediate comment.
When the PBGC took over the UAL plans, they were underfunded by $9.8 billion, and only $6.6 billion of that was guaranteed, according to an April 22, 2005, agency news release.