In an audit of a terminated multiemployer plan, we concluded that PBGC could assist the Plan in better protecting the assets to reduce PBGC's future financial assistance for this plan. The assets of the Plan, a recently terminated multiemployer plan, are being depleted in a manner that could cost the PBGC millions of dollars.
PBGC has at least two options to assist the Plan in better protecting the assets and reduce PBGC's future liability
- Develop a program to more closely monitor the expenses of terminated but not yet insolvent plans. This option would require collaboration with the Employee Benefits Security Administration (EBSA) of the Department of Labor.
- Another option is for PBGC to fund the Plan's close-out soon or when the Plan is insolvent and avoid future administrative expenses. This would result in significant savings in PBGC's future financial assistance. However, there are some obstacles to this.
We made four (4) recommendations as a result of our work, and PBGC has already taken certain actions in response to the report.
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