PBGC - Office of Inspector General

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Audit of PBGC’s Review of Initial Special Financial Assistance Applications (AUD-2023-11), issued June 30, 2023

We assessed whether PBGC adequately reviewed applications for Special Financial Assistance (SFA) prior to approving them. For the three applications we reviewed, we found that PBGC had many procedures in place to review SFA applications, including eligibility checks, completeness checks, actuarial and business assumption reviews, actuarial calculation reviews, legal reviews of plan amendments, and reviews by upper management. Upon examining application files in PBGC’s TeamConnect system, we verified all three plans in our sample submitted documentation required by PBGC. We also verified PBGC performed its eligibility checks, completeness checks, and legal reviews of plan amendments, and documented these steps in the concurrence packages. Finally, we confirmed that each of the three plans was eligible for SFA. However, we found the following areas for PBGC to improve in its review of SFA applications. First, PBGC should better document its analysis of potential application issues and management concurrence regarding the resolution of those issues to better ensure management oversight. Second, to improve PBGC’s ability to detect discrepancies in plan calculations for suspended benefits and a plan’s reported Contribution Base Unit (CBU) history, the Corporation should develop and implement additional controls to assess plan calculations for previously suspended benefits and a plan’s reported CBU history.

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Pension Benefits Guarantee Corporation
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