Controlling Losses of the Pension Benefit Guaranty Corporation
Abstract
The federal government's exposure to losses from its insurance programs is large and growing. Several features of these programs make it difficult to keep their financial costs under control; in particular, their complexity and their budgetary treatment may obscure losses until they are unavoidable. Federal pension insurance, administered by the Pension Benefit Guaranty Corporation (PBGC), is one such program: current budget data do not provide enough information to understand and assess its financial performance. In addition, the program has accumulated a deficit that is likely to increase unless the Congress tightens the terms of the insurance and improves the government's ability to respond to indications of financial imbalance in the pension insurance system. At the request of the House Committee on Ways and Means, Subcommittee on Oversight, the Congressional Budget Office (CBO) prepared this study of federal pension insurance. The study examines the causes of PBGC's losses and offers several options for reforming the program. In keeping with CBO's mandate to provide nonpartisan analysis, the report contains no recommendations.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 1993
- Accession Number
- ADA275091
Entities
Organizations
- Congressional Budget Office