U.S. Department of Labor
Julie A. Su, Acting Secretary of Labor and Chair, PBGC Board of Directors
Lisa M. Gomez, Assistant Secretary, Employee Benefits Security Administration (EBSA)
Ali Khawar, Principal Deputy Assistant Secretary, EBSA
Nicole Swift, Division Chief, EBSA
Sonja Hoover – Executive Assistant to the Secretary of Labor, Office of the Secretary
Janelle Leung-Tat, Employee Benefits Law Specialist, EBSA
U.S. Department of the Treasury
Janet L. Yellen, Secretary of the Treasury
Felton Booker, Deputy Assistant Secretary, Financial Institutions Policy
Eric Van Nostrand, Acting Assistant Secretary for Economic Policy
W. Moses Kim, Director, Office of Financial Institutions Policy
Carol Weiser, Benefits Tax Counsel
Jong Ho Hwang, Senior Policy Advisor, Office of Financial Institutions Policy
U.S. Department of Commerce
Don Graves, Deputy Secretary of Commerce
Jed Kolko, Undersecretary of Commerce for Economic Affairs
Andrew Kuritzkes, Senior Advisor to the Secretary
Sam Marullo, Senior Policy Advisor to the Secretary
Julia Beckhusen, Senior Economist, U.S. Census Bureau
Pension Benefit Guaranty Corporation
Gordon Hartogensis, Director, Pension Benefit Guaranty Corporation
Karen L. Morris, General Counsel and Secretary to the Board
Kristin Chapman, Chief of Staff
Ann Orr, Chief Policy Officer
John Greenberg, title
John Hanley, Acting Chief of Negotiations and Restructuring
Robert Scherer, Chief Information Officer
David Foley, Chief of Benefits Administration
Alice Maroni, Chief Management Officer
Michael Rae, Deputy Chief Policy Officer
Ted Goldman, Director, Policy, Research and Analysis Department (PRAD)
PBGC Office of Inspector General
Nick Novak, Inspector General
Brooke Holmes, Deputy Inspector General
PBGC Office of the Participant and Plan Sponsor Advocate
Camille Castro, Senior Associate Participant and Plan Sponsor Advocate
Emily Spreiser, Associate Participant and Plan Sponsor Advocate
The Chair called the virtual meeting to order and welcomed the attendees. The Chair provided an introduction, welcomed attendees, outlined the agenda, and noted that the report from the PBGC Plan Sponsor and Participant Advocate would be deferred until the next meeting due to her unavailability. The Chair also expressed interest in receiving an update on the Smaller Asset Manager Program at a future meeting.
The Chair asked for approval of the minutes from the December 5, 2022, meeting. The Board approved the meeting minutes by voice vote. Secretary Yellen and Deputy Secretary Graves thanked the Chair. The Chair recognized PBGC Director Gordon Hartogensis.
Director Hartogensis welcomed the Chair and thanked the Board and staff. He highlighted the agency’s high ranking in the 2022 Federal Employee Viewpoint Survey. The Director discussed the agency’s focus on the Special Financial Assistance (SFA) program, noting the number of applications approved and the amounts distributed to plans. He provided an update on PBGC’s investment performance and expressed appreciation for the SFA program and its positive impact on the multiemployer insurance program. The Chair recognized Secretary Yellen who congratulated the Director for the FEVS rankings and PBGC’s work on the SFA program. Deputy Secretary Graves credited the Director’s effective leadership and fiscal management. The Chair and the Director discussed pending matters.
The Chair recognized PBGC Policy Research and Analysis Department (PRAD) Director Ted Goldman, who summarized the PBGC’s FY2022 Projections Report, providing highlights of the positive net present value position of each program. The Chair thanked the PRAD Director for his report and discussed aspects of his modeling approach, including methods for stress testing the results. Secretary Yellen commended the thorough analysis of the report. Deputy Secretary Graves and the PRAD Director discussed the impact of nonmarket events, pension risk transfers, and long-term liabilities on the financial results. The Board approved release of the report by voice vote.
John Hanley, Chief of Negotiations & Restructuring (CNR), then provided an update on PBGC’s review of applications under the SFA program and the expected number of new plans to apply. The CNR reported on status of SFA applications, the total amount paid, the number of applications under review, and updated filing instructions. He noted that in response to an OIG finding, since May 15, 2023, PBGC has requested census data on terminated vested participants from current and new SFA applicants. PBGC reviews that data and works with applicant plans to adjust SFA amounts if necessary. The Chair and the CNR discussed the agency’s efforts to streamline its review of applications and expectations to complete review of all applications by the statutory deadline. Secretary Yellen and Deputy Secretary Graves thanked the CNR for the great progress in reviewing SFA applications.
The Chair recognized PBGC Inspector General Nick Novak. The Inspector General (IG) introduced Deputy Brooke Holmes. The IG began by reading a required communication from Ernst & Young (EY), the IG’s financial statement auditor, regarding EY’s inquiries, its independence, the scope and timing of its audit, and its identification of significant risks. The IG highlighted his office’s work reviewing aspects of the PBGC’s SFA program, including a report on PBGC’s procedures for reviewing SFA applications, and a report on PBGC’s consideration of information about deceased terminated vested participants in plan census data. The IG noted his office’s concerns about other categories of participants in plans applying for SFA.
The Board thanked the IG for his report and his continued work to address areas of risk with the Director and the PBGC.
As there were no further questions, the Chair and the Board Members thanked Director Hartogensis and adjourned the meeting.
AGENDA
MEETING OF THE BOARD OF DIRECTORS OF
THE PENSION BENEFIT GUARANTY CORPORATION (PBGC)
Friday, July 28, 2023
3:00 – 4:00 p.m.
- Introduction by Acting Secretary Su and Approval of the December 5 Board meeting minutes
- Director’s Report
- Projection’s Report Briefing and Approval
- Presentation by the Participant and Plan Sponsor Advocate
- Special Financial Assistance Update
- OIG Update