Designated Representatives of the Board Members
Lisa M. Gomez, Assistant Secretary, Employee Benefits Security Administration (Designated Representative of Acting Secretary of Labor Julie A. Su)
Laurie Schaffer, Acting Assistant Secretary for Financial Institutions (Designated Representative of Secretary of the Treasury Janet L. Yellen)
Oliver Wise, Acting Under Secretary for Economic Affairs (Designated Representative of Secretary of Commerce Gina M. Raimondo)
Pension Benefit Guaranty Corporation
Ann Orr, Acting Director
Karen Morris, General Counsel and Secretary to the Board
Patricia Kelly, Chief Financial Officer
John Hanley, Chief of Negotiations and Restructuring
Alice Maroni, Chief Management Officer
David Foley, Chief of Benefits Administration
Michael Rae, Deputy Chief Policy Officer
Christopher Bone, Director, Policy, Research and Analysis Department
David Mudd, Chief Investment Officer, Corporate Investments Department
Luiza Walt, Director, Financial Operations Department (FOD)
Stephen Young, Deputy Director, FOD
Bruce Johnson, Supervisory Accountant, FOD
Brad Porter, Accountant, FOD
Stephen Leslie, Staff Accountant, FOD
Anthony Castoro, Staff Accountant, FOD
Lisa Carter, Director, Corporate Controls and Reviews Department
JR Wycinsky, Director, Communications, Outreach and Legislative Affairs Department
Scott Young, Director, Actuarial Services and Technology Department
Ross Marcelin, Director, Plan Compliance Department
Jim Donofrio, Chief Negotiating Actuary, Negotiations & Restructuring Actuarial Department
Nidia Yanez, Program Analyst, Communications Outreach & Legislative Affairs Department
Phyllis Gaskins, Management/Program Analyst, Quality Management Department
Sundae Knight, Executive Advisor, Office of the Director
PBGC Office of Inspector General
Nick Novak, Inspector General
Brooke Holmes, Deputy Inspector General
John Seger, Assistant Inspector General for Audits, Evaluations, and Inspections
Anna Oglesby, Federal Auditor
Tyson Lee, IT Specialist Auditor
Other Board Agency Staff
Nicole Swift, Division Chief, EBSA, Department of Labor (DOL)
Elizabeth Hipple, Chief of Staff, Office of the Assistant Secretary, EBSA, DOL
Janelle Leung-Tat, Employee Benefits Law Specialist, EBSA, DOL
Jong Ho Hwang, Senior Policy Advisor, Office of Financial Institutions Policy, Department of Treasury
Sam Marullo, Counselor to the Secretary, Department of Commerce
Julia Beckhusen, Senior Economist, U.S. Census Bureau
Ernst & Young
Angel Estrada, Managing Director, Assurance
Kimberly Hancy, Coordinating Partner
Derek Yost, Managing Director
Ashton Harris, Assurance Senior Manager
Morgan Boykin, Assurance Senior Manager
Josh Crown, Assurance Manager
The Board, through its representatives duly designated pursuant to section 4002.1(b) of the PBGC Bylaws (29 C.F.R. § 4002.1(b)), met on November 14, 2024. The Chair, Assistant Secretary of Labor Lisa M. Gomez, called the meeting to order. The Chair welcomed Laurie Schaffer, Acting Assistant Secretary for Financial Institutions for the Treasury Department and Oliver Wise, the Acting Under Secretary of Commerce for Economic Affairs.
The Chair thanked PBGC management and staff, highlighting the efforts of PBGC CFO Patricia Kelly and CFO Deputy Walt Luiza, and thanked Acting Director Orr for her continued leadership. The Chair extended her thanks to the Office of Inspector General and the independent auditors for their review of the Annual Report.
The Chair explained that the President’s Management Agenda requires agencies to close their financial books within 45 days of the end of the fiscal year (FY) and report their financial conditions to the President, Congress, and the Office of Management and Budget. Further, she noted the purpose of the meeting was to review and approve transmittal of the Corporation’s FY 2024 financial statements, annual performance report, independent auditors’ report, and other documentation in conformance with OMB Circulars A-11 and A-136, to the President, the Congress, and the Director of OMB by November 15, 2024. Additionally, the report is supplemented by the Chair’s message and the Director’s message.
The Chair noted that the PBGC Board will approve the PBGC FY 2024 Annual Report upon completion of the actuarial analysis required by ERISA Section 4008. Under the PBGC’s bylaws, actions taken by designated Board Representatives at a Board meeting are effective, provided they are ratified in writing by the Board Members. She noted that this meeting is treated as a meeting of the Board and minutes of the meeting will be circulated to the Board Members, whose approval thereof will constitute ratification of the acts of the Board Representatives.
Finally, the Chair explained that the Annual Report will not be released immediately but is subject to technical corrections agreed to by the Board Representatives, and upon receipt of Independent Auditor’s final report.
Acting Assistant Secretary Laurie Schaffer congratulated the agency on its 32nd unqualified opinion. The Acting Director thanked everyone for their support and dedication.
The Chair then recognized Inspector General (IG) Nick Novak and EY Coordinating Partner Kimberly Hancy. The IG and the Deputy IG reported that the FY 2024 financial statement audit is complete and expressed appreciation to the Ernst & Young (EY) team for their outstanding work. The Deputy IG thanked Ms. Hancy and EY Managing Director Angel Estrada. She noted that this was EY’s 5th consecutive year of auditing PBGC’s financial statements and FISMA audits and thanked the whole EY team for their professionalism and objectivity.
The Deputy IG thanked PBGC for working cooperatively with EY in response to several hundred requests for information. She conveyed special thanks to the CFO’s office for ensuring that the agency provided timely responses to EY’s requests, while protecting retirement security for millions of Americans. The Deputy IG reported that EY issued an unmodified audit opinion on the PBGC FY2024 financial statements, PBGC had no significant internal control deficiencies and resolved many audit recommendations.
Ms. Hancy echoed the thanks from the IG’s office for the tremendous cooperation from all levels at PBGC. Upon completion of EY’s final procedures, she expects the agency will receive an unmodified opinion on both PBGC’s financial statements and its internal controls over financial reporting. EY will issue a separate report with supplementary information as required by Department of Treasury guidance. Consistent with EY’s audit plan, the audit focused on testing balances and activities and controls over those amounts for key entity processes including investments and investment income, premiums, liabilities associated with the single and multiemployer programs, revenues and expenses of the Special Financial Assistance program and overall financial reporting.
She further reported that: the auditors did not identify any events or conditions that raised substantial doubt of PBGC’s ability to continue as a going concern over the next year; PBGC’s accounting policies were consistent with U.S. GAAP, PBGC management did not change any significant accounting policies during the current year. The auditors did not identify any significant unusual transactions and or any material corrected or uncorrected misstatements in amounts or disclosures. She further reported that the auditors were not aware of any fraud or noncompliance with laws or regulations or any matter that would impair the independence of the audit. EY expects to issue final reports tomorrow upon receipt of the management representation letter.
The Acting Under Secretary thanked the auditors and the PBGC team and congratulated them on an excellent report.
The Chair requested a motion to approve, absent any material changes, transmittal of the Corporation’s FY 2024 financial statements, annual performance report, independent auditors’ report, and other documentation in conformance with OMB Circulars A-11 and A-136, supplemented by the Chair’s message and the Director’s message, to the President, the Congress, and OMB by November 15, 2024. The motion was made, and upon being seconded, passed. The meeting was then adjourned.
AGENDA
MEETING OF THE BOARD REPRESENTATIVES
OF THE PENSION BENEFIT GUARANTY CORPORATION (PBGC)
Thursday, November 14, 2024
11:00 a.m. – 11:30 a.m.
- Introduction
- Discussion of Annual Report
- Motion to Approve Report
- Conclusion