PBGC appreciates OIG’s conclusion reached in their closure memo of September 27, 2023, that Special Financial Assistance (SFA) funds were not improperly paid to plans, were not paid to deceased participants or beneficiaries, and should not be subject to recovery actions.
OIG’s June 12, 2023, White Paper, “Searching Plan Records for Deceased Participants,” highlighted limitations on the accuracy of commercial vendors' death audits. In response, PBGC promptly revised the application review process to require an independent death audit for all pending and prospective SFA applications. PBGC has worked with the OIG to resolve the OIG’s latest recommendation to further improve that process and the agency will implement this change, effective November 1, 2023.
As it has previously, PBGC continues to collaborate with the OIG to improve data collection and accuracy and ensure sound program management of the Special Financial Assistance Program.
About PBGC
PBGC protects the retirement security of over 33 million American workers, retirees, and beneficiaries in both single-employer and multiemployer private sector pension plans. The agency’s two insurance programs are legally separate and operationally and financially independent. PBGC is directly responsible for the benefits of more than 1.5 million participants and beneficiaries in failed single-employer pension plans. The Single-Employer Program is financed by insurance premiums, investment income, and assets and recoveries from failed single-employer plans. The Multiemployer Program is financed by insurance premiums. Special financial assistance for financially troubled multiemployer plans is financed by general taxpayer monies.