**GAO-08-1162T**                      Published: Sep 24, 2008. Publicly Released: Sep 24, 2008.                  

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## Highlights

The Pension Benefit Guaranty Corporation (PBGC) insures the retirement future of nearly 44 million people in more than 30,000 private-sector defined benefit pension plans. In July 2003, GAO designated PBGC's single-employer pension insurance program--its largest insurance program--as "high risk," including it on GAO's list of major programs that need urgent attention and transformation. The program remains on the list today with a projected financial deficit of just over $13 billion, as of September 2007. Because Congress exercises oversight of PBGC, GAO was asked to testify today on 1) the critical role PBGC plays in protecting the pension benefits of workers and how PBGC is funded, 2) the financial challenges facing PBGC, and 3) the PBGC's governance, oversight and management challenges. To address these objectives, we are relying on our reports from the last several years that, as part of our designation of PBGC's single-employer program as high-risk, explored the financial and management challenges facing the agency. GAO has made a number of recommendations and matters for Congressional consideration in these past reports. PBGC generally agreed with these past recommendations and is implementing many of them. No new recommendations are being made as part of this testimony.

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## Topics

Government Operations

AccountabilityAdministrative costsBudget deficitBudget obligationsBudget outlaysCost analysisDeficit reductionEmployeesFinancial analysisFinancial institutionsFinancial managementFinancial regulationFunds managementFuture budget projectionsInsuranceInsurance premiumsPension claimsPensionsPrivate sectorProgram managementRetirement benefitsRetirement incomeRevolving fundsRisk managementStrategic planningTrust funds