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OPA News Release: [07/23/2003]
Contact Name: Ed
Frank
Phone Number: (202) 693-4676
Statement of Labor Secretary Elaine L. Chao on GAO
Action Regarding Pension Benefit Guaranty Corporation
WASHINGTON—Elaine L. Chao, U.S. Secretary of Labor and Chair
of the Pension Benefit Guaranty Corporation (PBGC) Board, today released the
following statement about the General Accounting Office’s decision to
place PBGC single employer insurance system on its “high-risk”
list:
“The General Accounting Office’s announcement confirms the
points that Administration officials have made while presenting our pension
proposals to Congress—that the financial integrity of the single-employer
defined benefit pension guaranty system is, unfortunately, at risk. Although
the system can meet its obligations in the near term, it is clear that
comprehensive reform of our pension funding rules is needed to strengthen the
financial health of the defined benefit pension system that millions of
American workers rely upon.
“The Bush Administration strongly believes that the first step
toward responsible reform of pension funding rules is to improve the accuracy
and transparency of pension information. We have made specific recommendations
to more accurately value pension liabilities, increase disclosure, and to
restrict unfunded benefit increases in plans at high risk of termination.
“We will continue to urge immediate enactment of those reforms. But
this is just a first step. The Administration will be working with Congress to
develop a broad package of comprehensive reforms that will strengthen the
defined benefit system. The GAO report supports the Administration’s call
for action. We must act together to protect the pensions of America’s
workers and retirees.”
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