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OPA News Release: [01/25/2005]
Contact Name:
Eryn Witcher
Phone Number: 202-693-4676
Release Number: 05-0121-NAT
Statement of Labor Secretary Elaine L. Chao
On GAO Report Regarding Pension Benefit Guaranty Corporation
WASHINGTON—Elaine L. Chao, U.S. Secretary of Labor
and Chairman of the Pension Benefit Guaranty Corporation (PBGC) Board, today
released the following statement about the Government Accountability Office's
decision to retain PBGC single employer insurance system on its “high-risk” list:
“The announcement from the Government Accountability Office (GAO) confirms
the need for reform of the nation's single-employer, defined benefit system
so that America 's workers can continue to have secure retirement futures.
Although the federal pension insurance system is not in imminent danger
of collapse, it is clear that the financial integrity of this system will
be compromised if nothing is done. GAO has highlighted for policymakers the
risks inherent in the current system.
“The Bush Administration's pension reform proposal will help ensure that
the promises made to 34 million workers covered by these plans are kept.
The proposed pension reform proposal will improve the financial integrity
of pension plans, reform the PBGC's premium structure to reflect real
risks and costs, and empower workers with more substantial and timely
information about the financial status of their pension plans. The Administration
strongly believes comprehensive reform of pension funding rules is needed.
A responsible reform package to shore up retirement security for workers
has been put forth and the time to act is now!”
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