CCH® PENSION — 08/20/09

Senate bill would revamp governing structure of PBGC

Sen. Herb Kohl (D-WI), chairman of the Senate Special Committee on Aging, has introduced legislation that seeks to strengthen the governance and oversight structure of the PBGC. The PBGC Governance and Improvement Bill (S. 1544) was introduced on July 30, 2009, and was co-sponsored by Senators Michael Bennet (D-CO), Claire McCaskill (D-MO), and Russ Feingold (D-WI).

The bill would:

• Expand the PBCG Board of Directors from three to seven members and stagger board terms;
• Require the Board to meet at least four times a year;
• Require the PBGC advisory committee to meet with the Board at least once a year and provide the advisory committee with the authority to examine and advise on issues independent from the director;
• Give the Inspector General and General Counsel direct access to the PBGC Board; and
• Prohibit the PBGC Board of Directors and Director from directly serving on procurement technical evaluation panels and disqualify them from participating in any matter that may have or appear to have a conflict of interest.

"Decisions made by PBGC management and a lack of oversight and governance by previous PBGC Boards have contributed to the agency's financial situation," Kohl said in a press statement. "The GAO has indicated for years that the PBGC Board members do not have enough time or resources to provide the necessary policy direction and oversight," he added. "The role of PBGC is too crucial to allow its governance to slip through the cracks."

Source: Senate Special Committee on Aging, press release, July 30, 2009.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

Visit our News Library to read more news stories.