| Test Your Human Resources Knowledge | ||
|
| Labor Law Journal Submissions | ||
|
| Labor Arbitrators' Awards and Biographies | ||
5500 Preparer's Manual for 2012 Plan Years
The premier resource in the field of Form 5500 preparation, 5500 Preparer's Manual will help you handle the required annual Form 5500 filings for both pension benefits and welfare benefit plans.
Sen. Chuck Grassley (R-IA), chairman of the Committee on Finance, and Sen. Max Baucus (D-MT), ranking member, have asked the Government Accountability Office (GAO) to review whether the Pension Benefit Guaranty Corporation (PBGC) has adequate resources and is properly structured to handle the largest demands on services in its history. The Senators asked for preliminary findings before the Senate confirms a PBGC executive director for the first time next year. Under the Pension Protection Act of 2006 (P.L. 109-280), both the Senate Finance Committee and the Senate Health, Education, Labor and Pensions Committee are required to consider the nomination of future PBGC executive directors and recommend nominees for full Senate consideration.
In an October 2, 2006, letter to the GAO Comptroller General, Grassley and Baucus noted that the PBGC is facing the largest administrative challenge in its history. More than 80% of all claims against the PBGC have come since 2000. The benefits paid by PBGC grew from 243,000 participants receiving $900 million in benefits in 2000 to 698,000 participants receiving $3.7 billion in benefits in 2005. Another 489,000 participants in plans already trusteed by PBGC will receive benefits when they become eligible. Assets in pension plans trusteed by PBGC – and thus to be invested by PBGC – increased from about $21 billion in 2000 to over $56 billion in 2005. “This rapid an increase in participants, benefit payments and investments would be a challenge to any organization,” the letter said. “We are particularly concerned in how PBGC is handling this challenge and whether legislative changes are needed in PBGC’s structure, appropriations, or law.”
Specifically, the key Senate leaders want the GAO to look at the following issues:
Does the PBGC have the most appropriate administrative structure (a private corporation headed by the Secretaries of Labor, Commerce and the Treasury)?
Would a structure more like the IRS or SEC provide a more neutral decision making process?
Can the PBGC attract the type of expert financial, actuarial and legal staff it needs or should its salary scale be similar to those of the other financial agencies and the SEC, with whom it is in competition for skilled staff?
Has the former Executive Director’s reorganization of the PBGC to break up its General Counsel’s Office helped the Agency provide better service?
How does the PBGC make contracting decisions for delivering benefit services to participants and for investing trusteed plan assets?
How has the PBGC’s move away from equities in its portfolio impacted the Agency’s financial health and likely ability to pay future benefits?
For more information on this and related topics, consult the CCH Pension Plan Guide.
Visit our News Library to read more news stories.
©2005-2024 CCH Incorporated or its affiliates
