Westbank Louisiana News

U.S. Senator Bill Cassidy, M.D. (R-LA), ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, has expressed significant concerns to President Biden regarding the state of the Pension Benefit Guaranty Corporation (PBGC). The PBGC director position has been vacant since former Director Gordon Hartogensis left in April.

Under the current administration, PBGC has faced operational issues that have resulted in taxpayer losses and severe underfunding of pension plans. One notable instance involved a $127 million overpayment to the Central States Pension Fund due to inclusion of deceased participants in their bailout request. This error was attributed to PBGC's failure to implement recommended safeguards.

Senator Cassidy's oversight efforts led to the return of the $127 million by Central States and prompted a full census audit of 66 other pension plans that received bailouts. This audit has so far recovered an additional $8 million for taxpayers.

"As you consider potential nominees to fill this vacancy, I ask that you choose a nominee who both acknowledges PBGC’s historic shortcomings and has concrete plans to solve them in a manner unafflicted by partisan politics," wrote Dr. Cassidy.

He emphasized his willingness to collaborate with HELP Committee colleagues on legislative measures necessary for fixing PBGC and ensuring timely payments for America's pension beneficiaries. He stressed that the next director must possess experience in identifying internal problems at PBGC, courage for necessary actions even if unpopular, and bipartisan trust.

PBGC has also faced criticism for delays in providing technical assistance to financially troubled pension plans, exacerbating their financial difficulties and increasing costs for beneficiaries and taxpayers.

The letter from Senator Cassidy outlines these concerns in detail:

"Dear President Biden,

As Ranking Member of the Senate Committee on Health, Education, Labor, and Pensions (HELP), I write today to express my concerns with the direction of the Pensions Benefit Guaranty Corporation (PBGC) ..."

The letter further highlights issues such as operational inefficiencies during the rollout of Democrats' 2021 Special Financial Assistance bailout program under ARPA. It notes overpayments caused by inadequate rules implementation and calls for reforms within multi-employer pension systems.

Cassidy pointed out that resolving administrative delays is crucial as they lead to compounded financial problems costing more money eventually borne by plans, beneficiaries, and taxpayers.

He also noted upcoming challenges like premium reform for single-employer pension plans where collaboration between Congress and PBGC will be essential. The next director must gain bipartisan support to address these issues effectively.

"I am eager to work with my HELP Committee colleagues ... To do this, the next PBGC director must have ... bipartisan trust," continued Dr. Cassidy.

Historically confirmed on a bipartisan basis, future directors should maintain this tradition according to Cassidy who looks forward "to a public hearing before the HELP Committee."

For updates from HELP Republicans visit their website or Twitter @GOPHELP.