PBGC Company Profile Essay Example for Free

PBGC Company Profile canvassPBGC is an abbreviation of a Pension Benefit Guaranty Corporation. The purpose of this national smoke is to protect Americans subvention. Its mission is related to protection Forty four million American workers retirement income is soon creation protected in more than 30000 gain ground pension plans of private single-employer and multiemployer. Its formation is the result of an acquit of 1974 by the name Employee Retirement Income Security Act. It has the following objectives First It helps private-sector define gather pension plans to be continued and remain well maintained. Second is to propose pension benefits payment time to time, without any interruption. Its ternion objective is to keep minimum pension insurance bountifulnesss. The defined benefit pension plan gives pension on a monthly basis to the retirees but the pension amount is depended upon the salary and the year of run the retirees have rendered. The corporation does not on ly give monthly payments to retirees up to the guaranteed maximum but overly the multiemployer plans participants and one who have not retired yet get financial assistance from it. General Tax Revenues usurpt give any kind of fund to this corporation.Insurance premiums financed the operations of this federal corporation which was being set by Congress. Insurance premium is being paid by the sponsors defined for each benefit plan that ar basically employers. The recoveries are being do from the companies which would be responsible for the plans in the past. dough come from investments for this corporation. According to the plan ended in 2008, workers testament get $4,312. 50 monthly when they will get retire at the age of 65. It serves the range of nodes e. g. general public, media and so on. venire of directors including the Secretaries of Labor (Chair), Commerce and the Treasury guided the operations of PBGC. The two highest priorities of this administration is to reform the defined benefit pension system and bring melioratement in retirement security. It contributed in the development of Pension tribute Act of 2006. Since PBGC has worked over the last 33 years for the protection plan of participants delights and withal to support private pension systems growth millions of American workers can now bet about secured retirement along with their families.Both the benefit plan and the guarantee by PBGC have made a difference in the lives of the diligent Americans. Annually about $4 million is being assumption by this corporation to 44 million Americans. The development of the 2006 fare not only improved the condition of funding of many defined benefit plans but besides pension system is being strengthened. warlike advantage The corporation has been very effective throughout in managing change over the past a few(prenominal) years, pension insurance programs have faced many unexpected challenges.The corporation also won an purity of managing its work force superbly in this changing business environment. The executive director said We are pleased to be recognized for having the right people, processes and systems in place to manage a doubling of our customer base with no diminution in the quality of our customer service. (www. pbgc. gov,2008). It was being a first federal path which got the full certification for its executive evaluation system. It got plenty of awards presented in magazines.These are as beneath General Excellence, Service, Competitive Advantage, Global Outlook, Innovation, Managing Change, Financial Impact, Partnership, Ethical Practice and Vision. Weaknesses of PBGC Weaknesses of PBGCs certification and accreditation (CA) This would impact the true statement and completion of info which would affect the credibility of the corporation. It also affects the capability of the corporation to take and manage risks. It compromises agencys personnel department and assets too.There should be an effective CA system to assure security of assets, personnel and operations and that could assure that the corporation is capable enough to meet its functional requirements. The National Institute of Standards and engineering science Special Publication 800-37, Accreditation of Federal Information Systems and Guide for the Security Certification provides the framework chthonian 2002 act named as the Federal Information Security Management Act, Public Law 107-347, for how CA program of this corporation should be implemented.Inadequate security policy and plan The security policy and plan of the current information of PBGC are not according to the guidance provided by National Institute of Standards and Technology Special (NIST) under Federal Information Security Management Act. NIST has developed guidance and standards. It also includes minimum requirement to provide sufficient security of information for all agency assets and operations Change in organizational twist In 2006 the reorganization of the OIT i. e. ffice of information technology had badly affected the Information System Security military officers ability to ensure appropriate operational security for PBGCs information system. It affected the pellucidness for officer in terms of his responsibilities and accountability. It made it hard for the officer to strand security standards and procedures. Internal swan weaknesses High risk is being involved in the PBGCs single-employer pension insurance program. The program had an store deficit of $5. 4 cardinal in 2003 which was the largest one in history of the corporation.Under funding also increased dramatically in private pension system. The deficit was due to the following reasons bankrupt heartys under funded pension plans were ceased, there was a drawback in funding rules, stock market and interest rates decline, companies went global and economy is turned into knowledge based economy. The company had taken steps to improve the internal control for premiu ms. This is being done for two reasons. First Safeguard of assets controls must be establish to ensure that cost and obligation are according to the law applicable and assets are safeguarded against any discharge or related factors.Second reason is Financial Reporting it is to ensure that proper reporting is being done of all the revenues and expenditures so that documentation and reports can be made and are accurate. Data fictional character Weaknesses Incorrect data entry, adjustments, and system-generated balances generate errors. Because of the data quality issue, the corporation is unable to ensure the accuracy and completeness of premium data by utilizing Past Due Filing Notices and Statements of Account.The 1st one used to notify plans which had not yet submitted premium filings and 2nd one is used to ensure that underpaid/overpaid premiums from a plan sponsor could be sort out effectively. During auditing it was being noticed that these two tools are not being used punctu al as it requires significant resources before mailing. Due to this, premiums could not be collected and errors could not be detected. additionally policies and procedures have not been documented, communicated, or implemented throughout PBGC which is related to the premium accounting cycle. www. pbgc. gov,2008).Business schema The new investment strategy is being formulated to balance risk and return and to improve chances of scope full funding over the long run. According to this strategy diversified set of fixed-income investments and diversified paleness investments both will be attached 45% of its assets each and 10% will be given to alternative investment. Financial Information A deficit of $18. 1 billion was being posted by insurance program for single-employer pension plans in fiscal year 2006.Due to the airline relief pabulum in the Pension Protection Act, the corporation managed to reduce its probable liabilities. This led to a $4. 7 billion net improvement. It annou nces maximum insurance benefit for 2009. The amount would be higher for those who retire later and bench vise versa. The corporation had a peak year in 2000 when they had a surplus of $10 billion almost which was followed by surplus of $8 billion in 2001. The corporation got the calls in order to stop charging premiums. It got round $9 billion claims in 2002. The claims were because of airline and steel industry. (www. soa. org, n. d. ).