GAO Press Statement
July 23, 2003

The U.S. General Accounting Office (GAO) today designated the Pension
Benefit Guaranty Corporation's (PBGC) single employer pension insurance
program as "high risk," adding it to the list of major federal programs
that need urgent attention and transformation to ensure that our
national government functions in the most economical, efficient, and
effective manner possible.  Programs, functions, or activities receiving
a high-risk designation receive more comprehensive oversight from GAO,
and their progress is assessed in regular biennial reports
(http://www.gao.gov/pas/2003/d03119.pdf).

Today's announcement came from Comptroller General of the United States
David M. Walker, head of the GAO.  According to Comptroller General
Walker, "The PBGC single insurance program has a significant accumulated
deficit and faces additional potential losses due to a variety of
factors, including certain weaknesses in the current minimum funding
rules and insurance provisions.  In addition, the PBGC has significant
exposure in industries that are affected by increasing global
competition and the move from an industrial to a knowledge-based
economy."

See attached document for more information --
http://www.gao.gov/cgi-bin/getrpt?GAO-03-1050sp

If you have questions, contact GAO's Office of Public Affairs,
202-512-4800, or Barbara Bovbjerg, director for education, workforce,
and income security issues, 202-512-5491.

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