Old North News

Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) and Health, Employment, Labor, and Pensions Subcommittee Chairman Bob Good (R-VA) have expressed their disappointment with the Pension Benefit Guaranty Corporation (PBGC) for its lack of responsiveness in recovering $127 million in taxpayer money. In a letter addressed to PBGC Director Gordon Hartogensis, Foxx and Good emphasized their concern over PBGC's failure to rectify the situation where taxpayer funds were sent to the Central States Pension Fund for non-existent pensions of deceased participants.

Foxx and Good reiterated their commitment to investigating PBGC's mishandling of taxpayer money, stating, "PBGC’s February 9 response made no attempt to explain how it justifies making payments beyond the amount authorized under the American Rescue Plan Act (ARPA) or why it is failing to take any steps to recoup those overpayments." They further emphasized the need for PBGC to recognize the gravity of the situation and take appropriate actions to safeguard taxpayer dollars.

The lawmakers outlined a series of inquiries that PBGC is expected to address, including providing legal justifications for overpayments, steps taken to quantify similar overpayments to other pension plans, and whether PBGC has requested plans to return the overpaid funds. They also questioned PBGC's plans to enhance the Special Financial Assistance (SFA) application process to prevent future errors.

PBGC's response to the Office of Inspector General (OIG) referencing a legal analysis from June 30, 2023, raised additional concerns for Foxx and Good. They demanded access to the specific legal analysis and supporting documentation that led PBGC to conclude that the funds in question were properly paid and should not be subject to recovery actions.

In light of previous comments made by Sean O’Brien regarding the funds provided to the Central States Pension Fund, Foxx and Good seek clarity on whether the funds should be refunded to PBGC if they were not rightfully entitled to the pension fund.

The lawmakers' efforts date back to January 16, 2024, when they initially demanded answers from PBGC after the agency's failure to recover the $127 million in taxpayer money. Following this, on January 30, 2024, Chairwoman Foxx introduced the Ghost Handouts and Overpayments Stop Today Act (GHOST Act) to address such issues and enhance oversight of the pension system.

The full extent of PBGC's response to these inquiries and the actions it plans to take moving forward remain crucial in ensuring accountability and the protection of taxpayer dollars.