Seniors who look to their pensions as a second source of income to try and maintain retirement living similar to earlier times may have a new safeguard thanks to efforts by Senator Herb Kohl, chairman of the special committee on aging.
Kohl was concerned about the management of the Pension Benefit Guaranty Corporation, the federal agency tasked with insuring the pensions of 44 million Americans because of investment choices made by outgoing PBGC director Charles Millard that have left it with some financial questions.
He introduced legislation that will change how PBGC is governed, including staggering the terms of board members and mandating that the director recuse him or herself from proceedings with a potential conflict of interest, guidelines that he says will help ensure the safety of pensions.
"Decisions made by PBGC management and a lack of oversight and governance by previous PBGC Boards have contributed to the agency's financial situation," said Kohl.
"The role of PBGC is too crucial to allow its governance to slip through the cracks."