PBGC Has Generally Been Able To Hire and Retain Key Staff, but May Face Workforce and Compensation Challenges in the Future

From fiscal years 2000 to 2007, PBGC was generally able to hire and retain  staff in its key occupations, but the corporation has had some difficulty  hiring and retaining financial analysts and certain other staff. However, our analysis suggests that PBGC may face several workforce  and compensation challenges in the future—such as (1) a workforce with  relatively fewer years of federal experience, (2) the possible retirement of  up to a quarter of its workforce within the next 4 years, and (3) the  potential difficulty of hiring and retaining staff due to the corporation’s  existing compensation structure, which offers salaries lower than those of  some other executive branch agencies that employ similar staff. PBGC’s Overall Attrition Rate Is Similar to Those of Other Federal Agencies, but Rates Differ for Certain Key Occupations

From fiscal year 2000 to 2007, PBGC retained staff at rates similar to the  rest of the federal government for the corporation’s key occupations. Our analysis also found that PBGC’s overall attrition experience  was comparable to those at the federal financial regulatory agencies— such as FDIC and SEC. Second, PBGC faces the prospect of losing a significant number of its key  staff due to retirement eligibility. These steps have included drafting planning  documents, such as components of a human capital plan like a succession  management directive. In  addition to limited planning and data, PBGC had not fully explored all  available compensation options under its statutory authority even though  corporation executives stated that PBGC’s compensation structure may  hinder it from attracting and retaining key staff. While PBGC Is Making Progress toward Better Human Capital Management, No Formal, Comprehensive Human Capital Plan Exists to Prepare for Future Challenges

PBGC has taken steps to improve its human capital planning and  practices. Limited Data Analysis on PBGC’s Overall Workforce May Hinder Its Ability to Address Current and Future Human Capital Needs

PBGC has not routinely and systematically targeted and analyzed all key  workforce data—such as attrition rates, occupational skills mix, and  trends—necessary to create an overall workforce profile that addresses  current and future workforce needs. After identifying these key occupations, we assessed PBGC’s recent  experience in hiring and retaining staff by using the Office of Personnel  Management’s (OPM) Central Personnel Data File (CPDF) to identify  different workforce data, such as hiring, attrition, separation types,  retirement eligibility, federal tenure, and pay averages for these positions. To identify the steps that PBGC had taken to strategically hire and retain key  staff, we reviewed previous GAO work on strategic human capital  management, PBGC’s single-employer insurance programs, and the  corporation’s management challenges. Private Pensions: The Pension Benefit Guaranty Corporation and Long- Term Budgetary Challenges.
Why GAO Did This Study

The Pension Benefit Guaranty Corporation (PBGC) employs over 800 federal employees and uses some 1,500 private sector employees to insure the pensions of millions of private sector workers and retirees in certain employer-sponsored pension plans. In recent years, PBGC's projected financial liabilities and workloads have increased greatly due to a large number of pension plan terminations. Given this, it is important that PBGC remain well positioned to fulfill its promise to those retirees who depend on it. GAO was asked to report on (1) PBGC's recent experience in hiring and retaining key staff and how it compares to other federal agencies and (2) the actions PBGC has taken to strategically hire and retain key staff and what additional steps, if any, can be taken. To do this, we analyzed PBGC's workforce by using the Office of Personnel Management's (OPM) Central Personnel Data File to identify data and compared those data to data from other federal agencies. We also interviewed officials from selected agencies, including PBGC, OPM, and the Department of Labor.

What GAO Found

From fiscal years2000to 2007, PBGC was generally able to hire staff in its key occupations--such as accountants, actuaries, and attorneys--and retain them at rates similar to those of the rest of the federal government. However, PBGC has had some difficulty with hiring and retaining staff for specific occupations and positions, including executives and senior financial analysts. Despite the general ability to hire and retain key staff, data also suggest that PBGC may be faced with workforce challenges; these include managing a workforce with relatively few years of federal experience, the prospect of nearly one-quarter of its key staff retiring within the next 4 years, and difficulty hiring and retaining key staff in the future due to PBGC's existing compensation structure, which offers salaries lower than some federal agencies that employ similar staff, such as the Federal Deposit Insurance Corporation. While PBGC is making progress in its human capital management approachby taking steps to improve its human capital planning and practices--such as drafting a succession management plan--the corporation lacks a formal, comprehensive human capital plan that integrates several critical components such as workforce planning. Also, even though it collects workforce data, PBGC has not routinely and systematically targeted and analyzed all necessary workforce data--such as attrition rates, occupational skills mix, and trends--to understand its current and future workforce needs. Instead, officials stated that they generally reacted to management personnel requests, and developed human capital data as needed. In addition to limited planning and data analysis, PBGC has not fully explored all available compensation options under its existing statutory authority, even though officials say and data suggest that the corporation's current compensation structure may limit its ability to hire and retain certain key staff.