-- is as small as pbgc.ts members other responsibilities limit the time they have to focus on pbgc is this. the board structure is vulnerable to disruptive transition. at each change in presidential administration, the entire board and the pbgc director leaves with the administration, and not only the meeting continuity of pbgc, but leaving no board level leadership in the face of immediate policy challenges. amidst the turbulent economic times between february 2009 and february 2010, the board did not meet at all. gao -- suggest that it be changed to include additional members who possess knowledge and expertise useful to pbgc's mission, and that the terms of the overlapping to the ensure an active board at all times. these steps can improve continuity and strength of the pbgc oversight. i am pleased that this committee is considering legislation that would bring about such a change. i would like to change -- i would like to turn to management issues at pbgc. since the mid-1980's, pbgc has had contracts cov

with that pbgc. in hearing our concerns and we openly welcome suggestions on how we can make it even better than it is. i have to issues that want to highlight today. first is a general observation. we have already mentioned one of the missions of the pbgc is encourage voluntary private pensions. as a former corporate risk manager, i spent many hours negotiating with insurance companies of all kinds on all kinds of risks throughout the world. typically, we would come up with a win/win solution where the insurance company would recognize the business needs of the insured and the risks for the insured would be paid off and the insurance company would maintain its requirements for profitability and reserves. once and awhile, an insurance company would not be able to for one reason or another, recognize the needs of the business and a decision would have to be made either to find a different insurance company or not ensure that particular risk. the risk manager has no choice in the defined benefits plan.

they are not turned over to the pbgc. certainly, pbgc has to take into account the likelihood that they might be turned over, but we need to encourage these companies to continue to fund them, as we are today. even though employers may not continue to be participating, there are hundreds of thousands of employers who are participating in funds that have been frozen. we want those to continue. just because those are not available for current employees does not mean that they are necessarily healthy and will not be a problem for the pbgc. all of these plans will come to the pbgc for their efforts. .> thank you spirit >> it seems apparent that we need new board and new governance rules and obligations for the board, and also a contract procurement issue. in a lot of issues and questions, -- i have lots of issues and questions, but i was interested in the testimony about overpayment. you say that the management of the benefit determination process does not provide for separate reporting of performance measures for large, comp

i don't have to tell what you it means when americans' pension goes over to pbgc. it means that an american's pension is slashed, often dramatically. so these are americans who either lost their jobs and their health coverage or lost large chunks of their pensions and their health coverage. as i stated earlier, this amendment would extend modest amendment to the health coverage tax credit, or the hctc. the hctc was established eight years ago to help these workers and retirees purchase private health coverage to replace the employer-sponsored coverage they lost. unfortunately, because of the modest size of the tax credit and other limitations, many credit eligible individuals have remained uninsured. and as too many americans know, the combination of no health insurance and a dramatically reduced pension spells financial hardship. dramatic financial hardship, particularly for people forced into early, unplanned retirement. these are americans who worked hard, who were loyal to their companies, who were often involved in their communities, who earned their pensions