PBGC Investment Risk Management System (IRMS)

The Employee Retirement Income Security Act of 1974 (ERISA) established Pension Benefit Guaranty Corporation (PBGC) as a federal corporation to encourage the growth of defined benefit pension plans, provide timely and uninterrupted payment of pension benefits, and keep pension insurance premiums at a minimum. PBGC is not funded by general tax revenues. PBGC collects insurance premiums from employers that sponsor insured pension plans, earns money from investments, and receives funds from pension plans it takes over. PBGC manages its investment assets under an Investment Policy Statement (IPS) mandated by the Board of Directors (Board). The Board consists of the Secretaries of Labor, Commerce, and Treasury, with the Secretary of Labor as Chairman. The IPS is located at:www.pbgc.gov/sites/default/files/april-2019-ips-pbgc.pdf. The PBGC administers two separate insurance programs. The Multiemployer Program protects about 10.9 million workers and retirees in about 1,360 pension plans. The Single-Employer Program protects about 22.7 million workers and retirees in about 23,900 pension plans. The assets and liabilities of the Multiemployer and Single-Employer programs are separate. The Multiemployer Program covers defined benefit pension plans that are created through one or more collective bargaining agreements between employers and one or more employee organizations or unions. The employers are usually in the same or related industries, such as transportation, construction, mining, and hospitality. PBGC provides financial assistance to insolvent plans to allow them to pay guaranteed benefits and reasonable administrative expenses. In FY 2021, PBGC provided $230 million in financial assistance to 109 multiemployer plans. The Single-Employer Program covers defined benefit pension plans that generally are sponsored by a single employer. When an underfunded single-employer plan terminates, PBGC takes over the plan’s assets, administration, and payment of benefits up to the legal limits. In FY 2021, PBGC paid approximately $6.4 billion in benefits to more than 970,000 retirees across more than 5,000 single-employer plans. More information about PBGC and organizational structure can be found at: www.pbgc.gov. Also, see www.pbgc.gov/about/who-we-are/pg/executive-staff and www.pbgc.gov/about/who-we-are/pg/pbgc-departments. The contractor shall provide CID timely and accurate exposure, risk, performance reporting, and stress testing at the total plan level, asset class level, composite level, individual portfolio level, and individual security level for the PGBC Trust and Revolving Fund holdings; and provide liability driven investment (“LDI”) reporting on funded status, interest rate hedge ratio, spread hedge ratio, surplus volatility, and key rate durations. The subject contract was awarded competitively as a Firm Fixed Price (FFP) contract. The performance period is a base period of twelve (12) months and nine (9) twelve (12) month option periods.