Pension Benefit Guaranty Corporation
Phase One works alongside Pension Benefit Guaranty Corporation’s (PBGC) Contracts and Controls Review Department (CCRD) to support the analysis of pension payments, financial systems, vendor/contractor payments, internal controls, and general ledger accounting. Phase One helps PBGC identify pension fraud, improper payments, invalid premium filings, control deficiencies, and redundancies in data collection and activities. Analysis is actively performed on multiple layers of data, including the $6 billion in pension payments made annually as well as the $2.5 billion in premium collections due each year.
Why This Matters To You
Data is everywhere. Agencies that are better equipped to analyze both internal and external information are more likely to maximize efficiencies and minimize costs. PBGC is no different. Hard working Americans rely on their pensions after retirement; and PBGC’s job is to protect those pensions.
PBGC is not funded by taxpayer dollars. Instead, it relies on insurance premiums paid by the companies whose pension plans it protects. Because of this, it’s even more important that premiums received are accurate and timely. CCRD is leveraging audit technology to help minimize improper payments and maximize premium revenue at PBGC, ensuring that hard working Americans continue to receive their pensions.
PBGC, like other government agencies, is surrounded by data. Review too much, and you run the risk of the proverbial ‘paralysis by analysis’. Review too little, and you risk losing money from revenue lost, or potential fraud.
CCRD needed a balanced solution, focusing on real-time analysis and easy wins. Phase One was eager to assist CCRD in their design and implementation of a data analysis program and capability.
How We Helped
Phase One created, maintains, and operates a series of transaction analysis suites that analyze financial data in PBGC’s mission critical areas, including Accounts Payable (AP), Accounts Receivable (AR), and the General Ledger (GL).
One of these suites analyzes the pension payments themselves to identify duplicate, invalid, or otherwise improper distributions. Possible improper payments may stem from recipients who are no longer due a pension, no longer alive, or simply are receiving the incorrect amount. These reports are run repetitively and the outputs are delivered to PBGC executives, where in many cases a recovery is initiated.
Additional AP dashboards include real-time contractor analyses to review 100% of payments made by PBGC for vendor services. These dashboards have led to the identification and recovery of significant dollars spent on duplicate invoices, fraudulent vendors, or payments for services not rendered.
Just as important as the money PBGC distributes to its contractors and pension recipients, is the money it receives from annual premium collections. Phase One assisted PBGC in the development and execution of an annual premium compliance evaluation report, highlighting plans that may be underreporting or underpaying their premiums due. These efforts have led to the identification and recovery of millions of dollars in premium collections.