05.14.09

House Labor Committee Opens Investigation into Alleged Improprieties by Bush Pension Agency Head

WASHINGTON, DC -- U.S. Rep. George Miller (D-CA), chairman of the House Education and Labor Committee, today announced that the committee is opening an investigation of potential improprieties by the former director of the federal Pension Benefit Guaranty Corporation, Charles E. F. Millard, based on a draft report of the PBGC’s Inspector General.

“The House Education and Labor Committee is looking into very serious questions raised by the PBGC Inspector General that the former head of the PBGC had inappropriate contacts with Wall Street contractors. Our committee takes these issues seriously and we plan to review this matter thoroughly,” said U.S. Rep. George Miller.
The committee obtained a draft PBGC Inspector General report that alleges Millard may have had knowingly inappropriate contacts with Wall Street firms, some of which were awarded contracts to advise PBGC as it reallocated a portion of PBGC’s then $48.4 billion investment portfolio. PBGC solicited bids for these contracts to implement the new investment policy the former PBGC board approved in February 2008. The policy would, among other things, dramatically increase PBGC’s exposure to the stock market. The Inspector General’s report also raises serious questions about whether Millard had contacts with firms where he may have been seeking employment.

To read the PBGC Inspector General report, click here.

Last year, the committee investigated an outside consultant’s report – commissioned by PBGC – that raised series questions about the agency’s management and governance practices.

For more information on the committee’s work, click here.