Gordon Hartogensis, President Trump’s nominee to serve as Director of the Pension Benefit Guaranty Corporation (PBGC), testified and answered questions at a confirmation hearing the Senate Finance Committee held on Sept. 27. Senators questioned Hartogensis regarding his views on the health of the pension system and how to improve it, and what he would bring to the office.
If confirmed, Hartogensis would replace W. Thomas Reeder, Jr., who was appointed to the post by President Obama in October 2015.
The senators did not mince words with Hartogensis regarding the challenges he would face as PBGC head. “Mr. Hartogensis, if you are confirmed, you’ll be serving during one of the most challenging periods in PBGC history,” said Sen. Bill Cassidy (R-LA), adding that, “Congress recognizes the challenges” to the PBGC and the solvency of retirement plans. “This agency, as all of us know, faces serious challenges,” added Sen. Ron Wyden (D-OR).
Hartogensis assured committee members that he recognizes and appreciates the many challenges facing the agency he was tapped to head. He said that the condition of the single-employer pension insurance program “is likely to continue to improve in the next decade,” while that of the multi-employer insurance program is likely to continue to face strains. But he also noted that the PBGC has “operational issues that must be addressed,” as well as cybersecurity issues. One of the most important roles for a PBGC head is management, Hartogensis told Cassidy.
Wyden probed further regarding an earlier discussion he and Hartogensis had in the senator’s office. He noted that Hartogensis had remarked that one answer to the solvency problems the multi-employer program faces may be to alter the PBGC premium structure for it. “I’ve got to be candid — I found this answer disappointing,” said Wyden. Asked by Wyden who should be paying multi-employer insurance premiums that are not already doing so, Hartogensis responded that “others than just employers,” could also pay them, including employees.
Hartogensis, who currently serves as director of a family trust, has a background in the private sector that includes investing; software development in the technology sector; and management of financial equities, bonds and private placements. Wyden said that it can be “a big plus that somebody comes from the private sector” but also noted that Hartogensis does not have experience with policy and that “the bar gets a little bit higher” so the committee “can get an idea of what you might do” as PBGC head. Menendez expressed concern about Hartogensis’ lack of experience working with pensions.
Hartogensis responded that he considers his background to be a plus. “The PBGC will benefit from the perspective of an outsider,” he told Wyden, adding that, “The PBGC will benefit from an experienced technology leader at the helm.”
Senators also stressed the need for cooperation in meeting the needs of the PBGC and those whom it serves. “Are you prepared to work with the [Senate Finance] Committee?” asked Sen. Ben Cardin (D-MD). “Absolutely,” responded Hartogensis, adding that he also plans to work with the Senate Committee on Health, Education and Pensions (HELP) as well as committees in the House of Representatives. Wyden also expressed his interest in “seeking bipartisan solutions.”
The pension crisis “needs a bipartisan solution,” Hartogensis told Cardin. “I see myself as a bipartisan problem solver,” Hartogensis assured the committee, adding, “I can be a facilitator in evaluating different solutions and bringing different parties together.”
“This is an important mission for me,” Hartogensis said in response to Sen. Bob Menendez’ (D-NJ) remark that he needed “to know that you’re going to stand up with the working class to protect their pensions.” Hartogensis said “I pledge to work with Congress to protect the retirement security of all Americans” and assured committee members, “I understand what’s at stake” and what employees stand to lose.
Further Action Pending
At this time, a date has not been scheduled for a vote by the Finance Committee on Hartogensis’ nomination; nor has a date been set for consideration by the Senate HELP Committee.
If confirmed, Hartogensis would replace W. Thomas Reeder, Jr., who was appointed to the post by President Obama in October 2015.
The senators did not mince words with Hartogensis regarding the challenges he would face as PBGC head. “Mr. Hartogensis, if you are confirmed, you’ll be serving during one of the most challenging periods in PBGC history,” said Sen. Bill Cassidy (R-LA), adding that, “Congress recognizes the challenges” to the PBGC and the solvency of retirement plans. “This agency, as all of us know, faces serious challenges,” added Sen. Ron Wyden (D-OR).
Hartogensis assured committee members that he recognizes and appreciates the many challenges facing the agency he was tapped to head. He said that the condition of the single-employer pension insurance program “is likely to continue to improve in the next decade,” while that of the multi-employer insurance program is likely to continue to face strains. But he also noted that the PBGC has “operational issues that must be addressed,” as well as cybersecurity issues. One of the most important roles for a PBGC head is management, Hartogensis told Cassidy.
Wyden probed further regarding an earlier discussion he and Hartogensis had in the senator’s office. He noted that Hartogensis had remarked that one answer to the solvency problems the multi-employer program faces may be to alter the PBGC premium structure for it. “I’ve got to be candid — I found this answer disappointing,” said Wyden. Asked by Wyden who should be paying multi-employer insurance premiums that are not already doing so, Hartogensis responded that “others than just employers,” could also pay them, including employees.
Hartogensis, who currently serves as director of a family trust, has a background in the private sector that includes investing; software development in the technology sector; and management of financial equities, bonds and private placements. Wyden said that it can be “a big plus that somebody comes from the private sector” but also noted that Hartogensis does not have experience with policy and that “the bar gets a little bit higher” so the committee “can get an idea of what you might do” as PBGC head. Menendez expressed concern about Hartogensis’ lack of experience working with pensions.
Hartogensis responded that he considers his background to be a plus. “The PBGC will benefit from the perspective of an outsider,” he told Wyden, adding that, “The PBGC will benefit from an experienced technology leader at the helm.”
Senators also stressed the need for cooperation in meeting the needs of the PBGC and those whom it serves. “Are you prepared to work with the [Senate Finance] Committee?” asked Sen. Ben Cardin (D-MD). “Absolutely,” responded Hartogensis, adding that he also plans to work with the Senate Committee on Health, Education and Pensions (HELP) as well as committees in the House of Representatives. Wyden also expressed his interest in “seeking bipartisan solutions.”
The pension crisis “needs a bipartisan solution,” Hartogensis told Cardin. “I see myself as a bipartisan problem solver,” Hartogensis assured the committee, adding, “I can be a facilitator in evaluating different solutions and bringing different parties together.”
“This is an important mission for me,” Hartogensis said in response to Sen. Bob Menendez’ (D-NJ) remark that he needed “to know that you’re going to stand up with the working class to protect their pensions.” Hartogensis said “I pledge to work with Congress to protect the retirement security of all Americans” and assured committee members, “I understand what’s at stake” and what employees stand to lose.
Further Action Pending
At this time, a date has not been scheduled for a vote by the Finance Committee on Hartogensis’ nomination; nor has a date been set for consideration by the Senate HELP Committee.
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