The House Education and Workforce Committee has taken significant action by subpoenaing Gordon Hartogensis, the head of the Pension Benefit Guaranty Corporation (PBGC), amid a probe into the mishandling of $127 million paid to a Teamsters’ pension plan, including payments made to deceased participants.

Chairwoman Virginia Foxx (R-NC) authorized the subpoena after encountering resistance from the PBGC in providing information about overpayments to 3,479 deceased members of the Central States Pension Fund. Despite repeated requests for transparency, the agency failed to comply, prompting the committee’s decisive move.

The investigation revealed that the International Brotherhood of Teamsters’ pension plan made erroneous payments following the receipt of $35.8 billion in federal funding from the American Rescue Plan, signed into law by President Biden. The payments occurred without proper consultation of the Social Security Administration’s Full Death Master File, leading to payments to individuals who were no longer alive.

The House Committee’s actions come in the wake of heightened scrutiny over federal spending, with a recent report by the Government Accountability Office highlighting $236 billion in improper payments across 14 federal agencies in fiscal year 2023. The Department of Labor has also announced that the funds must be recovered, emphasizing the necessity for accountability and fiscal responsibility.

Despite assurances from PBGC Director Gordon Hartogensis that steps have been taken to rectify the situation, including coordination with relevant parties to recover the funds, concerns persist over the agency’s handling of taxpayer dollars. Hartogensis’ testimony before the House Subcommittee on Health, Employment, Labor, and Pensions failed to assuage inquiries regarding the mismanagement of the Teamsters’ pension funding.

The subpoena signals a firm stance by the House Committee in demanding accountability and transparency from federal agencies responsible for overseeing pension funds. As the investigation progresses, stakeholders await further developments regarding the recovery of misappropriated funds and measures to prevent similar incidents in the future.