The Pennsylvania Avenue Development Corporation was established as a wholly owned Federal corporation by the act of October 27, 1972 (86 Stat. 1266; 40 U.S.C. 871 et seq.), as amended.

PADC is governed by a 15-member Board of Directors appointed by the President. Eight of the members are from private life and 7 are from the Federal or District of Columbia Government. The Board also has 8 nonvoting members representing local, Federal, or District agencies concerned with urban planning or the arts and sciences.

FUNCTIONS

The Corporation will use Federal use Federal funds to upgrade the Pennsylvania Avenue Development Area with public improvement projects such as repaving and landscaping the Avenue and adjacent areas; preserving the designated historical landmarks; and developing a residential community and other people-oriented uses. Improvements under the comprehensive development plan will involve changes to facilitate traffic circulation, to increase pedestrian use, and to add amenities such as trees, street furniture, and new lighting.

The balance of the Corporation's program will engage the private sector in development projects compatible with the plan. PADC will use funds borrowed from the United States Treasury to assemble land for housing, office buildings, and retail uses in response to market demand. The Corporation will make public offerings of development opportunities on sites,

and it will enter into long-term leases with developers selected to carry out individual projects. The proceeds from the leases will be used to service and retire the Corporation's debt to the Treasury.

In carrying out the development plan, PADC works closely with a number of Federal agencies, including the Commission of Fine Arts, the National Capital Planning Commission, the Advisory Council on Historic Preservation, and the National Park Service. PADC also coordinates the implementation of the plan with affected agencies of the District of Columbia Government. For example, the District of Columbia Government refers building permits for new construction in the Pennsylvania Avenue Development Area to PADC for approval relating to conformity with the plan.

Sources of Information

The Pennsylvania Avenue Plan-1974 describes the program for comprehensive renewal of the designated area approved by Congress in May 1975. Copies of this publication are available from the Corporation at cost, as are other supplementary technical documents and economic studies. Copies of the annual reports of the Corporation are available in limited quantities at no charge.

Further information may be obtained from the Information Program Specialist, Pennsylvania Avenue Development Corporation, 425 Thir. teenth Street NW., Washington, D.C. 20004. Phone, 202-343-9423.

Approved.

E. R. QUESADA, Chairman, Board of Directors.

Title IV of the Employee Retirement Income Security Act of 1974 (ERISA), approved September 2, 1974 (88 Stat. 1003 et seq.; 29 U.S.C. 1301 et seq.), established the Pension Benefit Guaranty Corporation to guarantee payment of insured benefits if covered plans terminate without sufficient assets to pay such benefits.

The PBGC, a self-financing, whollyowned Government corporation subject to the provisions of the Government Corporation Control Act (59 Stat. 597; 31 U.S.C. 846), is governed by a Board of Directors consisting of the Secretaries of Labor, Commerce, and the Treasury. The Secretary of Labor is Chairman of the Board and is responsible for administering the PBGC in accordance with policies established by the Board. A seven-member Advisory Committee, composed of two labor, two business, and three public members appointed by the President, advises the PBGC on various

matters.

Activities

Coverage

Title IV of ERISA provides for mandatory coverage of most private de

fined benefit plans. These are those plans which provide a benefit, the amount of which can be determined from a formula in the plan, for example, based on factors such as age, years of service, average or highest salary, etc. At present, approximately 33 million participants in about 90.000 plans are covered.

Insurance Programs

Title IV of the act requires PBGC to establish two distinct but interrelated pension plan insurance programs and permits the PBGC to establish the terms and conditions of a third insurance program, as it determines to be appropriate. All of the PBGC insurance programs are restricted to the coverage of private pension plans. The insurance programs are:

BASIC BENEFITS INSURANCE PROGRAM

Effective upon enactment and subject to the payment limitations described below, PBGC is required to guarantee the payment of all nonforfeitabie basic benefits under the terms of a covered plan if the plan should terminate without sufficient assets to pay such benefits. Under this insurance program, PBGC guarantees the pav

ment of the plan's basic benefits up to a maximum amount equal to the lesser of 100 percent of the average monthly earnings during the participant's highest paid consecutive 5-year period or the actuarial value of a life annuity of $750 per month beginning at age 65 for plans which terminated in 1974. The $750 per month limitation is adjusted whenever the Social Security Act contribution and benefit base is modified; and for plans terminating in 1977, the maximum figure is $937.50. A plan or plan amendment must be in force for five or more years prior to the plan's termination for its respective basic benefits to be fully insured. Lesser coverage is, however, provided on a time-phased basis for basic benefits which have been in force less than five years prior to a plan's termination.

PBGC is not required to pay benefits to covered multiemployer pension plans which terminate prior to January 1, 1978, but PBGC has discretionary authority to do so when it determines that such payment will not jeopardize its payment of like benefits after December 31, 1977, and certain other conditions are met.

EMPLOYER CONTINGENT LIABILITY
INSURANCE PROGRAM

PBGC is also required to establish a contingent liability insurance program to insure any employer who maintains or contributes to a covered pension plan against his liability under ERISA (up to 30 percent of his net worth) in the event his plan terminates and assets are insufficient to pay the plan's guaranteed basic benefits.

If, in its determination, PBGC is able to develop satisfactory arrangements with private insurers within 36 months of ERISA's enactment to carry out the contingent liability insurance program in whole or in part, PBGC is authorized to require employers to elect coverage by such private insurers or by PBGC at such times and in such manner as PBGC determines necessary.

NON-BASIC BENEFITS INSURANCE
PROGRAM

As it determines to be appropriate, PBGC is authorized to establish insurance programs to guarantee the payment of other than basic plan benefits, as well as to establish when such other benefits are guaranteed.

The employer contingent liability insurance and non-basic benefits insurance programs are not yet in force. Plan Terminations

The plan administrator is required to notify PBGC at least 10 days prior to the proposed date of termination. The plan's assets and guaranteed benefit liabilities are then valued and a determination is made

by PBGC regarding the sufficiency of assets to pay guaranteed benefits. In all plan terminations covered by title IV, plan assets must be allocated to participants as stipulated in the act.

PBGC also may institute termination proceedings when certain events specified in the act indicate that such action may be necessary.

PBGC is authorized to prescribe simplified procedures for small plans, and it may pool the assets of such plans. In addition, PBGC may purchase the assets of any plan it is terminating.

Whenever there is a change in conditions relating to a plan being terminated which makes termination no longer advisable, PBGC may take appropriate action to restore the plan.

In instances when PBGC determines that the withdrawal of any employer or employers from a plan under which more than one employer makes contributions will result in a significant reduction in contributions to a plan, it may terminate that portion of it attributable to the withdrawal and treat the remainder as a new plan.

Premium Collection

All covered pension plans are required to pay prescribed premium rates to PBGC.