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Former Head of Pension Agency Takes Fifth Amendment at Senate Hearing
The former director of the government's pension agency took the Fifth Amendment at a Senate hearing where lawmakers quizzed him about allegations that he had inappropriate contacts with three Wall Street firms.

AP

Wednesday, May 20, 2009


WASHINGTON -- The former director of the government's pension agency took the Fifth Amendment Wednesday when senators asked about allegations that he had inappropriate contacts with Wall Street firms while running the operation, which insures the pensions of 44 million Americans.

Charles E.F. Millard denies that he had improper communications with the firms that recently won multimillion-dollar contracts to advise the agency on a new strategy to invest its assets more heavily in stocks, real estate and private equity rather than more conservative fixed-income treasury securities.

In a statement issued before the hearing, Millard's attorney Stanley Brand questioned the Senate Special Committee on Aging's jurisdiction in the matter. He said he advised Millard to assert his constitutional rights because he believes certain members of Congress appear to have already reached negative conclusions about his client's actions.

"I decline to answer any and all questions," Millard said.

The allegations were contained in a PBGC inspector general's report last week that said Millard's office had hundreds of phone conversations and e-mails with the Wall Street firms bidding for the work in 2007 and 2008 at the same time he was actively evaluating their proposals.

"The draft report was published on a committee Web site and senators were calling for further investigations before the report was even final," Brand said. "The Fifth Amendment protects innocent people against hostile environments. And Congress's recent actions and statements have created a biased and hostile environment toward Mr. Millard."

The hearing was held at a time when the rapidly deteriorating financial health of the PBGC is raising alarms in Congress. Key lawmakers are demanding tougher rules to ensure vigilant oversight of its multibillion-dollar investment portfolio.

The recession is forcing into bankruptcy an increasing number of companies with underfunded pension plans, leaving the PBGC with billions of dollars more to pay out in pension checks to retirees in the future. Its long-term deficit tripled in the past six months to a startling $33.5 billion.

http://www.foxnews.com/politics/2009/05/20/head-pension-agency-takes-fifth-amendment-senate-hearing/