WASHINGTON—President Barack Obama has reappointed David M. Strauss, who was executive director of the Pension Benefit Guaranty Corp. from 1997-2001, as chairman of the agency's advisory committee.

Mr. Strauss, whose prior three-year term as panel chairman expired last week, will continue to represent the general public on the six-member panel, which has responsibilities that include advising on PBGC investment policies, trusteeship of terminated plans and other issues.

Mr. Strauss' tenure as PBGC executive director from July 1997 to January 2001 coincided with improvement in the agency's financial health. Aided by a strong economy and a lack of major plan terminations, the PBGC's surplus in its single and multiemployer insurance programs rose from about $3.7 billion in fiscal 1997 to a record of nearly $10 billion at the close of fiscal 2000.

Hit by massive losses from takeovers of hugely underfunded plans by failed or financially distressed employers, lower interest rates used to value its liabilities, and its own investment losses, the PBGC's financial position has dramatically deteriorated since then.

In November, the PBGC said its deficit in fiscal 2011 hit a record $26 billion. And the PBGC’s deficit could soar if the agency is required to take over the hugely underfunded pension plans sponsored by American Airlines Inc.

American’s parent, Fort Worth, Texas-based AMR Corp., which filed for Chapter 11 bankruptcy reorganization this month, said it intends to terminate its four plans. The PBGC estimates the plans have about $8.7 billion in unfunded benefits for which the agency would be liable if the plans fold.

Previous positions

Prior to joining the PBGC in 1997, Mr. Strauss was deputy chief of staff to Vice President Al Gore, consulting on a wide range of domestic issues that included retirement security and health care. He also was a staff director of the Senate Environmental and Public Works Committee.

Most recently, Mr. Strauss, a longtime North Dakota resident, was chairman of that state’s Democratic Party.