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GAO Report: Additional Guidance Needed to Ensure DB Funding Requirements Are Consistent and Reasonable for Federal Defense Contractors
U.S. Government Accountability Office [GAO] Jan. 22, 2013
62 pages. "DOD contractors are among the largest sponsors of defined benefit pension plans in the United States and factor pension costs into the price of DOD contracts.... GAO assessed how [1] contractor pension costs are determined; [2] DOD ensures the contractor pension costs it pays are appropriate; [3] DOD contractors' defined benefit pension plans compare with plans sponsored by similar companies; [4] pension costs have affected DOD contract costs and the factors that contributed to these pension costs; and [5] the harmonization of CAS with ERISA will affect the amounts DOD will pay in pension costs in coming years.... GAO recommends that the Secretary of Defense clarify responsibility for and guidance on assessing pension reasonableness and determining discount rates for pension cost projections." [GAO-13-158, Jan. 22, 2013]
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