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No PRB Cost Adjustment For Segment Closings

Client Alert | 1 min read | 06.02.10

In related decisions filed on April 29, the Court of Federal Claims effectively precluded contractors from recovering any costs for unfunded post-retirement benefits (primarily retiree medical and life insurance) in connection with business segment closings, absent a specific contract provision promising to indemnify the contractor for the unfunded liability. In Raytheon v. U.S., the court held that benefits covered by so-called 401(h) subaccounts in the contractor's pension plan (a relatively uncommon situation) are not "pension benefits" and, therefore, are not subject to the segment-closing provisions of CAS 413; in Gen. Elec. Co. v. U.S., the court held that pay-as-you-go benefit plans covering retired employees and dependents (by far the more common situation) are not subject to the provisions of CAS 413 requiring "segment closing" adjustments for pension costs.

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Client Alert | 4 min read | 07.27.26

WARNING: California’s Listing of Microplastics as a Candidate Chemical May Result in Unexpected, and Imminent, Compliance Obligations Under AB 1200 (California Safer Food Packaging and Cookware Act)

On June 18, 2026, the California Department of Toxic Substances Control (DTSC) added microplastics to the list of Candidate Chemicals maintained under the state’s Safer Consumer Products (SCP) regulations.  The listing of microplastics, which becomes effective on October 1, 2026, is the first step in the SCP regulatory process, which could lead to restrictions on products that contain or release microplastics. ...