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Board Finds Liability For Constructive Receipt of Pension Plan Assets at Plan Merger

Client Alert | 1 min read | 06.18.07

Determining entitlement on an appeal by ICI Americas, Inc. (May 23, 2007), of an Army claim for $80 million in surplus pension assets, the ASBCA held that (1) until a contractor “receives” (meaning “to take possession or delivery of”) money, the government has no basis for recovery of a credit under the credits clause, FAR 31.201-5; (2) where no pension costs are paid under a particular contract subject to FAR 31.205-6(j), but not subject full CAS coverage, the CAS 413.50(c)(12) segment closing provisions are not applicable to the contract through FAR 31.205-6(j); (3) a contractor constructively receives pension assets through a pension plan merger and must in accordance with FAR 31.205-6(j)(4), Termination of Defined Benefit Pension Plans, refund the government the equitable portion of any overfunding; and (4) the Board could admit expert reports and testimony that included interpretative material on CAS, affording appropriate weight to such interpretations."

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Client Alert | 6 min read | 11.19.25

Buying Peace: The Importance of Releasing FCA Liability When Resolving Criminal Allegations of Fraud Against the Government

The facts before the Third Circuit in the recently decided case of Patel v. United States illustrate how parties can put themselves in a bind if they make factual admissions when resolving a criminal case involving fraud on the government while not simultaneously resolving the government’s civil claims under the False Claims Act (FCA) for the same underlying conduct....