Closing A Business Unit Creates An Opportunity To Recover Unfunded Pension Costs
Client Alert | 1 min read | 07.08.05
Although the Government has never contested that contractors with underfunded pension plans are entitled under CAS 413 to claim a lump sum adjustment for underfunded pension costs in connection with a segment closing, both the Defense Department and the Justice Department have asserted that a contractors' right to recover such costs may be limited by the standard Limitation of Costs clause, by standard contract release of claims language, and by regulatory provisions that require that pension plan contributions be made in the same year that the contractor claims pension costs. In a decision issued on July 5, 2005, in General Motors Corp. v. United States, the Court of Federal Claims rejected all of those Government arguments, only agreeing with the Government that GM will be required at some point to make contributions to its plan in an amount at least equal to the reimbursement it receives from the Government, and leaving open the possibility that contributions already made to the plan by GM since the segment closing will satisfy that requirement.
Insights
Client Alert | 3 min read | 12.10.24
Fast Lane to the Future: FCC Greenlights Smarter, Safer Cars
The Federal Communications Commission (FCC) has recently issued a second report and order to modernize vehicle communication technology by transitioning to Cellular-Vehicle-to-Everything (C-V2X) systems within the 5.9 GHz spectrum band. This initiative is part of a broader effort to advance Intelligent Transportation Systems (ITS) in the U.S., enhancing road safety and traffic efficiency. While we previously reported on the frustrations with the long time it took to finalize rules concerning C-V2X technology, this almost-final version of the rule has stirred excitement in the industry as companies can start to accelerate development, now that they know the rules they must comply with.
Client Alert | 6 min read | 12.09.24
Eleven States Sue Asset Managers Alleging ESG Conspiracy to Restrict Coal Production
Client Alert | 3 min read | 12.09.24
New York Department of Labor Issues Guidance Regarding Paid Prenatal Leave, Taking Effect January 1
Client Alert | 4 min read | 12.06.24