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 | 8 min read | 10.01.25
On September 29, 2025, the U.S. Department of Commerce Bureau of Industry and Security (BIS) announced a sweeping Interim Final Rule (IFR), (the “Affiliates Rule”) expanding which entities qualify as Entity List or Military End-User entities, thereby subjecting those entities to elevated export control restrictions under the Export Administration Regulations (EAR). U.S. export restrictions applicable to entities on the Entity List, Military End-User (MEU) List, and Specially Designated Nationals and Blocked Persons (SDN List) now apply to foreign affiliates that are, in the aggregate, owned 50% or more by one or more of the aforementioned entities. An entity that becomes subject to these restrictions because of its ownership structure will be subject to the most restrictive controls that attach to any of its parent entities, regardless of ownership stakes.
Client Alert | 2 min read | 10.01.25
CPSC Shutdown Plan: Continue Enforcement, Pause Public Engagement and Civil Penalties
Client Alert | 2 min read | 10.01.25
Client Alert | 2 min read | 09.30.25
CARB Issues Preliminary List of Entities Covered by California Climate Disclosure Laws