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.
Insights
Client Alert | 4 min read | 03.04.26
Sixth Circuit Finds EFAA Arbitration Bar to Entire Case — Not Just Sexual Harassment Claims
The United States Court of Appeals for the Sixth Circuit held, in an issue of first impression for that court, that the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (EFAA) renders an employer’s pre-dispute arbitration agreement unenforceable as to a plaintiff's entire lawsuit, whenever the lawsuit includes a viable sexual harassment claim.
Client Alert | 3 min read | 03.02.26
Client Alert | 4 min read | 03.02.26
Client Alert | 3 min read | 02.27.26
