Human Resources
Aon Hewitt Submits Comments on CAS 413 Pension Adjustments for Extraordinary Events

Aon Hewitt Submits Comments on CAS 413 Pension Adjustments for Extraordinary Events


Loading

On September 5, 2013, Aon Hewitt submitted comments to the Cost Accounting Standards (CAS) Board on CAS 413 Pension Adjustments for Extraordinary Events. The CAS Board is in the fact-finding stage of a four-part process of rulemaking with respect to CAS 413. The CAS Board has requested comments as it prepares to develop a Staff Discussion Paper on the Standard. The notice in which the CAS Board requested comments and outlined issues under consideration was published in the Federal Register on July 8, 2013.

In the comment letter, Aon Hewitt discusses challenges faced by Government contractors and the impact of current accounting rules that apply to events such as segment closures, plan terminations, and benefit curtailments. Some of the modifications suggested by Aon Hewitt reflect general changes in the business environment over the last four decades. When the CAS 413 provisions were written in the 1970s and amended in 1995, pension plans were rarely frozen. Today, plan freezes are becoming more common as contractors seek to decrease risks and volatility in pension plan costs. Other recommendations ask for clarification and further guidance on certain issues, such as the determination of segment closing dates or plan termination dates.

The Aon Hewitt letter was authored by Eric A. Keener and James M. Forbush, with input from Tim Kohl, Kurt Denlinger, Marvin Stokes, and Mark Spangrud.

Download Aon Hewitt Submits Comments on CAS 413 Pension Adjustments for Extraordinary Events