[Federal Register Volume 61, Number 219 (Tuesday, November 12, 1996)]
[Rules and Regulations]
[Page 58011]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-28863]
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OFFICE OF MANAGEMENT AND BUDGET
Office of Federal Procurement Policy
48 CFR Part 9904
Cost Accounting Standards Board; Cost Accounting Standards for
Composition, Measurement, Adjustment, and Allocation of Pension Costs
AGENCY: Cost Accounting Standards Board, Office of Federal Procurement
Policy, OMB
ACTION: Correction.
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SUMMARY: This document contains technical and typographical corrections
associated with CAS 9904.412, ``Cost Accounting Standard for
composition and measurement of pension cost'', and CAS 9904.413,
``Adjustment and allocation of pension cost.'' The corrections deal
with language inconsistencies and/or typographical errors that appear
in the Cost Accounting Standards Board's rules, (48 CFR, 10/1/96).
Specifically the illustration at CAS 9904.413-60(c)(13) requires
correction in order to conform it to the requirements of 9904.413-
50(c)(12)(v).
EFFECTIVE DATE: March 30, 1995.
FOR FURTHER INFORMATION CONTACT: Richard C. Loeb, Executive Secretary,
Cost Accounting Standards Board (telephone: 202-395-3254).
List of Subjects in 48 CFR Part 9904
Cost accounting standards, Government procurement.
Richard C. Loeb,
Executive Secretary, Cost Accounting Standards Board.
For the reasons set forth in this preamble, chapter 99 of title 48
of the Code of Federal Regulations is amended as set forth below:
1. The authority citation for part 9904 continues to read as
follows:
Authority: Pub. L. 100-679, 102 Stat 4056, 41 U.S.C. Sec. 422.
PART 9904--COST ACCOUNTING STANDARDS
9904.412 [Corrected]
2. In section 9904.412-50, the first sentence of paragraph (d)(2)
introductory text is corrected to read as follows.
9904.412-50 Techniques for application.
* * * * *
(d) * * *
(2) For nonqualified defined-benefit pension plans that meet the
criteria set forth at 9904.412-50(c)(3), pension costs assigned to a
cost accounting period are fully allocable if they are funded at a
level at least equal to the percentage of the complement (i.e., 100%
minus tax rate % = percentage of assigned cost to be funded) of the
highest published Federal corporate income tax rate in effect on the
first day of the cost accounting period. * * *
* * * * *
9904.413 [Corrected]
3. In section 9904.413-60, correct the last sentence of paragraph
(c)(7), the fourth sentence of paragraph (c)(8), the fifth sentence of
paragraph (c)(12), the last sentence of paragraph (c)(13) and the
second sentence of paragraph (c)(24) are corrected to read as follows:
9904.413-60 Illustrations.
* * * * *
(c) * * *
(7) * * * In accordance with 9904.413-50(c)(2)(iii), the amount of
pension cost must be based on an acceptable termination of employment
assumption for that segment; however, as provided in 9904.413-
50(c)(10), all other assumptions for that segment may be the same as
those for the remaining segments.
(8) * * * Although some employees are hired by the successor
contractor, because Contractor K no longer operates the facility, it
meets the 9904.413-30(a)(20)(iii) definition of a segment closing. * *
*
* * * * *
(12) * * * In determining the segment closing adjustment under
9904.413-50(c)(12) the actuarial accrued liability and the market value
of assets are reduced by the amounts transferred to the buyer by the
sale. * * *
(13) * * * However, because all pension assets and liabilities have
been transferred to other segments or to successors in interest of the
contracts of Segment A, an immediate period adjustment is not required
pursuant to 9904.413-50(c)(12)(v).
* * * * *
(24) * * * As permitted by 9904.413-50(c)(1)(ii), the contractor
first applies $12,000 of the contribution amount to Segment A, which is
performing work under Government contracts, for purposes of 9904.412-
50(d)(1). * * *
* * * * *
[FR Doc. 96-28863 Filed 11-8-96; 8:45 am]
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