DCAA has issued an alert to its auditors reminding them of the contractor’s responsibility to maintain certain pension plan information to comply with CAS 413.50(c) requirements. CAS 413.50(c)(7) describes the record keeping responsibilities as maintaining a record of the portion of subsequent contributions, permitted unfunded accruals, income and benefit payment and expenses that should include a portion of investment gains and losses attributable to the assets of the plan. In the event of a segment closing, pension plan termination or curtailment of benefits, the contractor is to determine the difference between the actuarial accrued liability of the segment and the market value of the assets allocated to the segment. When “systematic deficiencies” exist in maintaining these records, DCAA is to issue a CAS 413 noncompliance report (07-PAC-021(R).

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