Several industry groups are urging the Cost Accounting Standards Board to adopt the Pension Protection Act’s minimum funding requirements as the basis for determining the measurement and assignment of CAS pension costs.  The comments follow the board’s request for input on how it should satisfy the congressional mandate to “harmonize” the PPA and CAS requirements. The disharmony stems from the passage of the PPA that establishes minimum funding requirements to protect retirees’ benefits but does not address pension cost accounting practices while CAS 412 and 413 address the later. Congress and the CAS Board have correctly held that meeting the PPA requirements would result in increased funding over funding that would result if contractors follow CAS requirements resulting in CAS covered contractors being adversely affected.

{TAG_FORM_TITLE}