Blogging Employee Benefits

May 1, 2006

Energy Department Switches Off DB Pensions

Filed under: Contract Accounting, Pensions — Fuguerre @ 10:07 am

The U.S. Department of Energy has unilaterally decided to cease reimbusing its federal government contractors for costs associated with defined benefit pension plans for new contractor employees. Instead, the DOE will only reimburse costs for market-based defined contribution plans. Similarly, for new contractor employees the DOE will not reimburse costs for employees' medical plans unless the plans are market-based. The DOE anticipates full implementation of the new policy no later than March 1, 2007. [Notice DOE N 351.1; Press Release]

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