Fed. Circ. Rejects General Dynamics' Pension Calculations

Law360, New York (May 9, 2013, 5:41 PM EDT) -- The Federal Circuit on Thursday determined that a method used by General Dynamics Corp. for 25 years to calculate how it charges the government for incurred pension costs under contracts with the U.S. Department of Defense violates federal accounting standards.

In a split decision, the appeals panel upheld an Armed Services Board of Contract Appeals ruling that General Dynamic’s long-standing policy of updating its retirement plan forward pricing rates using a mid-year benchmark rather than January 1 violates the cost accounting standards established under CAS 412....
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