Allocation of an Air Force Contractor's Pension Fund Assets May be Inequitable.
Abstract
During our review of contractor's compliance with cost accounting standards relating to pension costs, we found that the pension plan for Pan American World Airways, Inc. (Pan Am), had experienced significant actuarial gains from unanticipated job terminations of employees working on an Air Force contract. At the time of our fieldwork in 1979, Pan Am had initiated actions to establish separate pension plans which would ensure that the Government received proper credit for these termination gains. However, as of July 1981, these actions had not been completed and it appears that the method proposed by Pan Am for allocating pension plan assets may not be equitable to the Government. We believe that you should act to ensure that the pension plan established for employees working on Government projects receives an equitable share of assets. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 23, 1981
- Accession Number
- ADA107375
Entities
Organizations
- United States Government Accountability Office