Management and operating contractors' pension plans

Technical Report · Mon Jun 01 04:00:00 EDT 1987

OSTI ID:6342583

This report concerns the management of 28 M and O contractor pension plans with assets exceeding $2.6 billion in 1983. At the end of 1983, these pension plans were overfunded by $600 million. The Department could have saved $94 million in 1983 had the contractors been required to limit their pension plan contributions to the Government-established minimum level. Since 1979, the Department has continually reimbursed these contractors for contributions to pension plans that were already overfunded and we estimate that these plans are currently overfunded in excess of $1 billion. Additional annual savings of about $548,000 could be realized if the Department obtained waivers for M and O contractors participating in the Pension Benefit Guaranty Corporation's (PBGC) insurance program. Management and Administration, which has overall responsibility for controlling such costs, indicated it did not agree that contractors should fund pension plans at only the minimum required level. General agreement was indicated with the need to obtain waivers from PBGC premiums and better protect the Department's interest in contractor excess pension assets.

• Research Organization: USDOE Office of Inspector General, Albuquerque, NM (United States). Western Regional Office
• Sponsoring Organization: USDOE
• OSTI ID: 6342583
• Report Number(s): DOE/IG--0240; ON: TI87011109
• Country of Publication: United States
• Language: English

Related Subjects

99 GENERAL AND MISCELLANEOUS
990100* -- Management
AUDITS
CONTRACTORS
EXPENDITURES
MANAGEMENT
NATIONAL ORGANIZATIONS
PERSONNEL
US DOE
US DOE INSPECTOR GENERAL
US ORGANIZATIONS