Audit of Sandia Corporation`s pension plans and other prefunded benefits
The audit disclosed that Sandia`s pension plans had $588.9 million in excess assets as of December 31, 1990, on a current value basis. If plan terminations and spin-offs occurred, at least $408.8 million of this amount could be returned to the Government without affecting the pension benefits that Sandia employees and retirees have earned. We recommended that Albuquerque take the necessary action to reduce the excess assets in the pension plans and recover the Government`s share. However, Albuquerque disagreed with the recommendation. Albuquerque justified leaving the excess assets in the pension plans to fund future plan amendments; to avoid future funding contributions; to avoid the costs and time-consuming administrative steps associated with taking action; and to prevent damaging effects on employee morale. We analyzed these points, and concluded that they should not prevent the Department from initiating action to return excess assets to the Government. Actuarial analysis of the pension plans showed that, even if certain plan adjustments were made, the plans were overfunded by $256 million as of December 31, 1991 (on an actuarial value basis).
- Research Organization:
- USDOE Office of Inspector General, Albuquerque, NM (United States). Western Regional Audit Office
- Sponsoring Organization:
- USDOE, Washington, DC (United States)
- OSTI ID:
- 10145565
- Report Number(s):
- DOE/IG-0346; ON: TI94010665; NC: NONE
- Resource Relation:
- Other Information: DN: Report to The Secretary; PBD: 6 Apr 1994
- Country of Publication:
- United States
- Language:
- English
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