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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH
DATE: June 3, 2003
SUBJECT: Federal Acquisition Regulation (FAR); Deferred Compensation and Postretirement Benefits Other Than Pensions
SOURCE: Federal Register, June 3, 2003, Vol. 68, No. 106, page 33325
AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA)
ACTION: Proposed Rule
SYNOPSIS: It is proposed that the paragraphs of FAR 31.205-6, Compensation for Personal Services, that relate to deferred compensation and postretirement benefits other than pensions be revised for clarity and simplicity.
DATES: Comments are due on or before August 4, 2003.
ADDRESSES: Submit written comments on proposed rule to General Services Administration, FAR Secretariat (MVA), 1800 F Street, NW, Room 4035, Attn: Laurie Duarte, Washington, DC 20405. Submit e-mail comments to: farcase.2001-031@gsa.gov. Cite "FAR case 2001-031" when referring to this proposed rule.
FOR FURTHER INFORMATION CONTACT: Edward Loeb, 202-501-0650.
SUPPLEMENTAL INFORMATION: This proposed rule would make the following changes to FAR 31.205-6:
- Paragraph (k), Deferred Compensation Other Than Pensions, would be revised by:
- Deleting the first two sentences of paragraph (k)(l) which duplicate the definition of deferred compensation at FAR 31.001, Definitions ("Deferred compensation is an award given by an employer..."); deleting the third sentence of paragraph (k)(l) which duplicates requirements at FAR 31.205-6(a) ("Subject to 31.205-6(a), deferred awards are allowable..."); and deleting paragraph (k)(3) because it is obsolete ("Deferred compensation payments to employees under awards made before the effective date of 48 CFR 9904.15 [Cost Accounting Standard 415, Accounting for the Cost of Deferred Compensation, which went into effect April 17, 1992)...");
- Reversing the order of the remainder of paragraph (k)(l) to (k)(2);
- Changing the phrase "measured, allocated, and accounted for" to "measured, assigned, and allocated" in new paragraph (k)(1) (current (k)(2)), to be consistent with the language used in the cost accounting standards; and
- Making related editorial changes.
- Paragraph (o), Postretirement Benefits Other Than Pensions, would be revised by:
- Moving and revising the language in paragraphs (o)(3) through (o)(5) to paragraph (o)(2)(iii), Accrual Basis, because these requirements only apply to accrual costing other than terminal funding;
- Adding language to current paragraph (o)(6) (new paragraph (o)(3)) specifying how the contractor must handle refunds and credits ("The contractor shall credit the equitable share to the government either as a cost reduction or by cash refund at the option of the government."); and
- Making related editorial changes.
FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.
Copyright 2003 by Panoptic Enterprises. All Rights Reserved.
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