At Deadline; DB reimbursements stop.(Late News)(United States. Department of Energy)(Julian Regan quits New York State Deferred Compensation Board)(Pioneer Investment Management Inc.)

Pensions & Investments, May, 2006

The U.S. Department of Energy will stop reimbursing expenses for defined benefit coverage for new contractor employees, according to a new policy announced April 27. The department "will reimburse contractors for the costs of their market-based defined contribution pension plans (similar to 401(k) plans) and market-based medical benefit plans,'' the department said in a statement.

"The new policy will improve the predictability of contractor benefit costs and mitigate the growth of the department's long-term liabilities for these costs.'' The department will continue to reimburse contractors for pension costs for current and retired employees. Watson Wyatt criticized the new policy, saying it will undermine the ability of government contractors to provide...

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