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ERIC
ERIC Updates

THE ERISA COMMITTEE

<nobr>Sep 8, 2006</nobr>

Senate Approves Consideration of Retirement Plan Costs for Department of Defense Contractors

The Senate has approved an amendment (S. Amdt. 4857) to the Department of Defense Appropriations bill (H.R. 5631) that may prohibit companies bidding for Department of Defense contracts from offering retirement benefits that are 'inferior' to the benefits offered to Department of Defense Civilian employees. A copy of the official description of the purpose of the amendment is attached.

The language of the actual amendment states that companies who bid for Department of Defense contracts may not receive a competitive advantage by "offering to such workers (those who work on the DOD contract) a retirement benefit that in any year costs less than the annual retirement cost factor applicable to Department of Defense civilian employees under chapter 84 of title 5, United States Code."

ERIC is holding discussions with Senate staff regarding the details of the amendment and will update members as more information becomes available. If your company may be impacted by the amendment, please email Vanessa Scott at vscott@eric.org as soon as possible.

Text Files:

S. Amdt. 4857


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