In 2009, the Court of Federal Claims granted a contractor's motion for summary judgment in a segment closing case involving Cost Accounting Standard 413, concluding that the contractor had no remaining liability to the government following its transfer of pension asset surpluses to predecessor companies. [DIRECTV Group Inc. v. United States, Fed. Cl., No. 04-1414C, 10/14/09)]. In January 2012, the U.S. Court of Appeals for the Federal Circuit affirmed this decision. [The DIRECTV Group Inc. v. United States, Fed. Cir., No. 2010-5031, 1/26/12] (Attached below)

CAS 412 and 413 have been revised to include the recognition of a “Minimum actuarial liability” and “minimum normal cost,” which are measured on a basis consistent with the liability measurement used to determine the Pension Protection Act (PPA) minimum required contribution. The rule also accelerates recognition of actuarial gains and losses and makes other changes to harmonize the CAS standards with the minimum required contributions established by the PPA amendments to the Employee Retirement Income Security Act.