Retiree Benefits

Our employees are eligible to participate in the federal government retirement programs, including pension and retiree health benefits. We are required to provide funding for those plans as determined by the administrator of the plan, the Office of Personnel Management (OPM). We cannot direct the costs, benefits, or funding requirements of these federally sponsored plans. In accordance with our parent-subsidiary type relationship with the federal government, we account for our participation in these plans using multiemployer plan accounting rules in accordance with ASC 715 (formerly FAS 87, Employers’ Accounting for Pension Costs, and formerly FAS 106, Employers’ Accounting for Postretirement Benefits Other Than Pensions). We account for the cost of our employees’ participation in these programs as an expense in the period our contribution is due and payable. These amounts can fluctuate significantly from year to year if changes in funding requirements are made. As more fully described in Note 5, Subsequent Events, Note 10, Health Benefit Programs, and Note 11, Retirement Programs, in the Notes to the Financial Statements. P.L.109-435 and P.L 111-68 significantly impacted our costs associated with these programs.