Common use of Pension and Other Benefit Programs Clause in Contracts

Pension and Other Benefit Programs. (1) The Contractor shall become a sponsor of the pension and other benefit plans identified in paragraph (a), and shall be responsible for the management and administration of the Market-Based Plans and Legacy Plans identified in paragraphs (a)(4) and (5). (2) The Legacy Plans shall be managed and administered separately from the HSPP, HSSP, HEWT, and Market-Based Plans in a manner so as to preserve the Legacy Plans’ separate and distinct identities. (3) Unless otherwise required by applicable law or approved by the Contracting Officer, no implementation of a benefit program and no amendment to any of the plans identified in paragraph (a) or underlying trust documents thereto shall result in allowable costs under this Contract. (4) No presumption of allowability will exist when the Contractor implements a new benefit plan, or makes changes to existing benefit plans, identified in paragraph (a) above, that increase costs or are contrary to Departmental policy, as communicated by the Contracting Officer, or other written instruction or until the Contracting Officer makes a determination of cost allowability for reimbursement for new or changed benefit plans. Changes shall be in accordance with and pursuant to the terms and conditions of the contract. Advance notification, rather than approval, is required for changes that do not increase costs and are not contrary to Departmental policy, as communicated by the Contracting Officer, or other written instruction. (5) Cost reimbursement for pension and other benefit plans identified in paragraph (a) sponsored by the Contractor will be based on the Contracting Officer’s approval of Contractor actions pursuant to an approved Xxx-Xxx and an Employee Benefits Cost Study as described below. (6) Unless otherwise stated, or as directed by the Contracting Officer, the Contractor shall submit the studies required in (i) and (ii) below. The studies shall be used by the Contractor in calculating the cost of benefits under existing benefit plans. An Employee Benefits Value (Xxx-Xxx) Study Method using no less than 15 comparator organizations and an Employee Benefits Cost Survey Comparison method shall be used in this evaluation to establish an appropriate comparison method. In addition, the Contractor shall submit updated studies to the Contracting Officer for approval prior to the adoption of any change to a pension or other benefit plan which increases costs. (i) Separate Xxx-Xxx studies are required every two years for all plans identified in paragraph (a). A Xxx-Xxx is an actuarial study of the relative value (RV) of the benefits programs offered by the Contractor measured against the RV of benefit programs offered by the Contracting Officer approved comparator companies. To the extent that the value studies do not address post retirement benefits other than pensions, the Contractor shall provide a separate cost and plan design data comparison for the post retirement benefits other than pensions using external benchmarks derived from nationally recognized and Contracting Officer approved survey sources;and (ii) Separate Employee Benefits Cost Study comparisons are annually required for all plans identified in paragraph (a). An Employee Benefits Cost Study is a study which analyzes the Contractor’s employee benefits cost on a per capita per full time equivalent employee basis and as a percent of payroll and compares them with the costs reported by the U.S. Department of Labor’s Bureau of Labor Statistics or other Contracting Officer approved, broad based, national survey. (7) When net benefit value exceeds the comparator group by more than five (5) percent (%), the Contractor shall submit a corrective action plan to the Contracting Officer for approval, unless waived in writing by the Contracting Officer. (8) When the average total benefit per capita cost or total benefit cost as a percent of payroll exceeds the comparator group by more than 5%, and if required by the Contracting Officer, the Contractor shall submit an analysis of the specific plan costs that are above the per capita cost range or total benefit cost as a percent of payroll and a corrective action plan to achieve conformance with a Contracting Officer directed per capita cost range or total benefit cost as a percent of payroll, unless waived in writing by the Contracting Officer. (9) Within two (2) years of approval of the Contractor's corrective action plan by the Contracting Officer, the Contractor shall implement corrective action plans to align employee benefit programs with the benefit value and per capita cost range or percent of payroll as approved by the Contracting Officer. (10) The Contractor may not terminate any benefit plan during the term of the Contract without prior approval of the Contracting Officer in writing. (11) Cost reimbursement for Post Retirement Benefits (PRBs) is contingent on the specific terms of the plans identified in paragraph (a), as amended. Unless required by Federal or State law, advance funding of PRBs is not allowable. (12) All costs of administration shall be costs of each plan individually and allocated to participating plan sponsors. Costs of administration shall be directly billed to the plans and not charged by indirect allocation. (13) The Contractor shall maintain a sufficient number of trained and qualified personnel to perform all of the functions of the plans. (14) The Contractor shall render all ordinary and normal administrative services and functions which may be reasonably required. The Contractor shall annually provide an itemization of costs incurred for plan administration for each plan to the Contracting Officer within 60 days of the end of each plan year. (15) The Contractor shall manage Plan assets in a prudent manner. The Contractor shall develop and submit to the Contracting Officer an Investment Policy Statement for each plan that clearly defines investment return objectives and risk tolerances, and shall perform annual pension plan Investment Performance Self-Assessments. The Contractor performance self-assessments shall address investment objectives, development of the plans to achieve investment objectives, execution of the plans, performance monitoring, and appropriate corrective action planning and execution. The Contractor shall provide the Contracting Officer with a copy of each plan’s Investment Performance Self-Assessment. (16) The Contractor shall comply with the Investment Policy Statements developed for the plans. Should the Contractor incur higher costs because the Contractor fails to comply with all or part of the established Investment Policy Statements provided to DOE, the additional costs incurred are unallowable. (17) Each Contractor sponsoring a defined benefit pension plan and/or postretirement benefit plan will participate in the annual plan management process which includes written responses to a questionnaire regarding plan management, providing forecasted estimates of future reimbursements in connection with the plan(s) and participating in a conference call to discuss the Contractor submission (see (i)(8) below for Pension Management Plan requirements). (18) Each Contractor will respond to quarterly data calls issued through iBenefits, or its successor system. (19) Contractors shall submit new benefit plans and changes to plan design or funding methodology with justification to the Contracting Officer for approval, as applicable (see (h)(4) above). The justification must: i. demonstrate the effect of the plan changes on the contract net benefit value or per capita benefit costs, ii. provide the dollar estimate of savings or costs, and iii. provide the basis of determining the estimated savings or cost.

Pension and Other Benefit Programs. (1) The Contractor shall become a sponsor of the pension and other benefit plans identified in paragraph (a), and shall be responsible for the management and administration of the Market-Based Plans and Legacy Plans identified in paragraphs (a)(4) and (5). (2) The Legacy Plans shall be managed and administered separately from the HSPP, HSSP, HEWT, and Market-Based Plans in a manner so as to preserve the Legacy Plans’ separate and distinct identities. (3) Unless otherwise required by applicable law or approved by the Contracting Officer, no implementation of a benefit program and no amendment to any of the plans identified in paragraph (a) or underlying trust documents thereto shall result in allowable costs under this Contract. (4) No presumption of allowability will exist when the Contractor implements a new benefit plan, plan or makes changes to existing benefit plans, identified in paragraph (a) above, plans that increase costs or are contrary to Departmental policy, as communicated by the Contracting Officer, policy or other written instruction or until the Contracting Officer makes a determination of cost allowability for reimbursement for new or changed benefit plans. Changes shall be in accordance with and pursuant to the terms and conditions of the contract. Advance notification, rather than approval, is required for changes that do not increase costs and are not contrary to Departmental policy, as communicated by the Contracting Officer, policy or other written instruction. (52) Cost reimbursement for Employee pension and other benefit plans identified in paragraph (a) programs sponsored by the Contractor will be based on the Contracting Officer’s approval of Contractor actions pursuant to an approved Xxx-Xxx “Employee Benefits Value Study” and an “Employee Benefits Cost Study Survey Comparison” as described below. (63) Unless otherwise stated, or as directed by the Contracting Officer, the Contractor shall submit the studies required in paragraphs (iA) and (iiB) below. The studies shall be used by the Contractor in calculating the cost of benefits under existing benefit plans. An Employee Benefits Value (Xxx-Xxx) Study Method using no less than 15 comparator organizations and an Employee Benefits Cost Survey Comparison method comparison Method shall be used in this evaluation to establish an appropriate comparison method. In addition, the Contractor shall submit updated studies to the Contracting Officer for approval prior to the adoption of any change to a pension or other benefit plan which increases costs. (iA) Separate The Xxx-Xxx studies are required Xxx, every two three years for all plans identified in paragraph each benefit tier (ae.g., group of employees receiving a benefit package based on date of hire). A Xxx-Xxx , which is an actuarial study of the relative value (RV) of the benefits programs offered by the Contractor to Employees measured against the RV of benefit programs offered by comparator companies approved by the Contracting Officer approved comparator companiesOfficer. To the extent that the value studies do not address post retirement benefits other than pensions, the Contractor shall provide a separate cost and plan design data comparison for the post retirement benefits other than pensions using external benchmarks derived from nationally recognized and Contracting Officer approved survey sources;andsources and, (iiB) Separate Employee Benefits Cost Study comparisons are annually required for all plans identified in paragraph (a). An Employee Benefits Cost Study is a study which Comparison, annually for each benefittier that analyzes the Contractor’s employee benefits cost on a per capita per full time equivalent employee basis and for employees as a percent of payroll and compares them with the costs payroll, including geographic factor ad ustments, reported by the U.S. Department of Labor’s Bureau of Labor Statistics or other Contracting Officer approved, approved broad based, based national survey. (74) When the net benefit value exceeds the comparator group by more than five (5) percent (%)percent, the Contractor shall submit a corrective action plan to the Contracting Officer for approval, unless waived in writing by the Contracting Officer. (8) 5) When the average total benefit per capita cost or total benefit cost as a percent of payroll exceeds the comparator group by more than 5%five percent, when and if required by the Contracting Officer, the Contractor shall submit an analysis of the specific plan costs that are above result in or or contribute to the per capita cost range or total benefit cost as a percent of payroll exceeding the cost of the comparator group and submit a corrective action plan to achieve conformance with a Contracting Officer if directed per capita cost range or total benefit cost as a percent of payroll, unless waived in writing by the Contracting Officer... (96) Within two (2) years years, or longer period as agreed to between the Contractor and the Contracting Officer, of approval the Contracting Officer acceptance of the Contractor's corrective action plan by the Contracting Officerplan, the Contractor shall implement corrective action plans to align employee benefit programs with the benefit value and per capita the cost range or percent of payroll as approved by the Contracting Officer.in accordance with its corrective action plan.. (107) The Contractor may not terminate any benefit plan during the term of theContract without the Contract without prior approval of the Contracting Officer in writing. (11) 8) Cost reimbursement for Post Retirement Benefits post-retirement benefits other than pensions (PRBs) is contingent on the specific terms DOE approved service eligibility requirements for PRB that shall be based on a minimum period of the plans identified in paragraph (a), as amendedcontinuous employment service not less than 5 years under a DOE cost reimbursement contract(s) immediately prior to retirement. Unless required by Federal or State law, advance funding of PRBs is not allowable. (12) All costs of administration shall be costs of each plan individually and allocated to participating plan sponsors. Costs of administration shall be directly billed to the plans and not charged by indirect allocation. (13) The Contractor shall maintain a sufficient number of trained and qualified personnel to perform all of the functions of the plans. (14) The Contractor shall render all ordinary and normal administrative services and functions which may be reasonably required. The Contractor shall annually provide an itemization of costs incurred for plan administration for each plan to the Contracting Officer within 60 days of the end of each plan year. (15) The Contractor shall manage Plan assets in a prudent manner. The Contractor shall develop and submit to the Contracting Officer an Investment Policy Statement for each plan that clearly defines investment return objectives and risk tolerances, and shall perform annual pension plan Investment Performance Self-Assessments. The Contractor performance self-assessments shall address investment objectives, development of the plans to achieve investment objectives, execution of the plans, performance monitoring, and appropriate corrective action planning and execution. The Contractor shall provide the Contracting Officer with a copy of each plan’s Investment Performance Self-Assessment. (16) The Contractor shall comply with the Investment Policy Statements developed for the plans. Should the Contractor incur higher costs because the Contractor fails to comply with all or part of the established Investment Policy Statements provided to DOE, the additional costs incurred are unallowable. (179) Each Contractor sponsoring a defined benefit Defined Benefit pension plan and/or postretirement benefit plan will participate in the annual plan management process which includes written responses to a questionnaire regarding plan management, providing forecasted estimates of future reimbursements in connection with the plan(s) and participating in a conference call to discuss the Contractor submission (see (i)(8f)(6) below for Pension Management Plan requirements). (1810) Each Contractor will respond to quarterly data calls issued through iBenefits, or its successor system. (19) Contractors shall submit new benefit plans and changes to plan design or funding methodology with justification to the Contracting Officer for approval, as applicable (see (h)(4) above). The justification must: i. demonstrate the effect of the plan changes on the contract net benefit value or per capita benefit costs, ii. provide the dollar estimate of savings or costs, and iii. provide the basis of determining the estimated savings or cost.

Pension and Other Benefit Programs. (1) The Contractor shall become a sponsor of the pension and other benefit plans identified in paragraph (a), and shall be responsible for the management and administration of the Market-Based Plans and Legacy Plans identified in paragraphs (a)(4) and (5). (2) The Legacy Plans shall be managed and administered separately from the HSPP, HSSP, HEWT, and Market-Based Plans in a manner so as to preserve the Legacy Plans’ separate and distinct identities. (3) Unless otherwise required by applicable law or approved by the Contracting Officer, no implementation of a benefit program and no amendment to any of the plans identified in paragraph (a) or underlying trust documents thereto shall result in allowable costs under this Contract. (4) a. No presumption of allowability will exist when the Contractor implements a new benefit plan, plan or makes changes to existing benefit plans, identified in paragraph (a) above, plans that increase costs or are contrary to Departmental policy, as communicated by the Contracting Officer, policy or other written instruction or until the Contracting Officer CO makes a determination of cost allowability for reimbursement for new or changed benefit plans. Changes shall be in accordance with and pursuant to the terms and conditions of the contract. Advance notification, rather than approval, is required for changes that do not increase costs and are not contrary to Departmental policy, as communicated by the Contracting Officer, policy or other written instruction. To the extent that the Contractor has not submitted a new benefit plan or changes to existing benefit plans for approval on the basis that it does not increase costs and such new plan or change to existing plan does in fact increase costs, any increase in costs may be considered unreasonable and will likely be determined unallowable. (5) b. Cost reimbursement for employee pension and other benefit plans identified in paragraph (a) programs sponsored by the Contractor will be based on the Contracting OfficerCO’s approval of Contractor actions pursuant to an approved Xxx-Xxx “Employee Benefits Value Study” and an “Employee Benefits Cost Study Survey Comparison” as described below. (6) c. Unless otherwise stated, or as directed by the Contracting OfficerCO, the Contractor shall submit the studies required in paragraphs (i) and (ii) below, except for defined benefit plans that are closed to new entrants. The studies shall be used by the Contractor in calculating the cost of benefits under existing benefit plans. An Employee Benefits Value (Xxx-XxxBenVal) Study Method using no less than 15 comparator organizations and an Employee Benefits Cost Survey Comparison comparison method shall be used in this evaluation to establish an appropriate comparison method. In addition, the Contractor shall submit updated studies to the Contracting Officer CO for approval prior to the adoption of any change that increases the costs to a pension plan or other benefit plan which increases costsplan. (i) Separate Xxx-Xxx studies are required i. A BenVal, every two years for all plans identified in paragraph each benefit tier (ae.g., group of employees receiving a benefit package based on date of hire). A Xxx-Xxx , which is an actuarial study of the relative value (RV) of the benefits programs offered by the Contractor to Employees measured against the RV of benefit programs offered by the Contracting Officer CO approved comparator companies. To the extent that the value studies do not address post post-retirement benefits other than pensions, the Contractor shall provide a separate cost and plan design data comparison for the post retirement those benefits other than pensions using external benchmarks derived from nationally recognized and Contracting Officer CO-approved survey sources;andsources. (ii) Separate Employee Benefits Cost Study comparisons are annually required for all plans identified in paragraph (a). An Employee Benefits Cost Study is a study which Comparison, annually for each benefit tier that analyzes the Contractor’s employee benefits cost on a per capita per full time equivalent employee basis and for employees as a percent of payroll and compares them it with the costs cost as a percent of payroll, including geographic factor adjustments, reported by the U.S. Department of Labor’s Bureau of Labor Statistics or other Contracting Officer CO approved, broad based, national survey. (71) When the net benefit value exceeds the comparator group by more than five (5) percent (%)percent, the Contractor shall submit a corrective action plan to the Contracting Officer CO for approval, unless waived in writing by the Contracting OfficerCO. (8) 2) When the average total benefit per capita cost or total benefit cost costs as a percent of payroll exceeds the comparator group by more than 5%five percent, and if required by the Contracting OfficerCO, the Contractor shall submit an analysis of the specific plan costs that are above result in or contribute to the per capita cost range or total benefit cost as a percent of payroll exceeding the costs of the comparator group and submit a corrective action plan to achieve conformance with a Contracting Officer if directed per capita cost range or total benefit cost as a percent of payroll, unless waived in writing by the Contracting OfficerCO. (93) Within two (2) years of approval of years, or longer as agreed to between the Contractor's corrective action plan by Contractor and the Contracting Officer, of the Contracting Officer acceptance of the Contractor’s corrective action plan, the Contractor shall implement corrective action plans to align employee benefit programs with the benefit value and per capita the cost range or as a percent of payroll as approved by the Contracting Officerin accordance with its corrective action plan. (104) The Contractor may not terminate any benefit plan during the term of the Contract without the prior approval of the Contracting Officer CO in writing. (115) Cost reimbursement for Post Retirement Benefits post-retirement benefits other than pensions (PRBsPRB) is contingent on the specific terms DOE approved service eligibility requirements for PRBs that shall be based on a minimum period of the plans identified in paragraph (a), as amendedcontinuous employment service not less than five years under a DOE cost reimbursement contract(s) immediately prior to retirement. Unless required by Federal or State state law, advance funding of PRBs is not allowable. (12) All costs of administration shall be costs of each plan individually and allocated to participating plan sponsors. Costs of administration shall be directly billed to the plans and not charged by indirect allocation. (13) The Contractor shall maintain a sufficient number of trained and qualified personnel to perform all of the functions of the plans. (14) The Contractor shall render all ordinary and normal administrative services and functions which may be reasonably required. The Contractor shall annually provide an itemization of costs incurred for plan administration for each plan to the Contracting Officer within 60 days of the end of each plan year. (15) The Contractor shall manage Plan assets in a prudent manner. The Contractor shall develop and submit to the Contracting Officer an Investment Policy Statement for each plan that clearly defines investment return objectives and risk tolerances, and shall perform annual pension plan Investment Performance Self-Assessments. The Contractor performance self-assessments shall address investment objectives, development of the plans to achieve investment objectives, execution of the plans, performance monitoring, and appropriate corrective action planning and execution. The Contractor shall provide the Contracting Officer with a copy of each plan’s Investment Performance Self-Assessment. (16) The Contractor shall comply with the Investment Policy Statements developed for the plans. Should the Contractor incur higher costs because the Contractor fails to comply with all or part of the established Investment Policy Statements provided to DOE, the additional costs incurred are unallowable. (176) Each Contractor contractor sponsoring a defined benefit pension plan and/or postretirement benefit plan will participate in the annual plan management process which includes written responses to a questionnaire regarding plan management, providing forecasted estimates of future reimbursements in connection with the plan(s) and participating in a conference call to discuss the Contractor contractor submission (see (i)(8I)(g) below for Pension Management Plan requirements). (18) Each Contractor will respond to quarterly data calls issued through iBenefits, or its successor system. (19) Contractors shall submit new benefit plans and changes to plan design or funding methodology with justification to the Contracting Officer for approval, as applicable (see (h)(4) above). The justification must: i. demonstrate the effect of the plan changes on the contract net benefit value or per capita benefit costs, ii. provide the dollar estimate of savings or costs, and iii. provide the basis of determining the estimated savings or cost.

Pension and Other Benefit Programs. (1) The Contractor shall become a sponsor of the pension and other benefit plans identified in paragraph (a), and shall be responsible for the management and administration of the Market-Based Plans and Legacy Plans identified in paragraphs (a)(4) and (5). (2) The Legacy Plans shall be managed and administered separately from the HSPP, HSSP, HEWT, and Market-Based Plans in a manner so as to preserve the Legacy Plans’ separate and distinct identities. (3) Unless otherwise required by applicable law or approved by the Contracting Officer, no implementation of a benefit program and no amendment to any of the plans identified in paragraph (a) or underlying trust documents thereto shall result in allowable costs under this Contract. (4) No presumption of allowability will exist when the Contractor implements a new benefit plan, or makes changes to existing benefit plans, identified in paragraph (a) above, that increase costs or are contrary to Departmental policy, as communicated by the Contracting Officer, or other written instruction or until the Contracting Officer makes a determination of cost allowability for reimbursement for new or changed benefit plans. Changes shall be in accordance with and pursuant to the terms and conditions of the contract. Advance notification, rather than approval, is required for changes that do not increase costs and are not contrary to Departmental policy, as communicated by the Contracting Officer, or other written instruction. (5) Cost reimbursement for pension and other benefit plans identified in paragraph (a) sponsored by the Contractor will be based on the Contracting Officer’s approval of Contractor actions pursuant to an approved Xxx-Xxx and an Employee Benefits Cost Study as described below. (6) Unless otherwise stated, or as directed by the Contracting Officer, the Contractor shall submit the studies required in (i) and (ii) below. The studies shall be used by the Contractor in calculating the cost of benefits under existing benefit plans. An Employee Benefits Value (Xxx-Xxx) Study Method using no less than 15 comparator organizations and an Employee Benefits Cost Survey Comparison method shall be used in this evaluation to establish an appropriate comparison method. In addition, the Contractor shall submit updated studies to the Contracting Officer for approval prior to the adoption of any change to a pension or other benefit plan which increases costs. (i) Separate Xxx-Xxx studies are required every two years for all plans identified in paragraph H.2 (a) (1), (2), and (3). A Xxx-Xxx is an actuarial study of the relative value (RV) of the benefits programs offered by the Contractor measured against the RV of benefit programs offered by the Contracting Officer approved comparator companies. To the extent that the value studies do not address post retirement benefits other than pensions, the Contractor shall provide a separate cost and plan design data comparison for the post retirement benefits other than pensions using external benchmarks derived from nationally recognized and Contracting Officer approved survey sources;andsources; and (ii) Separate Employee Benefits Cost Study comparisons are annually required for all plans identified in paragraph H.2 (a) (1), (2), and (3). An Employee Benefits Cost Study is a study which analyzes the Contractor’s employee benefits cost on a per capita per full time equivalent employee basis and as a percent of payroll and compares them with the costs reported by the U.S. Department of Labor’s Bureau of Labor Statistics or other Contracting Officer approved, broad based, national survey. (7) When net benefit value exceeds the comparator group by more than five (5) percent (%), the Contractor shall submit a corrective action plan to the Contracting Officer for approval, unless waived in writing by the Contracting Officer. (8) When the average total benefit per capita cost or total benefit cost costs as a percent of payroll exceeds the comparator group by more than 5%five percent, when and if required by the Contracting Officer, the Contractor shall submit an analysis of the specific plan costs that are above result in or contribute to the per capita cost range or total benefit cost as a percent of payroll exceeding the costs of the comparator group and submit a corrective action plan to achieve conformance with a Contracting Officer if directed per capita cost range or total benefit cost as a percent of payroll, unless waived in writing by the Contracting Officer. (9) Within two (2) years of approval of years, or longer period as agreed to between the Contractor's corrective action plan by Contractor and the Contracting Officer, of the Contracting Officer acceptance of the Contractor’s corrective action plan, the Contractor shall implement corrective action plans to align employee benefit programs with the benefit value and per capita the cost range or as a percent of payroll as approved by the Contracting Officerin accordance with its corrective action plan. (10) The Contractor may not terminate any benefit plan during the term of the Contract without prior approval of the Contracting Officer in writing. (11) Cost reimbursement for Post Retirement Benefits (PRBs) is contingent on the specific terms of the plans identified in paragraph (a), as amended. Unless required by Federal or State law, advance funding of PRBs is not allowable. (12) All costs of administration shall be costs of each plan individually and allocated to participating plan sponsors. Costs of administration shall be directly billed to the plans and not charged by indirect allocation. (13) The Contractor shall maintain a sufficient number of trained and qualified personnel to perform all of the functions of the plans. (14) The Contractor shall render all ordinary and normal administrative services and functions which may be reasonably required. The Contractor shall annually provide an itemization of costs incurred for plan administration for each plan to the Contracting Officer within 60 days of the end of each plan year. (15) The Contractor shall manage Plan assets in a prudent manner. The Contractor shall develop and submit to the Contracting Officer an Investment Policy Statement for each plan that clearly defines investment return objectives and risk tolerances, and shall perform annual pension plan Investment Performance Self-Assessments. The Contractor performance self-assessments shall address investment objectives, development of the plans to achieve investment objectives, execution of the plans, performance monitoring, and appropriate corrective action planning and execution. The Contractor shall provide the Contracting Officer with a copy of each plan’s Investment Performance Self-Assessment. (16) The Contractor shall comply with the Investment Policy Statements developed for the plans. Should the Contractor incur higher costs because the Contractor fails to comply with all or part of the established Investment Policy Statements provided to DOE, the additional costs incurred are unallowable. (17) Each Contractor sponsoring a defined benefit pension plan and/or postretirement benefit plan will participate in the annual plan management process which includes written responses to a questionnaire regarding plan management, providing forecasted estimates of future reimbursements in connection with the plan(s) and participating in a conference call to discuss the Contractor submission (see (i)(8) below for Pension Management Plan requirements). (18) Each Contractor will respond to quarterly data calls issued through iBenefits, or its successor system. (19) Contractors shall submit new benefit plans and changes to plan design or funding methodology with justification to the Contracting Officer for approval, as applicable (see (h)(4) above). The justification must: i. demonstrate the effect of the plan changes on the contract net benefit value or per capita percentage of payroll benefit costs, ii. provide the dollar estimate of savings or costs, and iii. provide the basis of determining the estimated savings or cost.

Pension and Other Benefit Programs. (1) The Contractor shall become a sponsor of the pension and other benefit plans identified in paragraph (a), and shall be responsible for the management and administration of the Market-Based Plans and Legacy Plans identified in paragraphs (a)(4) and (5). (2) The Legacy Plans shall be managed and administered separately from the HSPP, HSSP, HEWT, and Market-Based Plans in a manner so as to preserve the Legacy Plans’ separate and distinct identities. (3) Unless otherwise required by applicable law or approved by the Contracting Officer, no implementation of a benefit program and no amendment to any of the plans identified in paragraph (a) or underlying trust documents thereto shall result in allowable costs under this Contract. (4) No presumption of allowability will exist when the Contractor implements a new benefit plan, or makes changes to existing benefit plans, identified in paragraph (a) above, that increase costs or are contrary to Departmental policy, as communicated by the Contracting Officer, or other written instruction or until the Contracting Officer makes a determination of cost allowability for reimbursement for new or changed benefit plans. Changes shall be in accordance with and pursuant to the terms and conditions of the contract. Advance notification, rather than approval, is required for changes that do not increase costs and are not contrary to Departmental policy, as communicated by the Contracting Officer, or other written instruction. (5) Cost reimbursement for pension and other benefit plans identified in paragraph (a) sponsored by the Contractor will be based on the Contracting Officer’s approval of Contractor actions pursuant to an approved Xxx-Xxx and an Employee Benefits Cost Study as described below. (6) Unless otherwise statedstated otherwise, or as directed by the Contracting Officer, the Contractor shall submit the studies required in (i) within 30 days of award or extension, and (ii) below. The studies shall be used by the Contractor in calculating the cost prior to implementation of benefits under existing any benefit plans. An Employee Benefits Value (Xxx-Xxx) Study Method using no less than 15 comparator organizations and an Employee Benefits Cost Survey Comparison method shall be used in this evaluation to establish an appropriate comparison method. In additionchange, the Contractor shall submit updated studies to the Contracting Officer for approval prior to the adoption of any change to a pension or other benefit plan which increases costs.(1) and (2) below: (i1) Separate XxxAn Employee Benefits Value Study (xxx-Xxx studies are required xxx) Measure, every two years for all plans identified in paragraph (a). A Xxx-Xxx years, which is an actuarial study of the relative value (RV) of the benefits programs offered by the Contractor measured against the RV of benefit programs offered by comparator companies approved by the Contracting Officer approved comparator companiesOfficer. To the extent that the value studies do study does not address post retirement benefits other than pensions, the Contractor shall provide a separate cost and plan design data comparison for the post retirement benefits other than pensions using external benchmarks derived from for nationally recognized and Contracting Officer approved survey sources;andsources and, (ii2) Separate Employee Benefits Cost Study comparisons are annually required for all plans identified in paragraph (a). An Employee Benefits Cost Study is a study which Comparison Analysis, annually, that analyzes the Contractor’s employee benefits cost on a per capita basis per full time equivalent employee basis and as a percent of payroll and compares them it with the costs cost reported by the U.S. Department Chamber of Labor’s Bureau of Labor Statistics Commerce Annual Employee Benefits Cost Survey or other Contracting Officer approved, approved broad based, based national survey. This information shall be submitted to the Contracting Officer in advance for approval of application of the changes under the contract and for a determination as to whether the costs incurred are consistent with the Contractor's documented program plan and are deemed allowable pursuant to FAR 31.205-6 as supplemented by DEAR 970.3102-05-6. (73) When net benefit value exceeds and/or per capita cost of the total benefits package exceed the comparator group by more than five (5) percent (%)5 percent, the Contractor shall submit a corrective action plan to the Contracting Officer for approvalplan, unless waived in writing when requested by the Contracting Officer. (8) When the average total benefit per capita cost or total benefit cost as a percent of payroll exceeds the comparator group by more than 5%, and if 4) As required by the Contracting Officer, the Contractor shall submit an analysis of the specific plan costs that are above the per capita cost range or total benefit cost as a percent of payroll and a corrective action plan to achieve conformance with a Contracting Officer directed per capita cost range or total benefit cost as a percent of payroll, unless waived in writing range. (5) Implement corrective action plans determined to be reimbursable by the Contracting Officer. (9) Within two (2) years of approval of the Contractor's corrective action plan by the Contracting Officer, the Contractor shall implement corrective action plans Officer to align employee benefit programs with the net benefit value and per capita cost range or percent of payroll as approved by the Contracting Officerwithin 2 years. (106) The Submit the Report on Contractor may not terminate any benefit plan during Expenditures for Supplementary Compensation for the term previous calendar year via the DOE Workforce Information System (WFIS) Compensation and Benefits Module no later than March 15 of the Contract without prior approval of the Contracting Officer in writing. (11) Cost reimbursement for Post Retirement Benefits (PRBs) is contingent on the specific terms of the plans identified in paragraph (a), as amended. Unless required by Federal or State law, advance funding of PRBs is not allowable. (12) All costs of administration shall be costs of each plan individually and allocated to participating plan sponsors. Costs of administration shall be directly billed to the plans and not charged by indirect allocation. (13) The Contractor shall maintain a sufficient number of trained and qualified personnel to perform all of the functions of the plans. (14) The Contractor shall render all ordinary and normal administrative services and functions which may be reasonably required. The Contractor shall annually provide an itemization of costs incurred for plan administration for each plan to the Contracting Officer within 60 days of the end of each plan current calendar year. (15) The Contractor shall manage Plan assets in a prudent manner. The Contractor shall develop and submit to the Contracting Officer an Investment Policy Statement for each plan that clearly defines investment return objectives and risk tolerances, and shall perform annual pension plan Investment Performance Self-Assessments. The Contractor performance self-assessments shall address investment objectives, development of the plans to achieve investment objectives, execution of the plans, performance monitoring, and appropriate corrective action planning and execution. The Contractor shall provide the Contracting Officer with a copy of each plan’s Investment Performance Self-Assessment. (16) The Contractor shall comply with the Investment Policy Statements developed for the plans. Should the Contractor incur higher costs because the Contractor fails to comply with all or part of the established Investment Policy Statements provided to DOE, the additional costs incurred are unallowable. (17) Each Contractor sponsoring a defined benefit pension plan and/or postretirement benefit plan will participate in the annual plan management process which includes written responses to a questionnaire regarding plan management, providing forecasted estimates of future reimbursements in connection with the plan(s) and participating in a conference call to discuss the Contractor submission (see (i)(8) below for Pension Management Plan requirements). (18) Each Contractor will respond to quarterly data calls issued through iBenefits, or its successor system. (19) Contractors shall submit new benefit plans and changes to plan design or funding methodology with justification to the Contracting Officer for approval, as applicable (see (h)(4) above). The justification must: i. demonstrate the effect of the plan changes on the contract net benefit value or per capita benefit costs, ii. provide the dollar estimate of savings or costs, and iii. provide the basis of determining the estimated savings or cost.

Pension and Other Benefit Programs. (1) The Contractor shall become a sponsor of the pension and other benefit plans identified in paragraph (a), and shall be responsible for the management and administration of the Market-Based Plans and Legacy Plans identified in paragraphs (a)(4) and (5). (2) The Legacy Plans shall be managed and administered separately from the HSPP, HSSP, HEWT, and Market-Based Plans in a manner so as to preserve the Legacy Plans’ separate and distinct identities. (3) Unless otherwise required by applicable law or approved by the Contracting Officer, no implementation of a benefit program and no amendment to any of the plans identified in paragraph (a) or underlying trust documents thereto shall result in allowable costs under this Contract. (43) No presumption of allowability will exist when the Contractor implements a new benefit plan, plan or makes changes to existing benefit plans, plans identified in paragraph (a) above, that increase costs or are contrary to Departmental policy, as communicated by the Contracting Officer, or other written instruction or until the Contracting Officer makes a determination of cost allowability for reimbursement for new or changed benefit plans. Changes shall be in accordance with and pursuant to the terms and conditions of the contract. Advance notification, rather than approval, is required for changes that do not increase costs and are not contrary to Departmental policy, as communicated by the Contracting Officer, or other written instruction. (54) Cost reimbursement for pension and other benefit plans identified in paragraph (a) sponsored by the Contractor will be based on the Contracting Officer’s approval of Contractor actions pursuant to an approved Xxx-Xxx and an Employee Benefits Cost Study as described below. (65) Unless otherwise stated, or as directed by the Contracting Officer, the Contractor shall submit the studies required in (i) and (ii) below. The studies shall be used by the Contractor as part of its performance self assessment described in paragraph (g)(4) and in calculating the cost of benefits under existing benefit plans. An Employee Benefits Value (Xxx-Xxx) Study Method using no less than 15 comparator organizations and an Employee Benefits Cost Survey Comparison method shall be used in this evaluation to establish an appropriate comparison method. In addition, the Contractor shall submit updated studies to the Contracting Officer for approval prior to the adoption of any change to a pension or other benefit plan which increases costsplan. (i) Separate Xxx-Xxx studies are required every two years for all plans identified in paragraph (a). A Xxx-Xxx is an actuarial study of the relative value (RV) of the benefits programs offered by the Contractor measured against the RV of benefit programs offered by comparator companies approved by the Contracting Officer approved comparator companiesOfficer. To the extent that the value studies do not address post retirement benefits other than pensions, the Contractor shall provide a separate cost and plan design data comparison for the post retirement benefits other than pensions using external benchmarks derived from nationally recognized and Contracting Officer approved survey sources;andsources; and, (ii) Separate Employee Benefits Cost Study comparisons are annually required for all plans identified in paragraph (a). An Employee Benefits Cost Study is a study which analyzes the Contractor’s employee benefits cost on a per capita per full time equivalent employee basis and as a percent of payroll and compares them with the costs reported by the U.S. Department Chamber of Labor’s Bureau of Labor Statistics Commerce Annual Employee Benefits Cost Survey or other Contracting Officer approved, broad based, national survey. (76) When net benefit value exceeds the comparator group by more than five (5) percent (%), the Contractor shall submit a corrective action plan to the Contracting Officer for approval, unless waived in writing by the Contracting Officer. (8) 7) When the average total benefit per capita cost or total benefit cost as a percent of payroll exceeds the comparator group by more than 55 %, and if required by the Contracting Officer, the Contractor shall submit an analysis of the specific plan costs that are above the per capita cost range or total benefit cost as a percent of payroll and a corrective action plan to achieve conformance with a Contracting Officer directed per capita cost range or total benefit cost as a percent of payroll, unless waived in writing by the Contracting Officer. (9) 8) Within two (2) years of approval of the Contractor's corrective action plan by the Contracting Officer, the Contractor shall implement corrective action plans to align employee benefit programs with the benefit value and per capita cost range or percent of payroll as approved by the Contracting Officer. (9) The Contractor shall submit a separate Report of Contractor Expenditures for Supplementary Compensation for the previous calendar year for each of the plans identified in paragraph (a) via the DOE WFIS Compensation and Benefits Module no later than March 1 of the current calendar year. (10) The Contractor may not terminate any benefit plan during the term of the Contract without prior approval of the Contracting Officer in writing. (11) Cost reimbursement for Post Retirement Benefits (PRBs) is contingent on the specific terms of the plans identified in paragraph (a), as amended. Unless required by Federal or State law, advance funding of PRBs is not allowable. (12) All costs of administration shall be costs of each plan individually and allocated to participating plan sponsors. Costs of administration shall be directly billed to the plans and not charged by indirect allocation. (13) The Contractor shall maintain a sufficient number of trained and qualified personnel to perform all of the functions of the plans. (14) The Contractor shall render all ordinary and normal administrative services and functions which may be reasonably required. The Contractor shall annually provide an itemization of costs incurred for plan administration for each plan to the Contracting Officer within 60 days of the end of each plan year. (15) The Contractor shall manage Plan assets in a prudent manner. The Contractor shall develop and submit to the Contracting Officer an Investment Policy Statement for each plan that clearly defines investment return objectives and risk tolerances, and shall perform annual pension plan Investment Performance Self-Assessments. The Contractor performance self-assessments shall address investment objectives, development of the plans to achieve investment objectives, execution of the plans, performance monitoring, and appropriate corrective action planning and execution. The Contractor shall provide the Contracting Officer with a copy of each plan’s Investment Performance Self-Self- Assessment. (16) The Contractor shall comply with the Investment Policy Statements developed for the plans. Should the Contractor incur higher costs because the Contractor fails to comply with all or part of the established Investment Policy Statements provided to DOE, the additional costs incurred are unallowable. (17) Each Contractor sponsoring a defined benefit pension plan and/or postretirement benefit plan will participate in the annual plan management process which includes written responses to a questionnaire regarding plan management, providing forecasted estimates of future reimbursements in connection with the plan(s) and participating in a conference call to discuss the Contractor submission (see (i)(8) below for Pension Management Plan requirements). (18) Each Contractor will respond to quarterly data calls issued through iBenefits, or its successor system. (19) Contractors shall submit new benefit plans and changes to plan design or funding methodology with justification to the Contracting Officer for approval, as applicable (see (h)(4) above). The justification must: i. demonstrate the effect of the plan changes on the contract net benefit value or per capita benefit costs, ii. provide the dollar estimate of savings or costs, and iii. provide the basis of determining the estimated savings or cost.

Pension and Other Benefit Programs. (1) The Contractor shall become a sponsor of the pension and other benefit plans identified in paragraph (a), and shall be responsible for the management and administration of the Market-Based Plans and Legacy Plans identified in paragraphs (a)(4) and (5). (2) The Legacy Plans shall be managed and administered separately from the HSPP, HSSP, HEWT, and Market-Based Plans in a manner so as to preserve the Legacy Plans’ separate and distinct identities. (3) Unless otherwise required by applicable law or approved by the Contracting Officer, no implementation of a benefit program and no amendment to any of the plans identified in paragraph (a) or underlying trust documents thereto shall result in allowable costs under this Contract. (4) No presumption of allowability will exist when the Contractor implements a new benefit plan, plan or makes changes to existing benefit plans, identified in paragraph (a) above, that increase costs or are contrary to Departmental policy, as communicated by the Contracting Officer, or other written instruction or plans until the Contracting Officer makes a determination of cost allowability for reimbursement for new or changed benefit plans. Changes shall be in accordance with and pursuant to the terms and conditions of the contract. Advance notification, rather than approval, is required for changes that do not increase costs and are not contrary to Departmental policy, as communicated by the Contracting Officer, or other written instruction. (52) Cost reimbursement for pension and other benefit plans identified in paragraph (a) programs sponsored by the Contractor will be based on the Contracting Officer’s approval of Contractor actions pursuant to an approved Xxx-Xxx “Employee Benefits Value Study” and an “Employee Benefits Cost Study Survey Comparison” as described below. (63) Unless otherwise stated, or as directed by the Contracting Officer, the Contractor shall submit the studies required in paragraphs (ia) and (iib) below. The studies shall be used by the Contractor as part of its performance self assessment described in Paragraph (d)(4) above and in calculating the cost of benefits under existing benefit plans. An Employee Benefits Value (Xxx-Xxx) Study Method using no less than 15 comparator organizations and an Employee Benefits Cost Survey Comparison method shall be used in this evaluation to establish an appropriate comparison method. In addition, the Contractor shall submit updated studies to the Contracting Officer for approval prior to the adoption of any change to a pension or other benefit plan which increases costsplan. (ia) Separate An Employee Benefits Value Study (Xxx-Xxx studies are required Xxx), every two years each for all plans identified in paragraph (a). A XxxGrandfathered Employees and Non-Xxx Grandfathered Employees benefits, which is an actuarial study of the relative value (RV) of the benefits programs offered by the Contractor to Grandfathered Employees and Non-Grandfathered Employees measured against the RV of benefit programs offered by comparator companies approved by the Contracting Officer approved comparator companiesOfficer. To the extent that the value studies do not address post retirement benefits other than pensions, the Contractor shall provide a separate cost and plan design data comparison for the post retirement benefits other than pensions using external benchmarks derived from nationally recognized and Contracting Officer approved survey sources;andsources; and (iib) Separate Employee Benefits Cost Study comparisons are annually required for all plans identified in paragraph (a). An Employee Benefits Cost Study is a study which Comparison, annually each for Grandfathered Employees and Non-Grandfathered Employees, that analyzes the Contractor’s employee benefits cost for Grandfathered Employees and Non-Grandfathered Employees on a per capita basis per full time equivalent employee basis and as a percent of payroll and compares them it with the costs cost reported by the U.S. Department Chamber of Labor’s Bureau of Labor Statistics Commerce Annual Employee Benefits Cost Survey or other Contracting Officer approved, approved broad based, based national survey. (74) When the net benefit value exceeds the comparator group by more than five (5) percent (%)percent, the Contractor shall submit a corrective action plan to the Contracting Officer for approval, unless waived in writing by the Contracting Officer. (8) 5) When the average total benefit per capita cost or total benefit cost as a percent of payroll exceeds the comparator group by more than 5%five percent, when and if required by the Contracting Officer, the Contractor shall submit an analysis of the specific plan costs that are above the per capita cost range or total benefit cost as a percent of payroll and a corrective action plan to achieve conformance with a Contracting Officer directed per capita cost range or total benefit cost as a percent of payroll, unless waived in writing by the Contracting Officer. (96) Within two (2) years of Contracting Officer approval of the Contractor's corrective action plan by the Contracting Officerplan, the Contractor shall implement corrective action plans to align employee benefit programs with the benefit value and per capita cost range or percent of payroll as approved by the Contracting Officer. (107) The Contractor shall submit the Report of Contractor Expenditures for Supplementary Compensation for the previous calendar year via the DOE Workforce Information System (WFIS) Compensation and Benefits Module no later than March 1 of the current calendar year. (8) The Contractor may not terminate any benefit plan during the term of the Contract contract without the prior approval of the Contracting Officer in writing. (119) Cost reimbursement for Post Retirement Benefits (PRBs) is contingent on DOE approved service eligibility requirements for PRBs that shall be based on a minimum period of continuous employment service not less than five years under a DOE cost-reimbursement contract(s) immediately prior to retirement. Notwithstanding the specific terms previous sentence, the costs of PRBs will be reimbursed for individuals meeting the DOE-approved eligibility requirements of the plans identified in paragraph (a), as amendedapplicable DOE- approved employee benefit plan. Unless required by Federal or State state law, advance funding of PRBs is not allowable. (12) All costs of administration shall be costs of each plan individually and allocated to participating plan sponsors. Costs of administration shall be directly billed to the plans and not charged by indirect allocation. (13) The Contractor shall maintain a sufficient number of trained and qualified personnel to perform all of the functions of the plans. (14) The Contractor shall render all ordinary and normal administrative services and functions which may be reasonably required. The Contractor shall annually provide an itemization of costs incurred for plan administration for each plan to the Contracting Officer within 60 days of the end of each plan year. (15) The Contractor shall manage Plan assets in a prudent manner. The Contractor shall develop and submit to the Contracting Officer an Investment Policy Statement for each plan that clearly defines investment return objectives and risk tolerances, and shall perform annual pension plan Investment Performance Self-Assessments. The Contractor performance self-assessments shall address investment objectives, development of the plans to achieve investment objectives, execution of the plans, performance monitoring, and appropriate corrective action planning and execution. The Contractor shall provide the Contracting Officer with a copy of each plan’s Investment Performance Self-Assessment. (16) The Contractor shall comply with the Investment Policy Statements developed for the plans. Should the Contractor incur higher costs because the Contractor fails to comply with all or part of the established Investment Policy Statements provided to DOE, the additional costs incurred are unallowable. (17) Each Contractor sponsoring a defined benefit pension plan and/or postretirement benefit plan will participate in the annual plan management process which includes written responses to a questionnaire regarding plan management, providing forecasted estimates of future reimbursements in connection with the plan(s) and participating in a conference call to discuss the Contractor submission (see (i)(8) below for Pension Management Plan requirements). (18) Each Contractor will respond to quarterly data calls issued through iBenefits, or its successor system. (19) Contractors shall submit new benefit plans and changes to plan design or funding methodology with justification to the Contracting Officer for approval, as applicable (see (h)(4) above). The justification must: i. demonstrate the effect of the plan changes on the contract net benefit value or per capita benefit costs, ii. provide the dollar estimate of savings or costs, and iii. provide the basis of determining the estimated savings or cost.