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Costs funded following the six month period (or a later period decided to by the cognizant agency for indirect costs) are allowable in the year funded. Amounts funded by the non-Federal entity more than the actuarially motivated amount for a fiscal calendar year may be used as the non-Federal entity’s contribution in future intervals. THE GOVERNMENT must get an equitable share of any previously allowed pension costs (including profits thereon) which revert or inure to the non-Federal entity in the form of a refund, withdrawal, or other credit.
Post-Retirement Health. Post-retirement health programs (PRHP) refers to costs of medical health insurance or health services not included in a pension plan covered by paragraph (g) of the section for retirees and their spouses, dependents, and survivors. PRHP costs may be computed using a pay-as-you-go method or an acceptable actuarial cost method in accordance with established written procedures of the non-Federal entity.
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For PRHP financed on the pay-as-you-go method, allowable costs will be limited to those representing actual obligations to retirees or their beneficiaries. PRHP costs calculated using an actuarial cost method recognized by GAAP are allowable if they are funded for your year within half a year after the end of this year. Costs funded after the six-month period (or a later period agreed to by the cognizant company) are allowable in the year funded. Amounts funded in excess of the actuarially driven amount for a fiscal year can be utilized as the non-Federal entity contribution in a future period.
An insurance company or trustee to keep up a trust to finance or reserve for the only real purpose of providing post-retirement advantages to retirees and other beneficiaries. Federal entity in the form of a refund, withdrawal, or other credit. Severance Pay. (1) Severance pay, commonly known as dismissal wages also, is a payment in addition to regular wages and wages, by non-Federal entities to workers whose employment is being terminated. Measurement of costs of abnormal or mass severance pay by means of an accrual won’t achieve equity to both parties.