Contractor Insurance/Pension Review Team

Contractor Insurance/Pension Review Team (CIPR) is the DoD Contracting Officer's resource for requesting an evaluation of a contractor's pension and insurance costs, on either an incurred or projected basis.  

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WHAT WE DO

CIPR MISSION STATEMENT

To ensure Contractor’s insurance and pension programs achieve fair and reasonable prices by providing actuarial/insurance/pension expertise. Additionally, the CIPR Center aids in the review of actuarial/insurance/pension data in support of contract management, auditing and legal issues for the Department of Defense and other agencies.

OVERVIEW

The CIPR Team is a small team of actuarial and insurance professionals focusing on pension and insurance Cost Accounting Standards (CAS) requirements. Our objective is to apply our knowledge of actuarial cost principles and methods to answer technical questions, solve problems and evaluate fringe benefit costs and pricing. We do not perform audits. Areas of expertise include:

  • CAS 412/413 Pensions and Post-Retirement Benefits (PRB)
  • Health & Welfare (H&W) Group Insurance CAS 416
  • Property & Casualty (P&C) Insurance CAS 416
  • Self-Insurance approval FAR 28.308
  • Indemnification

Protecting USG's Exposure to Contractor Pension/Insurance Risk

  • Pension benefit and insurance costs may comprise between 5% to 15% of contract costs, with variability of risk exposure for potential losses.
  • Pension and Post-Retirement Benefits – forms of deferred compensation - benefits earned while working, to be received in years after employment.
  • Insurance Coverage – Health and Welfare - covers workers and their dependents
  • Insurance Coverage - Property and Casualty (Risk) -covers liability, property and workers on the clock.
  • Review Scope - CIPR reviews pension and insurance program costs for order and reasonability of magnitude, and reasonability of assumptions and methods used in the cost development.
  • Review Objective - CIPR evaluates actuarial assumptions and methodologies used in insurance and pension calculations (at the plan or program level) to ensure that they are reasonable, in accordance with accepted actuarial principles, and compliant with CAS/FAR.
  • CIPR also reviews Indemnification request proposals for policies in-force and coverage levels.