New Accounting Rule Could Cost DoD Billions

February 27, 2012

The Pentagon may pay billions of dollars more for weapons programs in coming years because of an obscure new federal accounting rule.

The rule, which takes effect this week, requires the U.S. government to reimburse its contractors to a far greater degree for their employee pension costs.

The Defense Department has not yet budgeted for the additional pension costs, but estimates they "could be billions of dollars, conceivably," Defense Department Comptroller Robert Hale told "This Week In Defense News" on Feb. 23. 

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