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FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.215-18 Reversion or Adjustment of Plans for Postretirement Benefits (PRB) Other Than Pensions.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This clause requires a contractor to notify the Contracting Officer in writing when it decides to terminate or reduce benefits under a postretirement benefits (PRB) plan other than pensions. If PRB fund assets revert or inure to the contractor, the contractor must refund or credit the Government its equitable share, with the recovery method chosen by agreement or, failing that, designated by the Contracting Officer.

Applies to: Contractors with postretirement benefit plans other than pensions, and their subcontracts meeting FAR 15.408(j)

What it requires

  • Promptly notify the Contracting Officer in writing when determining that it will terminate or reduce the benefits of a PRB plan
  • Make a refund or give a credit to the Government for its equitable share if PRB fund assets revert or inure to the Contractor, or are constructively received by it
  • Insert the substance of this clause in all subcontracts that meet the applicability requirements of FAR 15.408(j)

Key terms: PRB plan · equitable share · reversion · constructive receipt · method of recovery

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As prescribed in 15.408(j), insert the following clause:

Reversion or Adjustment of Plans for Postretirement Benefits (PRB) Other Than Pensions (JUL 2005)

(a) The Contractor shall promptly notify the Contracting Officer in writing when the Contractor determines that it will terminate or reduce the benefits of a PRB plan.

(b) If PRB fund assets revert or inure to the Contractor, or are constructively received by it under a plan termination or otherwise, the Contractor shall make a refund or give a credit to the Government for its equitable share as required by 31.205-6(o)(5) of the Federal Acquisition Regulation (FAR). When determining or agreeing on the method for recovery of the Government's equitable share, the contracting parties should consider the following methods: cost reduction, amortizing the credit over a number of years (with appropriate interest), cash refund, or some other agreed upon method. Should the parties be unable to agree on the method for recovery of the Government's equitable share, through good faith negotiations, the Contracting Officer shall designate the method of recovery.

(c) The Contractor shall insert the substance of this clause in all subcontracts that meet the applicability requirements of FAR 15.408(j).

(End of clause)

Sections it refers to

  • 15.408 Solicitation provisions and contract clauses.
  • 31.205-6 Compensation for personal services.

Sections that refer to it

  • 15.408 Solicitation provisions and contract clauses.

← 52.215-17 Waiver of Facilities Capital Cost of Money. · 52.215-19 Notification of Ownership Changes. →

Rule changes for FAR Part 52

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 52.215-18 Reversion or Adjustment of Plans for Postretirement Benefits (PRB) Other Than Pensions · SpendQuery