A city's annual required contribution for the OPEB plan offered to their General Fund employees is $14,000. The city does not choose to make the annual required contribution but instead will continue to pay postretirement benefits as they come due. The current year's benefit payments total $2,500. The General Fund would recognize an expenditure of

Question

Quizplus · Accepted Answer

Since the city has chosen not to make the annual required contribution, the only expenditure recognized in the current year is the actual benefit payments made. Therefore, the General Fund would recognize an expenditure of $2,500.

A City's Annual Required Contribution for the OPEB Plan Offered