Governments with defined benefit pension plans will report a net pension liability in the government-wide Statement of Net Position if the amount the government anticipates paying to employees in the future is greater than the net fiduciary position of the pension trust fund.

Question

Quizplus · Accepted Answer

The net pension liability is the amount that a government anticipates paying to current employees in the future in excess of the resources currently accumulated for that purpose. The government-wide Statement of Net Position reports the net pension liability for employees engaged in governmental and business-type activities. The General and other governmental funds do not recognize long-term obligations. Governmental funds should report a liability for pensions in the fund-basis statements only to the extent the liability is expected to be paid with current financial resources.

Governments with Defined Benefit Pension Plans Will Report a Net