If a pension plan has not established an irrevocable trust to account for defined benefit pension plan contributions and distributions, a government participating in the plan would report its net pension liability in its proprietary fund and government-wide financial statements.

Question

Quizplus · Accepted Answer

If a pension or OPEB plan has not established an irrevocable trust in which its assets are legally protected from the creditors and dedicated to providing pension or OPEB benefits to retirees, participating governments are required to report the total pension or OPEB liability in its proprietary fund and government-wide financial statements. There are no assets to net against the liability.

If a Pension Plan Has Not Established an Irrevocable Trust