A government has a single-employer defined benefit pension plan for its firefighters. At its December 31, 2019 fiscal year-end, the government had a total pension liability for the plan of $1,200,000 and the related pension's plan net position was $800,000. On December 31, 2020, the government had a total pension liability for the plan of $1,300,000 and the related pension's plan net position was $780,000.
What is the government's net pension liability in its government-wide financial statements on December 31, 2019?

Question

Quizplus · Accepted Answer

The net pension liability is the total pension liability less the related pension plan's net position. In this case, the total pension liability on December 31, 2019 ($1,200,000) less the related pension plan's net position ($800,000) is $400,000.

A Government Has a Single-Employer Defined Benefit Pension Plan for Its