A government has a defined contribution plan for its General Fund employees. During the year, it contributed $1,080,000 to its employees' individual defined contribution retirement accounts. At its fiscal year-end, the government still owes $180,000 to its employees' individual defined contribution retirement accounts according to the benefit terms of the defined contribution plan. How much should the government report as its pension liability at its fiscal year-end?

Question

Quizplus · Accepted Answer

The liability is the amount of the unpaid required pension contributions at year-end of $180,000. These contributions are due and payable at year-end.

A Government Has a Defined Contribution Plan for Its General