In financial reporting for proprietary funds and at the government-wide level,the employer's pension expense for the period is equal to:

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Annual pension cost is the total pension cost for the period, including service cost, interest cost, and any gains or losses. This is the amount that represents the employer's pension expense for the period for reporting purposes. The employer's contribution may not necessarily be equal to the expense for the period, as it could be higher or lower depending on various factors. The annual required contribution is the amount that the actuary determines the employer should contribute to the plan in order to fully fund the benefits. The change in net pension obligation is a measure of the change in the pension liability over the course of the period and does not represent the employer's pension expense for the period.

In Financial Reporting for Proprietary Funds and at the Government-Wide