Based on the GASB's proposed new pension accounting standard,the net pension liability is:

Question

Quizplus · Accepted Answer

The GASB's proposed new pension accounting standard defines the net pension liability as the present value of projected benefit payments that is attributable to employees' past periods of service, less the related pension plan's net position. It takes into account the difference between the pension plan's assets and the projected benefit payments owed to retirees. Option A is not correct because the unfunded annual required contribution is the amount of money needed to cover the pension plan's contribution for one fiscal year, not the net pension liability. Option B is incorrect because it only represents the pension benefit that is due to retirees during one fiscal year, not the net pension liability. Option D is not correct because the actuarial present value of projected retiree pension benefits is already included in the calculation of the net pension liability.

Based on the GASB's Proposed New Pension Accounting Standard,the Net