In Pension Accounting, the Employer's Net Pension Liability

question 38

Multiple Choice

In pension accounting, the employer's net pension liability:

• A) Is measured as the total pension liability less the amount of fiduciary net position held for future pension payments.
• B) Represents the portion of the present value of projected benefit payments to be provided through the pension plan to current active and inactive employees that is attributed to those employees' past periods of service.
• C) Is the same as the net pension obligation.
• D) Is based on actuarial valuations generally required to be performed at least every five years.

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Definitions:

Devise Ways

To create or design methods, strategies, or plans to achieve a particular goal or solve a problem.

Increase Likelihood

Enhancing the probability or chance of a particular event or outcome occurring.

Persuasion

The process of convincing someone to do or believe something through reasoning or the use of temptation.

Norm Of Reciprocity

A social norm that suggests individuals respond to each other in kind, returning benefits for benefits received.