The City of Columbus has approximately 2,000 employees. For the past three decades, the city has provided its employees with a defined benefit pension plan. The plan contract calls for specific payment amounts to be made to each retiree based on a set formula. Money is transferred periodically to a pension trust fund where it is accumulated and invested so that eventual payments can be made.
a. Describe how the city determines the amount (if any) of a net pension liability that should be reported within its government-wide financial statements. b. Describe how the city determines the amount (if any) of pension expense that should be reported within its government-wide financial statements. c. How is the pension reported in the fund financial statements for the governmental funds?
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