Note X – Pension and/or OPEB Plans - Defined Contribution

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Significant Changes to Note X – Pension and/or OPEB Plans - Defined Contribution

Note X - Pension and OPEB Defined Contribution

Updates, changes, and clarifications for disclosing pensions made throughout.

Note X – Pension and/or OPEB Plans - Defined Contribution

A template for this note is not available. See “Instructions to preparer:” for various disclosures that may be required.

Instructions to preparer:

These requirements are only applicable to plans if the employer contributions. Governments can choose to disclose plans that only employees contribute to but must make it clear that the employer does not contribute.

The following information should be disclosed in notes to financial statements about each defined contribution pension and/or OPEB plan to which the employer contributes:

  • The name of the plan, identification of the entity that administers the plan, and identification of the plan as a defined contribution pension or OPEB plan,

  • A brief description of the benefit terms (including terms, if any, related to vesting and forfeitures and the policy related to the use of forfeited amounts) and the authority under which benefit terms are established or may be amended,

  • If the plan is administered through a qualifying trust, the contribution (or crediting) rates (in dollars or as a percentage of salary) for employees, the employer, and non-employer contributing entities, if any, and the authority under which those rates are established or may be amended,

  • If the plan is not administered through a qualifying trust:

  • The fact that there are no assets accumulated in a qualifying trust, and each criterion that the trust does not meet, should be disclosed.

  • Identification of the authority under which requirements for the employer to pay pensions or OPEB as the benefits come due are established or may be amended. Also, the amount paid by the employer for pensions or OPEB as the benefits came due during the reporting period, if not otherwise disclosed.

  • The amount of pension or OPEB expense recognized by the employer in the reporting period,

  • The amount of forfeitures reflected in pension or OPEB expense recognized by the employer in the reporting period,

  • The amount of the employer’s liability outstanding at the end of the period, if any.