Required supplementary schedules provide the actuarial information necessary to assess a plan€™s fiscal status.

The following information was reported in the schedule of funding progress of a state€™s Police Officers Pension Plan. Dollar amounts are in millions.

The plan€™s schedule of employer contributions indicated that the employers€™ annual required contribution was $106 million in 2013 and $100 million in 2012. In both years, the employers contributed 100% of those amounts.
1. Based on the limited data available, do you think that the fiscal health of the plan improved in 2013? Explain, citing the specific factors you took into account and telling why they are significant.
2. Suppose you were asked to prepare a schedule explaining the change in the value of assets. What factors might account for increases and decreases in this amount?
3. Suppose that you were asked to prepare a schedule explaining the change in the actuarial accrued liability. What factors might account for increases and decreases in this amount?
4. What is the total amount that employers should report as pension expenditures in2013?

Transcribed Image Text:

Valuation Date December 31 2013 2012 $2,41 $2,005 Value of assets (a) Actuarial accrued liability (b) Unfunded actuarial $2,902 s2,626 accrued liability (-a $491 Funded ratio (a/b) Covered payroll (c) Unfunded actuarial 83 % S957 $621 76% %902 accrued liability as a percent of covered payroll ((b-a)/c) 51% 69%