A city's annual pension expense representsactual cash contributions to the pension trust fund.required payments to retired employees per the terms of the pension plan.

1. normal cost, as determined by an appropriate actuarial method.change during that year in the city's net pension liability, subject to various adjustments.

1. The amount that a city should recognize as its pension expenditure in a governmental fund would bethe contribution to the pension fund to be liquidated with expendable available financial resources.the change in the net pension liability.required payments to retired employees per the terms of the pension plan.normal cost, as determined by an appropriate actuarial method.
2. A government employer's net pension liability (the amount to be reported on its accrual‐based balance sheets) refers to
   1. the difference between the benefit plan's net position and the total pension liability as computed by an appropriate actuarial method.
   2. the total amount expected to be paid to current and retired employees computed by an appropriate actuarial method.
   3. the share of the total amount to be paid to current and retired employees, computed by an appropriate actuarial method, that has been earned by those employees to date.
   4. the difference between the total amount to be paid to current and retired employees, computed by an appropriate actuarial method, and the amount that has actually been paid to them.
3. Which of the following would not be reported on a plan's statement of fiduciary net position?
   1. Obligations to retired employees that are past due
   2. Plan investments at fair value
   3. Actuarial accrued liabilities
   4. Contributions receivable from employers
4. A defined benefit plan is one in which
   1. the employer promises specified payments to employees on their retirement.
   2. the specific provisions are defined by the Internal Revenue Code.
   3. the specific provisions are defined by the Uniform Code of Retirement Plans.
   4. the employee can specify the mix of benefits (e.g., health, pension, insurance) that will be received on retirement.
5. A pension plan in which the employees of all participating governments are placed in a common pool and in which the employers share all risks and costs and make contributions at the same rate is known as a
   1. multiple‐employer agent plan.
   2. multiple‐employer cost sharing plan.
   3. multiple employer consolidated actuarial plan.
   4. single consolidated multiple‐employer plan.
6. The rate used to discount future benefits should be based on
   1. the government's marginal borrowing rate.
   2. an index of tax‐exempt bonds rated AA.
   3. an index of taxable bonds rated AA.
   4. a “blended” rate that takes into account, as appropriate, the government's expected rate of return on plan assets and the yield on high‐quality municipal bonds.
7. The GASB requires that the difference between actual and expected earnings on plan investments be
   1. charged immediately to a revenue or expense account as appropriate.
   2. charged immediately to an asset or liability account as appropriate.
   3. amortized over a period of five years.
   4. amortized over the average remaining service lives of plan participants.
8. The means of allocating pension costs over years of participant service is known as
   1. an actuarial contribution allocation method.
   2. an actuarial cost method.
   3. a participant‐cost assignment method.
   4. a pension distribution method.
9. Which of the following is not typically taken into account by actuaries in calculating pension expense?
   1. Mortality rates
   2. Employee turnover rates
   3. Projected salary increases
   4. Projected trends in costs of health care

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