The schedules presented below and on the following page show employer contributions and funding progress from the 2011 financial statements of the City of Houston for Houston Municipal Pension System. All dollar amounts are as indicated.
1. Did Houston have a pension problem? If so, what are the key indicators of that problem?
2. As of July 1, 2010, the fund reported an unfunded actuarial accrued liability of $1,359.4 million dollars. Of this amount, how much would have been reflected on the general fund balance sheet? How much would have been reflected on the government-wide statement of net position?
3. Did Houston contribute to the plan the amount required by actuarial calculations?
4. Is it likely that in the period covered by the schedules Houston changed the plan so as to increase the benefits provided to employees when they retire? How can you tell?
5. What is the most likely reason that the actuarial value of plan assets decreased between July 1, 2009 and July 1, 2010?