Chapter 8 Flashcards
Funds consisting of resources received and held by the government as an agent for others; for example, taxes collected and held by a municipality for a school district. Note: Sometimes resources held by a government for other organizations are handled through an custodial fund known as a pass-through custodial fund.
Custodial Funds
A pension plan under which plan assets of numerous employers are pooled for investment purposes but accounts are maintained for the individual employer participants.
Agent Multiple Employer Pension Plan
A pension plan under which the pension obligations of many employers are pooled. The plan assets can be used to pay the benefits to employees of any employer that provides pensions through the pension plan.
Cost sharing Multiple Employer Pension Plan
The amount of payroll on which contributions to a pension plan are based.
Covered Payroll
A pension plan that provides a specified amount of benefits based on a formula that may include factors such as age, salary, and years of employment.
Defined Benefit Plan
A pension plan that specifies the amount or rate of contribution, often a percentage of covered salary, that the employer and employees must contribute to the members’ accounts.
Defined Contribution Plan
A financial instrument or other contract that has one or more reference rates and one or more notional amounts (e.g., face amount), requires little or no initial investment, and requires or permits net settlement.
Derivative
Centrally managed investment portfolios (pools) that manage the investments of participants (e.g., other governments and not for profit organizations) outside the reporting entity of the government that administers the pool.
External Investment Pool
Funds used to account for the assets, liabilities, net position, and changes in net position corresponding to the equity of the external participants.
Investment Trust Funds
Pension plans under which benefits are provided to the employees of more than one employer.
Multiple employer Pension Plan
The difference between the total pension liability and plan fiduciary net position.
Net Pension Liability
Benefits, other than pensions, provided to employees subsequent to employment. Included would be items such as health care and life insurance.
Other Postemployment Benefits (OPEB)
The organizations that collect retirement and other employee benefit contributions from government employers and employees, manage assets, and make payments to qualified retirants, beneficiaries, and disabled employees.
Public Employee Retirement Systems (PERS)
The portion of the actuarial present value of projected pension benefit payments that is attributed to the current year.
Service Cost
Pension plan under which benefits are provided only to employees of the employer.
Single Employer Pension Plan
