Employer journal entry for Defined Benefit Pension
Employer
The city of Stewart has a single-employer defined benefit pension plan to provide retiree pension benefits to its Electric Utility Enterprise Fund employees. The plan is administered in a trust that meets the GASB requirements. The city of Stewart contributed $1,280,000 cash to the pension plan during the fiscal year ending December 31, 2022.
Assume that the actuary for the city of Stewart’s Electric Utility Enterprise Fund measures its net pension liability on December 31, 2022, which is its fiscal year-end. The actuary provides the following additional information in its reporting package to the city of Stewart’s accounting department for its use in preparing the Electric Utility Enterprise Fund’s December 31, 2022 financial statements.
| Actuarial Provided Account Information | ||
|---|---|---|
| Fiscal Year Ending | Fiscal Year Ending | |
| December 31, 2021 | December 31, 2022 | |
| Net pension liability | $4,880,000 | $4,960,000 |
| Deferred inflow of resources—investment gain | 144,000 | 72,000 |
| Deferred inflow of resources—demographic factors | 168,000 | 144,000 |
| Deferred outflow of resources—economic factors | 320,000 | 280,000 |
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