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Lincoln County Firefighters' Pension Plan

The basic financial statements of a pension plan provide only limited amounts of information as to its economic condition. The following information relates to the Lincoln County Firefighters' Pension Plan (dollar amounts in millions):

Beginning-of-Year Balances

Cash and cash equivalents, January 1 $ 67
Marketable securities and other
investments at fair value, January 1 3,180
Current liabilities to retirees, January 1 4
Actuarial accrued liability, January 1 3,430

Transactions during the Year

Contributions received during the year
from employers and employees 138

Benefits to which retirees were entitled during
the year 120
Benefits actually paid to retirees, including
amounts owed from prior year 122

Interest and dividends
earned during the year 145

Net appreciation in fair value of marketable
securities and other investments (i.e., realized
and unrealized gains) during the year 36

Investment and administrative expenses 45

End-of-Year Balances

Cash on hand, December 31 92

Marketable securities and other
investments at fair value, December 31 3,307

Current liabilities to retirees, December 31 2
Actuarial accrued liability, December 31 3,690

1. Prepare a statement of plan net assets available for benefits (balance sheet) as of January 1. You may not have to include all of the data provided.

2. Prepare a statement of changes in plan net assets available for benefits (statement of activities) for the year.

3. Prepare a statement of plan net assets available for benefits (balance sheet) as of December 31.

Solution Summary

This tutorial provides statements of changes in plan net assets available for pension benefits.

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