Actuarial Determined Contribution

A target or recommended contribution to a defined benefit pension plan for the reporting period, determined in conformity with Actuarial Standards of Practice based on the most recent measurement available when the contribution for the reporting period was adopted.

Agent multiple-employer pension plans

Plans in which plan assets are pooled for investment purposes but separate accounts are maintained for each individual employer so that each employer’s share of the pooled assets is legally available to pay the benefits of only its employees.

Cost-sharing multiple-employer pension plans 

Plans in which the pension obligations to the employees of more than one employer are pooled and plan assets can be used to pay the benefits of the employees of any employer that provides pensions through the pension plan.

Deferred Inflows of Resources

An acquisition of net assets by the government that is applicable to a future reporting period; has a negative effect on net position, similar to liabilities.

Deferred Outflows of Resources

A consumption of net assets by the government that is applicable to a future reporting period; has a positive effect on net position, similar to assets.

Discount Rate

Per Statement No. 67, a blended or single rate (expressed as a percentage) that reflects (1) the long-term expected rate of return on pension plan investments to the extent (a) this rate will support projected benefit payments of the plan, and, (b) assets will be invested using the current allocation target to achieve that return, and (2) for the period of benefit payments not supported, will incorporate an index rate for 20-year-tax-exempt municipal bonds. FPPA can use the long-term expected rate of return on pension investments assumption of 7.5% as the single discount rate throughout for GASB purposes.

Employer’s Proportion

A measure of the proportionate relationship of an employer of a cost-sharing pension plan.

Measurement Date

The date that the Net Pension Liability is measured. For FPPA the measurement date is January 1.

Net Pension Liability (NPL)

The difference between the Total Pension Liability of the Plan and the Pension Plan’s Fiduciary Net Position.

Pension Expense

Changes in FPPA’s Net Pension Liability, recognized in the current reporting period. There are some exceptions that include changes due to differences between expected and actual experience, changes in economic and demographic assumptions, and the difference between projected and actual earnings on pension plan investments.

Pension Plan’s Fiduciary Net Position

FPPA plan net assets at fair value.

Proportionate Share

For cost sharing plans - Measures of the collective Net Pension Liability, collective Pension Expense and other disclosure items of the plan related to pensions — attributable to a specific employer, based on the Employer’s Proportion.

Total Pension Liability (TPL)

The actuarial present value of projected benefit payments that is attributed to past periods of member service, similar to current Actuarial Accrued Liability (AAL), determined under the Entry Age Actuarial Cost Method.

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