Plan Assets
Funding Pension Benefits
Employers contribute cash to pension trusts that invest the funds to pay future retirement benefits. These investments are called plan assets and are measured at fair value.
- Employer contributions.
- Investment returns.
- Benefit payments reduce plan assets.
- Measured at fair value.
Note
Plan assets belong to the pension trust, not directly to the employer.
Summary
Plan assets are funds set aside to pay future pension benefits.