What is the purpose of the Schedule of Changes in Net Pension Liability and Related Ratios?

The Schedule of Changes in Net Pension Liability and Related Ratios serves the crucial purpose of providing an overview of pension liabilities. This schedule presents detailed information about the changes in the net pension liability over a specified period, which includes contributions, benefit payments, and the impact of changes in actuarial assumptions.

In addition to showing the net pension liability at the beginning and end of the period, it also highlights any significant alterations during the reporting period, thus helping users better understand how these liabilities are evolving. Providing this information assists in transparency and accountability, allowing stakeholders to assess the financial status of the pension plan and the obligations that the government entity must meet in the future.

This overview is essential for users, such as creditors or constituents, who are interested in understanding the financial health of the pension system and how well the government is managing its pension obligations.