How should employers' contributions to a pension plan be reflected in the schedule of employer contributions?

Employers' contributions to a pension plan should be reflected in the schedule of employer contributions both in dollars and as a percentage of annual required contributions to provide a comprehensive view of the funding status and obligations of the pension plan.

Reporting in dollars gives a clear and straightforward representation of the actual monetary contributions made to the pension plan during the reporting period. This amount helps stakeholders understand the actual cash flow related to pension funding.

In addition, expressing contributions as a percentage of annual required contributions offers valuable insight into the employer's funding strategy. This percentage reflects how well the employer is meeting its obligation to fund the pension plan based on the actuarial determined contributions. It provides context for evaluating whether the employer is consistently contributing enough to stay on track with pension funding requirements.

By including both the actual dollar amount and the percentage of annual required contributions, the schedule provides a clearer picture of the employer's commitment to funding the pension plan, enabling better financial analysis and decision-making.