What should a paying government in a special funding situation treat the plan as?

In a special funding situation, if a paying government is the only contributor to a pension plan, it can be treated as a single-employer plan. This classification is appropriate because a single-employer plan is defined by having one employer that has the sole responsibility for funding and maintaining the pension obligations. When there are no other contributing entities involved, the risks and benefits associated with the plan remain solely with that single employer, aligning perfectly with the characteristics of a single-employer setup.

This treatment simplifies the accounting and reporting requirements, allowing the government to manage the plan based solely on its specific funding situation, liabilities, and contributions without the complications that arise in multi-employer scenarios where multiple parties share responsibility and risk. Thus, the focus remains on the unique obligations and situation of the paying government as the sole contributor.