Which of the following is false concerning the statement of changes in plan net assets for a public employee retirement system?

The statement of changes in plan net assets is a critical financial report for public employee retirement systems, detailing the movement in net assets over a specific period.

The correct answer indicates that administrative expenses should not include investment-related expenses. This is because administrative expenses and investment expenses are typically categorized separately in financial statements. Administrative expenses often pertain to the general operations of the retirement system, whereas investment expenses relate specifically to the management and oversight of the investment portfolio. By distinguishing between these two categories, the retirement system enhances transparency and provides a clearer picture of the costs associated with administering the plan versus those incurred to manage its assets.

Therefore, the categorization of these expenses is essential for accurate financial reporting and analysis within public employee retirement systems. This ensures stakeholders have a complete understanding of where funds are being utilized and supports more informed decision-making based on the financial health of the retirement system.