Which of the following statements is TRUE about the pension (and other employee benefit) trust fund?

The statement about the pension (and other employee benefit) trust fund that is true is that it includes assets held for payment of future Other Post-Employment Benefits (OPEB).

Pension trust funds are designed specifically to accumulate resources for paying pension benefits and can also include provisions for other employee benefits, such as post-retirement health care. The funds are held in trust and managed separately from other government funds to ensure there are adequate resources to meet future obligations. This function is essential as it allows public entities to manage their liabilities and fund the future benefits promised to employees, indicating a forward-thinking approach to employee benefits.

In contrast, the other statements amplify misconceptions about trust funds. The trust fund is not limited to tracking only unamortized acquisition costs, nor is it the sole fund type recognized for public entities, as there are various fund types depending on the activities of the government entity. Additionally, the assertion that it does not involve risks or liabilities is misleading; in fact, pension trust funds deal directly with significant financial liabilities and investment risks related to the obligations they support. Therefore, recognizing the role of the trust fund in managing current and future liabilities related to employee benefits is crucial.