Which statement is true about the funding progress schedule for OPEB plans using the aggregate actuarial cost method?

The statement regarding the funding progress schedule for OPEB (Other Post-Employment Benefits) plans using the aggregate actuarial cost method is accurate. Under this method, a funding progress schedule is specifically required for OPEB plans to provide financial transparency regarding the liabilities associated with these benefits. This requirement underscores the importance of recognizing and reporting the financial obligations towards post-employment benefits beyond pensions, ensuring that stakeholders understand the organization’s long-term commitments.

The aggregate actuarial cost method emphasizes the overall funding status and helps entities track the sufficiency of their funding over time. By requiring a funding progress schedule, it enables easier comparison of current funding levels against the projected future obligations. This practice enhances the accountability and financial stewardship associated with managing OPEB liabilities, which can often be significant and complex.

While pension plans also have their own funding progress requirements, the key aspect here is that OPEB plans explicitly require a funding progress schedule under the aggregate actuarial cost method, which highlights the importance of such disclosures in financial reporting for benefit obligations.