Question

Employer contributions to a public employee retirement system (PERS) should be reported as

a. An addition to net position of the PERS.
b. An expense of the General Fund for employees paid by the General Fund.
c. Another financing use of a proprietary fund for employees paid by a proprietary fund.
d. A revenue of the PERS.

Answer 1

Employer contributions to a public employee retirement system should be reported as an addition to net position of the retirement system.

Step-by-step explanation:

Employer contributions to a public employee retirement system (PERS) should be reported as a. An addition to net position of the PERS.

When an employer contributes to a public employee retirement system, it increases the net position of the retirement system. This contribution is not an expense of the General Fund or a financing use of a proprietary fund, nor is it a revenue of the retirement system itself.