Economic Pension/ Total Periodic Pension expense- Footnotes?

[abnitchas]

The bottom line is that the plain vanilla defined benefit in the CFAI material is NOT an unfunded pension plan but rather the opposite. The only time a company has to write a check is to make a contribution into the plan asset (cash outflow); the plan asset is manage by some asset manager who then pays benefit to employees.

 

[Stevie Ray]

Wow. Seems you are correct, what a tricky f’n question! Very unintuitive. Wasn’t sure about this b/c I remembered about the financing vs. operating cash flow concept, but in the end decided to go with “common sense” (you would think the OUTflow is the money paid OUT)