288 Government Finance Statistics Manual 2014
Table A2.3 Illustrative Recording of Flows Related to Employment-Related Pension Schemes
Description Debit Credit
3.1 The government makes pension contributions on behalf of its employees to an autonomous pension fund
maintained by an insurance company (i.e., it is part of the private fi nancial corporation sector)
Government pays social
contributions as component of
compensation of employees2121 Actual employers’ social
contributions3212 / 3318 Currency and deposits /
Other accounts payable^13.2 The government makes pension contributions on behalf of its employees to an autonomous pension fund set up by
government as a separate institutional unit (i.e., it is part of the public fi nancial corporation sector)
Government pays social
contributions as component of
compensation of employees2121 Actual employers’ social
contributions3212 / 3318 Currency and deposits /
Other accounts payable^13.3 The government operates a funded nonautonomous pension fund for its employees (i.e., a separate reserve is
maintained in the government account but it is not an institutional unit)
Government pays social
contributions as component of
compensation of employees2121 Actual employers’ social
contributions3212 / 3318 Currency and deposits /
Other accounts payable^1Receipts of social contributions by
the pension fund account giving
rise to a liability3212 / 3218 Currency and deposits /
Other accounts
receivable^13316 Insurance, pension, and
standardized guarantee
schemes
Government, as owner of
the pension fund account,
receives property income on the
investments of the pension fund3212 / 3218 Currency and deposits /
Other accounts
receivable^11411 / 1412 Interest
DividendsGovernment attributes the
property income to the policy
holders^22813 Property expense for
investment income
disbursements3316 Insurance, pension, and
standardized guarantee
schemes
Government provides pension
benefi t payments to eligible
benefi ciaries3316 Insurance, pension, and
standardized guarantee
schemes3212 / 3318 Currency and deposits /
Other accounts payable^13.4 Government operates an unfunded nonautonomous pension fund for its employees (i.e., there are no actual
contributions and no separate reserve is maintained in the government account)
Government provides pension
benefi t payments to eligible
benefi ciaries: cash basis of recording2731 Employment-related
social benefi ts in cash3212 Currency and depositsImputed social contributions as
component of compensation
of employees: accrual basis of
recording2122 Imputed employers’
social contributions3316 Insurance, pension, and
standardized guarantee
schemesGovernment provides pension benefi t
payments to eligible benefi ciaries:
accrual basis of recording3316 Insurance, pension, and
standardized guarantee
schemes3212 / 3318 Currency and deposits /
Other accounts payable^1Government recognizes the
increase in liability for benefi t
entitlements due to time passing2813 Property expense for
investment income
disbursements3316 Insurance, pension, and
standardized guarantee
schemes
3.5 All defi ned-benefi t schemes can also be subject to other economic fl ows
Pension liabilities increase due to
unilateral changes in conditions
of the scheme5 Other changes in the
volume of assets and
liabilities5316 Insurance, pension, and
standardized guarantee
schemes
Pension liabilities increase due to
changes in interest rates used to
calculate the present value of the
liability4 Holding gains/losses 4316 Insurance, pension, and
standardized guarantee
schemes(^1) In a cash reporting environment, the revenue/expense will be recorded at the time of the cash fl ow. In an accrual reporting environment,
an other account receivable/payable should be recorded in cases where the payment is not made when the eligibility criteria have been met.
(^2) These disbursements will primarily be reinvested in the fund as social contributions, while the portion that will meet the cost of operating
the fund should be recorded as the purchases of a fi nancial service from the pension fund.