If an agency offers early retirement to its employees (and the offer is accepted), then the agency has created a pension liability. Pension payable entries required Full Accrual Funds – Entry to record the : Debit 61402 Retirement Other – Credit 2604 Pension Payable Non Current – Entry to record the payment: Debit 2604 Pension Payable Non Current – Credit 1104 Cash Adjustment needed at fiscal year-end to record the amount that will be paid during the next fiscal year: Debit 2604 Pension Payable Non Current – Credit 2624 Pension Payable Current – This entry should then be reversed after fiscal year-end. Pension payable entries required Modified Accrual Funds – Entry to ecord the : (ecorded in the Ledger.) Debit 61402 Retirement Other – Credit 2604 Pension Payable Non Current – Entry to ecord the ayment: (To be recorded in the Ledger Debit 61402 Retirement Other – Credit 1104 Cash (ecorded in the Ledger.) Debit 2604 Pension Payable Non Current – Credit 61402 Retirement - Other
If an agency offers early retirement to its employees (and the offer is accepted), then the agency has created a pension liability. Pension payable entries required – Full Accrual Funds Entry to record the : Debit 61402 Retirement – Other Credit 2604 Pension Payable – Non Current Entry to record the payment: Debit 2604 Pension Payable – Non Current Credit 1104 Cash Adjustment needed at fiscal year-end to record the amount that will be paid during the next fiscal year: Debit 2604 Pension Payable – Non Current Credit 2624 Pension Payable – Current This entry should then be reversed after fiscal year-end. Pension payable entries required – Modified Accrual Funds Entry to ecord the : (ecorded in the Ledger.) Debit 61402 Retirement – Other Credit 2604 Pension Payable – Non Current Entry to ecord the ayment: (To be recorded in the Ledger Debit 61402 Retirement – Other Credit 1104 Cash (ecorded in the Ledger.) Debit 2604 Pension Payable – Non Current Credit 61402 Retirement - Other
340%20Long%20Term%20Liabilities.docx