©EVERLY 2025 ALL RIGHTS RESERVED
NFP Exam #2 Chapter 8 Study Guide 100%
Verified.
Agency Funds - ANS Funds consisting of resources received and held by the government as
an agent for others. (i.e. collecting taxes) Sometimes resources held by a government for other
organizations are handled through an agency fund known as a pass-through agency fund.
Agent Multiple Employer Pension Plan - ANS A pension plan under which plan assets of
numerous employers are pooled for investment purposes but accounts are maintained for the
individual employer participants.
Cost-Sharing Multiple-Employer Pension Plan - ANS A pension plan under which the pension
obligations of many employers are pooled. The plan assets can be used to pay the benefits to
employees of any employer that provides pensions through the pension plan.
Covered Payroll - ANS The amount of payroll on which contributions to a pension plans are
based.
Defined Benefit Plan - ANS A pension plan that provides a specified amount of benefits based
on a formula that may include factors such as age, salary, and years of employment.
Defined Contribution Plan - ANS A pension plan that specifies the amount or rate of
contribution, often a percentage of covered salary, that the employer and employees must
contribute to the members' accounts.
, ©EVERLY 2025 ALL RIGHTS RESERVED
Derivatives - ANS A financial instrument or other contract that has one or more reference
rates and one or more notional amounts (i.e. face amount), requires little or no initial
investment, and requires or permits net settlement.
External Investment Pool - ANS Centrally managed investment portfolios (pools) that
manage the investments of participants (i.e. other governments and NFP organizations) outside
the reporting entity of the government that administers the pool.
Investment Trust Funds - ANS Funds used to account for the assets, liabilities, net position,
and changes in net position corresponding to the equity of the external participants.
Multiple-Employer Pension Plans - ANS Pension plans under which benefits are provided to
the employees of more than one employer.
Net Pension Liability - ANS The difference between the total pension liability and plan
fiduciary net position.
Other Postemployment Benefits (OPEB) - ANS Benefits, other than pensions, provided to
employees subsequent to employment. Included would be items such as health care and life
insurance.
Public Employee Retirement Systems (PERS) - ANS The organizations that collect retirement
and other employee benefit contributions from government employers and employees,
manage assets, and make payments to qualified retirants, beneficiaries, and disabled
employees.
Service Cost - ANS The portion of the actuarial present value of projected pension benefit
payments that is attributed to the current year.
Single-Employer Pension Plan - ANS Pension plan under which benefits are provided only to
employees of the employer.
NFP Exam #2 Chapter 8 Study Guide 100%
Verified.
Agency Funds - ANS Funds consisting of resources received and held by the government as
an agent for others. (i.e. collecting taxes) Sometimes resources held by a government for other
organizations are handled through an agency fund known as a pass-through agency fund.
Agent Multiple Employer Pension Plan - ANS A pension plan under which plan assets of
numerous employers are pooled for investment purposes but accounts are maintained for the
individual employer participants.
Cost-Sharing Multiple-Employer Pension Plan - ANS A pension plan under which the pension
obligations of many employers are pooled. The plan assets can be used to pay the benefits to
employees of any employer that provides pensions through the pension plan.
Covered Payroll - ANS The amount of payroll on which contributions to a pension plans are
based.
Defined Benefit Plan - ANS A pension plan that provides a specified amount of benefits based
on a formula that may include factors such as age, salary, and years of employment.
Defined Contribution Plan - ANS A pension plan that specifies the amount or rate of
contribution, often a percentage of covered salary, that the employer and employees must
contribute to the members' accounts.
, ©EVERLY 2025 ALL RIGHTS RESERVED
Derivatives - ANS A financial instrument or other contract that has one or more reference
rates and one or more notional amounts (i.e. face amount), requires little or no initial
investment, and requires or permits net settlement.
External Investment Pool - ANS Centrally managed investment portfolios (pools) that
manage the investments of participants (i.e. other governments and NFP organizations) outside
the reporting entity of the government that administers the pool.
Investment Trust Funds - ANS Funds used to account for the assets, liabilities, net position,
and changes in net position corresponding to the equity of the external participants.
Multiple-Employer Pension Plans - ANS Pension plans under which benefits are provided to
the employees of more than one employer.
Net Pension Liability - ANS The difference between the total pension liability and plan
fiduciary net position.
Other Postemployment Benefits (OPEB) - ANS Benefits, other than pensions, provided to
employees subsequent to employment. Included would be items such as health care and life
insurance.
Public Employee Retirement Systems (PERS) - ANS The organizations that collect retirement
and other employee benefit contributions from government employers and employees,
manage assets, and make payments to qualified retirants, beneficiaries, and disabled
employees.
Service Cost - ANS The portion of the actuarial present value of projected pension benefit
payments that is attributed to the current year.
Single-Employer Pension Plan - ANS Pension plan under which benefits are provided only to
employees of the employer.
