Final answer:
The pension reporting category referring to governments acting as trustees is "reporting fiduciary net position". Employers offering pensions must contribute to the Pension Benefit Guarantee Corporation to secure pension benefits in case of company bankruptcy. Defined contribution plans like 401(k)s are replacing traditional pensions, shifting retirement savings responsibilities to employees.
Step-by-step explanation:
The category of pension reporting that only applies to governments that act as trustees is called "reporting fiduciary net position". When a government is responsible for pension assets that are not its own and has a fiduciary duty to manage them on behalf of others, such as employees of a different governmental entity, it must use this category in its financial statements.
Pension insurance ensures that employers who offer pensions must contribute a portion to the Pension Benefit Guarantee Corporation. This is crucial because if a company goes bankrupt and cannot pay the pensions it promised, the corporation will step in to cover at least some of the pension benefits.
Given the rising popularity of defined contribution plans like 401(k)s and 403(b)s, the responsibilities and risks of saving for retirement are increasingly shifting from employers to employees. These defined contribution plans allow employees to invest in a wide range of investment vehicles, and these accounts are tax-deferred and portable across employers.