A plan net position is directly tied to the employer's net pension liability. The CAFR of North Orange included the statement of fiduciary net position for its employee pension plan presented here: North Orange Employee Pension Plan Statement of Fiduciary Net Position June 3, 2018 (Dollar amounts in thousands) Assets Cash and cash equivalents............................................ $ 140,279 Receivables: Contributions............................................................... 13,285 Investment income......................................................... 8,100 Total receivables.......................................................... 21,385 Investments: Fixed income securities................................................ 1,111,088 Domestic equity securities............................................. 2,345,543 International equities..................................................... 870,240 Real estate.................................................................. 511,112 Total investments........................................................ 4,837,983 Total assets............................................................... 4,999,647 Liabilities Investment fees payable...................................................... 2,890 Due to broker for investments purchase................................. 230,555 Benefits payable to retirees................................................. 59,231 Total liabilities............................................................. 292,676 Net position restricted for pensions.................................. $4,706,971 1. A note to the statement indicated that the plan net position was 75 percent of the North Orange (the employer) total pension liability. From this limited amount of information, can you tell how much North Orange would report as its net pension liability? 2. In light of your response to question #1, how do you explain that benefits payable to retirees are only $59,231? 3. Suppose the city reduced its discount rate from 7.75% to 7.50%. How would that reduction affect the pension plan's net position? 4. Suppose the city were to sell common stock for $1,500,000 that it had acquired for $1,000,000. How would such a sale affect the pension liability as reported on the balance sheet of North Orange?