Employer contribution < Total pension cost, how to adjust cash flows?

CFA Level II FRA
#1

A simple example and ignore taxes.

The total pension cost is 100, employer contribution is 80.

Before adjustment: CFO outflow of 80

After adjustment: CFO outflow of 100 and CFF inflow of 20

Is that correct?

#2

Yup.

#3

Thanks!

#4

My pleasure.