Andreas42

it is not cash flow and economic pension expense.
It is when there is a difference between economic pension expense and the Employer’s contribution, which the analyst should adjust to reflect on the cash flows.
If EPE (Eco. Pension Exp.)  Employer’s Contribution
the difference is basically an extra loan available to the company. So CFO would be reduced by and CFF increased by EPE - EC)*(1-T)
If EPE Difference is a repayment of principal - an overall reduction in the pension obligation.