In a defined-contribution plan, an employer only recognizes pension expense for the amount that the employer is required to contribute under the plan.

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This is because in a defined-contribution plan, the employer's contribution is predetermined and fixed, and the pension benefits are based on the investment returns of the plan assets, as opposed to a defined-benefit plan where the employer is responsible for the funding shortfall or surplus. Therefore, the employer's pension expense is equal to the amount contributed to the plan.

In a Defined-Contribution Plan, an Employer Only Recognizes Pension Expense