An employer records a net pension liability related to its defined contribution arrangements in much the same manner as it records its net pension liability for its defined benefit arrangements.

Question

Quizplus · Accepted Answer

An employer does not record a net pension liability for defined contribution arrangements. Generally, an employer only records a liability related to defined contribution pensions, if, at the end of its fiscal year, the employer has not made all of its annual agreed upon contributions to the employees' accounts.

An Employer Records a Net Pension Liability Related to Its