Why this is mistaken
Wrong: A defined contribution plan creates a PBO and funded-status liability.
Correction: The employer normally recognizes required contribution cost and an unpaid contribution, subject to the plan terms and applicable guidance.
Where to watch
When this mistake may appear
- A benefit-plan analysis treats this claim as true: A defined contribution plan creates a PBO and funded-status liability.
Check your work
Your work may contain this mistake if:
- A defined contribution plan creates a PBO and funded-status liability.