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Explain the following terms: role perception and role expectation.
Funded Status
The financial metric used to evaluate the financial health of a pension plan, indicating the difference between the plan assets and liabilities.
Defined Benefit Plan
A type of pension plan where the employer guarantees a specified pension payment in retirement, based on factors like salary history and duration of employment.
Defined Contribution Plan
A type of retirement plan in which the employer, employee, or both make contributions on a regular basis, but the future payout is not defined.
Pension Expense
The cost recognized by an employer for contributions to a defined benefit pension plan based on formulas that factor in salary, years of service, and other elements.
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