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Pension Expense
The cost recognized by an employer for maintaining a defined benefit pension plan for its employees.
Defined Benefit Plans
Pension plans that promise a specified retirement benefit amount, which is determined by factors such as salary history and duration of employment.
Interest Cost Component
The portion of pension expense that represents the increase in the projected benefit obligation due to the passage of time.
Projected Benefit Obligation
An estimate of the total amount an entity is obligated to pay in pension benefits, based on expected future salary increases.
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