Under a defined contribution pension plan, forfeitures are estimated in advance.

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Under a defined contribution pension plan, forfeitures are not estimated in advance because contributions are defined and allocated to individual accounts, so there are no future benefits to estimate forfeitures for. Forfeitures typically occur in defined benefit plans or in the context of non-vested contributions in defined contribution plans when an employee leaves before becoming fully vested.

Under a Defined Contribution Pension Plan, Forfeitures Are Estimated in Advance