6. Bear Limited promises a 60-year-old employee, Mrs Bottle, who will retire at 65, a lump-sum retirement package equal to 1% of final salary multiplied by the number of years of service. Mrs Bottle's 60th birthday is on 1 January 2022 and her 2022 annual salary is 50,000, to increase at 5% compound each year. The discount rate is 10% per annum. There is assumed to be a 20% probability that Mrs Bottle will leave Bear Limited before 1 January 2026, Mrs Bottle's scheduled retirement date. On 1 January 2022, the company revises its actuarial assumptions, so that Mrs Bottle's salary should increase by 15% per annum rather than 5% and the probability of Mrs Bottle leaving before her scheduled retirement falls to 10%. The obligation is not funded. Required: (a) What are defined contribution and defined benefit plans? (2 marks) (b) (i) Calculate the opening pension obligation as at 31 December 2022 . (ii) Calculate the total pension cost that Bear Limited would recognise in the profit and loss section of the income statement for the year 31 December 2022. (12 marks) Discuss 2 advantages and 2 disadvantages of FRS 17 on retirement benefits