6. Mint Limited promises a 60-year-old employee, Mrs Pear, 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 Pear's 60th birthday is on 1 January 2015 and her 2015 yearly salary is 75,000, to increase at 5% compound each year. The discount rate is 10% per annum. There is assumed to be a 20% probability that Mrs Pear will leave Mint Limited before 1 January 2020. On 1 January 2016, the company revises its actuarial assumptions, so that Mrs Pear's salary should increase by 15% per annum rather than 5% and the probability of Mrs Pear leaving before her scheduled retirement falls to 10%. The obligation is not funded. Required: (a) What are defined contribution and defined benefit plans? (4 marks) (b) Calculate the total pension cost that Mint Limited would recognise in the profit and loss section of the income statement for the year 31 December 2016. (11 marks) (c) Calculate the actuarial loss for 2016 which would be recorded in other comprehensive income. (5 marks) (Total 20 marks)