Cast Inc. is finding that its employees are switching to defined contribution plans by forfeiting their defined benefit plans. Cast Inc. has been able to measure the actuarial present value of this amendment. How will this affect pension expense in current and future periods?

a.Pension expense will increase immediately.

b.Prior service cost will decrease and, as prior service cost is amortized, future pension expense will decrease.

c.It will not have any impact on pension expense until the employees retire.

d.Pension expense will decrease immediately.

e.Prior service cost will increase and, as prior service cost is amortized, future pension expense will increase.