You are studying with some classmates and one of them states the following: 

“When a company has a pension plan for its employees, it’s a way of deferring wage-related expenses to future periods. In terms of plan types, defined benefit plans are best from the perspective of the company and its shareholders. That’s because they ‘fix’ the amount of the company’s pension contributions rather than leaving the company exposed to the potential of having to make additional payments to the plan in future periods.”

Required

Identify and explain the flaws in your classmate’s logic.