I just emailed Schweser to clarify this…if anyone has already gotten a response from them on this please share!
Based on CFA curriculum, it should based on TPPC. There is something wrong with this question.
Even in 1 of the topic test (Austell, which they have removed from CFAI website for unknown reason) also require us to calculate the excess contribution based on :-
Employer contribution - TPPC.
Schweser told me that CFAI is wrong and that there is a correction in the Errata. However, I don’t see the correction. 
This question also left me confused.
If it’s wrong, why do they not correct it directly within the online tool, this goes for both Schweser and CFAI. I couldn’t find an errata on this on CFA website, does anybody have a link?
This is a SOB of a question. The trick here is that they used the word economic perspective which basically changes everything. Rather than calculating (Contributions - TPPC), they are asking for the difference in real outflow terms i.e how much money could actually be spend to settle the above. So we calculate (Contributions - Periodic Pension Cost) instead of the above, because PPC is what could actually be expensed in the income statement and Contributions are the only actual cash outflow.
If you calculate Periodic Pension Cost as (current service cost + interest expense) you will get the 2562. It is also stated as net retirement expense for the year.
Amazing that someone knew the answer at last.
This is what I’m afraid of. You need to understand all the material in such depth in order to understand the questions.
I’m not even sure I would have been able to interpret net retirement expense as pension expense on the I/S, even though it is obvious.
Frankly I am nowhere around…