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A pension plan is a contact between a company and its employees whereby the company agrees to pay benefits to the employees after their retirement. In a typical arrangement, the employer, and sometimes the employee, makes contributions into a fund that makes payments towards retirement income, health benefits, disability, and/or death benefits.
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Retirement - Links
Types of pension plans include defined benefit plans, defined contribution plans, employee stock ownership plans, money purchase plans, profit-sharing plans, stock bonus plans, thrift plans, and target benefit plans. Pension plans were once very common and still are common in unionized firms. They have become somewhat less common in non-unionized firms.
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