| 1. | a systematic plan created and maintained, as by a corporation, to make regular payments of benefits to retired or disabled employees, either on a contributory or a noncontributory basis. |
| 2. | retirement plan (def. 1). |
| pension plan n. An arrangement for paying a pension to an employee, especially one funded fully or in large part by an employer. |
Pension Plan
A retirement plan, usually tax exempt, wherein the employer makes contributions for the employee. Many pension plans are being replaced by the 401K.
Investopedia Commentary
There are restrictions as to when and how you can withdraw these funds without being charged taxes and penalties.
Related Links
Introductory Tour through Retirement Plans
Determining Your Post-Work Income
Keeping Track Of Your Assets
See also: 401k, Canada Pension Plan (CPP), IRA, Pension Shortfall, Registered Retirement Savings Plan (RRSP), Roth IRA, Social Security, Superannuation
pension plan