Pension Plan
/ˈpɛnʃən plæn/
Definitions
- (n.) A formal arrangement by which an employer provides retirement income to employees, typically funded during employment and payable upon retirement.
The company announced significant changes to its pension plan to improve employee benefits.
- (n.) A legal instrument or contract specifying the terms and conditions of retirement benefits.
The pension plan outlines the eligibility requirements and benefit calculations for retirees.
Forms
- pension plans
Related terms
See also
Commentary
Pension plans are commonly distinguished by funding type and benefit formula; clarity in drafting should specify these parameters to avoid ambiguity in entitlement.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.