pension plan

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.

Notes:

There are restrictions as to when and how you can withdraw these funds without being charged taxes and penalties.

See also: 401k, Canada Pension Plan (CPP), IRA, Pension Shortfall, Roth IRA, Registered Retirement Savings Plan (RRSP), Social Security, Superannuation

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Pension plan

A fund that is established for the payment of retirement benefits.

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pension plan

An arrangement for paying death, disability, or retirement benefits to employees. Payments into the plan are ordinarily a tax-deductible expense for the firm, but any contribution by employees may or may not be deductible on personal tax returns. Likewise, retirement benefits paid to employees will be wholly or partially taxable. Compare vested benefits. See also defined-benefit pension plan, defined-contribution pension plan.