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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Pension plan  

Definition 1.

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

Definition 2.

A qualified retirement plan set up by a corporation, labor union, government, or other organization for its employees. Examples include profit-sharing plans, stock bonus and Employee Stock Ownership Plans, thrift plans, target benefit plans, money purchase plans, and defined benefit plans.
 

Definition 3.

A retirement plan, usually tax exempt, wherein the employer makes contributions for the employee. Many pension plans are being replaced by the 401K.
 
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