A Pension Plan (or Scheme) is a retirement financial plan used by employees to accumulate tax-sheltered savings in order to receive income after retirement. The Pension Plan requires an employer to make contributions into a pool of funds set aside for an employee's future benefit that is usually invested in various vehicles such as mutual funds including stocks and bonds. The Pension Plan is a legally binding contract having an explicit retirement objective. (Refer to the Defined Benefit (DB) Plan; Hybrid Defined Benefit (DB) Plan; Defined Contribution (DC) Plan; Individual Retirement Pension (IRP) Plan)
Related Definitions in the Project: The Commercial Definitions
