pension plan

American  

noun

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.

---

Etymology

Origin of pension plan

First recorded in 1955–60

Example Sentences

If the money is paid to you, the administrator of the pension plan is obliged to withhold 20% for taxes.

From MarketWatch • May 6, 2026

To avoid taxes, you should do a direct rollover — that way, the money goes straight from the pension plan to the IRA.

From MarketWatch • May 6, 2026

This rule will help employers change their retirement offerings, from accumulation-only, to those that provide secure retirement income—like a pension plan.

From The Wall Street Journal • Apr. 2, 2026

It was a miss, and the adjusted figure excluded $825 million in charges, mainly due to pension plan changes.

From Barron's • Feb. 17, 2026

Don't expect to find production data, production formulas, detailed outlines of a company's pension plan, or the number of personal computers in a company.

From The Online World by De Presno, Odd