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Definition

Pension Plans

Pension plans are financial programs that provide a fixed sum when employees reach a predetermined retirement age or when they can no longer work due to disability. About half of full-time workers participate in some type or pension plan at work. However, the actual rate of participation depends on several things. For example, older workers tend to have a higher participation rate, and employees of larger firms have participation rates as much as three times as high as in small firms.


Pension Plans are plans that provide a fixed sum when employees reach a predetermined retirement age or when they can no longer work due to disability.

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