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LSDefine

Simple English definitions for legal terms

Pension

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A quick definition of Pension:

When people retire from their jobs, they may continue to receive money from their employer in the form of a pension. There are two types of pensions: defined benefit plans and defined contribution plans. In a defined benefit plan, the amount of money an employee receives is based on their length of employment and wages earned. In a defined contribution plan, the employer puts money into an account for the employee, but the employee is not guaranteed a specific amount of money upon retirement. Pensions are governed by federal law, including the Employee Retirement Income Security Act (ERISA), which requires employers to provide detailed descriptions of pension benefits, establish fiduciary responsibilities, and adequately fund the program. ERISA also establishes the Pension Benefit Guaranty Corporation to insure defined benefit plans. Employers who follow ERISA guidelines may receive tax breaks.

A more thorough explanation:

A pension is a form of monetary compensation that an employee receives from their employer after retirement. There are two main types of pensions:

  • Defined benefit plan: The benefit that an employee receives is based on the length of their employment and the wages they received. The money to support the pensions is administered through a trust established by the employer.
  • Defined contribution plan: The employer makes regular deposits into an account established for each employee. The employee is not guaranteed to receive a given amount during retirement but only the amount in the account.

Pensions are governed primarily by federal statutory law. The Employee Retirement Income Security Act (ERISA) was passed by Congress to regulate interstate commerce and to prevent the mismanagement of funds in direct benefit plans. ERISA requires that employers provide both the Labor Department and its employees with detailed descriptions of the benefits they are to receive. It also outlines which employees must receive a pension if they are offered and requires that a percentage of the retirement benefits become vested in the employees after they have worked for a given number of years and/or have reached a given age. ERISA also requires that pension plans provide benefits to an employer's survivors upon their death.

For example, if an employee works for a company for 20 years and retires, they may receive a monthly pension payment based on their salary and length of service. The pension plan may also provide benefits to their spouse or children after their death.

Pennsylvania | Pension Benefit Guaranty Corporation (PBGC)

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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
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@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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