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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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Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
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