Definition - What does Pension Plan mean?
A pension plan is financial strategy for planning for retirement in which both an employee and an employer contribute to an account that grows over time and can be used for fixed income upon retirement. In the context of insurance, the benefits provided by pension plans are often insured by insurance companies.
Insuranceopedia explains Pension Plan
It is also common for pension plans to be managed by insurance companies on behalf of employers or for them to be converted into annuities. These annuities can also yield a fixed income upon retirement for the person who owns them. Pension plan benefits are typically paid out in regular intervals, such as once a month. Many pension plans have a match component in which an employer will match the contributions of an employee into the plan. This can help grow the cash value of the plan.