Question

Which employee is most likely to have a pension plan?

Answer 1

A public school teacher most likely to have a pension plan.

What does a pension plan mean?

A pension plan is a type of employee benefits program created or maintained by an employer, an employee group (such a union), or both that offers retirement income or postpones income until the end of the covered employment period or beyond.

An employer must contribute to a fund that is set aside for a worker's future benefit in order to participate in a pension plan. When the worker retires, the earnings from the investments will provide income for the worker. The pool of cash is invested on the employee's behalf. In the U.S. private sector, traditional pension plans are getting harder to find.

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