# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Pension Plan

A pension plan provides income when a person is no longer earning a salary. The payment varies according to length of service and salary. The size of the payout depends on the employee’s tenure at the company and earnings at or near retirement. 

Defined-benefit plans have significantly declined in popularity because they are expensive for companies to administer and they are not portable when employees switch employers. Defined-contribution plans (investment accounts) have risen in popularity because they better address these concerns.

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