Pension

An employer-sponsored retirement plan that provides income in retirement or upon the termination of a worker's employment. Pensions are offered in both the public and private sector, though are becoming less common in the private sector. Employees receive a set income in retirement related to how long they worked at a company. Employers, not employees, fund the income. Since the 1980s, they’ve been gradually phased out and replaced with 401(k) plans.