A more thorough explanation:

Definition: A pension plan is a program established by an employer or an employee organization that provides retirement income to employees or allows them to defer income until after they leave their job.

For example, a company might offer a pension plan to its employees as part of their benefits package. The plan would allow employees to contribute a portion of their income to the plan, which would then be invested to grow over time. When the employee retires, they would receive regular payments from the plan to supplement their income.

Another example of a pension plan is a government-run program like Social Security. Workers pay into the program throughout their careers, and then receive retirement benefits once they reach a certain age.

Overall, pension plans are designed to help workers save for retirement and ensure that they have a source of income once they stop working.