Augusta
VIP Contributor
When one is still working, there always the need to save money away for retirement and this money is called pension. So pension is payment that is usually made from the state or private company to someone who will someday retired.
So to make this payment the pension payment plan comes in. Which are in two forms: Deferred compensation plan and Defined contribution plan
So Deferred compensation plan is all about an employer paying a fixed amount monthly for each employees as pension funds. The payment is based on the employee's length of service, retirement age etc
The second payment plan is the defined contribution plan which has to do with employee contributing a percentage of their salary every month and the employer add theirs as well. The combined money will be release to the employee upon retirement.
So to make this payment the pension payment plan comes in. Which are in two forms: Deferred compensation plan and Defined contribution plan
So Deferred compensation plan is all about an employer paying a fixed amount monthly for each employees as pension funds. The payment is based on the employee's length of service, retirement age etc
The second payment plan is the defined contribution plan which has to do with employee contributing a percentage of their salary every month and the employer add theirs as well. The combined money will be release to the employee upon retirement.
