Meaning of the word "pension plan" in English

What does "pension plan" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

pension plan

US /ˈpɛnʃən plæn/
UK /ˈpɛnʃən plæn/

Noun

a retirement plan that requires an employer to make contributions into a pool of funds set aside for a worker's future benefit

Example:
My company offers a generous pension plan.
It's important to understand your pension plan options.