Meaning of the word "pension scheme" in English

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

pension scheme

US /ˈpɛnʃən skim/
UK /ˈpɛnʃən skim/

Noun

a system by which employees and employers pay money into a fund, from which employees receive a pension when they retire

Example:
Many companies offer a generous pension scheme to their employees.
She decided to opt out of the company's pension scheme.