COMPANY PENSION Meaning and
Definition
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A company pension refers to a retirement benefit plan established by an employer to provide financial security and a source of income for its employees after they retire. It is a form of retirement scheme that is typically funded by contributions made by both the employer and the employee.
Under this pension arrangement, employees contribute a portion of their income towards the pension fund, which is then invested over time to generate returns and build up the retirement savings. Employers also make contributions to the fund, either as a fixed amount or a percentage of the employee's salary.
Upon reaching retirement age or fulfilling certain criteria, employees become eligible to receive pension payments from the company pension plan. The amount of pension the employee receives is typically based on factors such as the employee's salary, length of service, and the terms of the pension plan. It is usually paid out in regular intervals, such as monthly or annually.
Company pensions offer individuals a reliable source of income during their retirement years, helping to replace a portion of their pre-retirement earnings. They provide employees with a sense of financial security and stability, allowing them to maintain their standard of living and cover essential expenses during retirement.
However, it is important to note that company pensions vary in their design and features. Some plans offer defined benefits, where the amount of pension is pre-determined based on a formula. Others provide defined contributions, where the final pension amount depends on the investment performance of the pension fund.
Common Misspellings for COMPANY PENSION
- xompany pension
- vompany pension
- fompany pension
- dompany pension
- cimpany pension
- ckmpany pension
- clmpany pension
- cpmpany pension
- c0mpany pension
- c9mpany pension
- conpany pension
- cokpany pension
- cojpany pension
- comoany pension
- comlany pension
- com0any pension
- compzny pension
- compsny pension
- compwny pension
- compqny pension
Etymology of COMPANY PENSION
The etymology of the word "company pension" can be understood by breaking it down into its constituent parts:
1. Company: The word "company" comes from the Old French word "compaignie", which evolved from the Latin word "companio". "Companio" is derived from the prefix "com-" meaning "together" and "panis" meaning "bread". Thus, the original meaning of "company" relates to people who share a meal together, indicating a sense of companionship and association.
2. Pension: The word "pension" originates from the Old French term "pension", which can be traced back to the Latin word "pensionem". "Pensionem" refers to a payment, often regular, made to a person for services rendered or as a retirement benefit. The term is also related to the Latin word "pensio", which means "payment" or "rent".
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