A pension is
A)a cost such as health insurance paid on behalf of a retired or disabled employee.
B)a contingent inflow of cash anticipated from assets earning interest.
C)required of all employers.
D)usually determined by the employees' years of service.

Question

Quizplus · Accepted Answer

A pension is usually determined by the employee's years of service, taking into account factors such as salary and age at retirement. It is a retirement benefit provided by an employer to an employee, which guarantees a steady stream of income to the retiree either for life or for a specified period of time. Pensions are not a required benefit for all employers, and they are not contingent inflows of cash anticipated from assets earning interest. Health insurance is a separate employee benefit.

A Pension Is