MBA (Finance)III – Semester, Merchant Banking and Financial Services, Unit 5.4
Define Pension Plan
According to the Supreme Court of India (1982), “Pension is a term applied to periodic money payments to a person, who retires at a certain age, considered age of disability; payments usually continue for the rest of the natural life of the recipient.”
Retired persons require
reasonable money continuously to lead a comfortable life till their death. A
Retirement Plan provides financial assurance for the payment of certain sum of
money periodically to the retired persons. In India, the government servants
are receiving pension after retirement. There is no such pension to the private
employees. Instead, there are various retirement plans available to private
employees. Hence, the private employees can take private Retirement Plans to
secure their future in terms of finance. The trend of opting for Retirement
Plans is becoming increasingly popular in India.
Definition
According to the Supreme Court of India (1982), “Pension is a term applied to
periodic money payments to a person, who retires at a certain age, considered
age of disability; payments usually continue for the rest of the natural life
of the recipient.”
