PENSION PAYMENT Meaning and
Definition
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Pension payment refers to a regular monetary disbursement made to an individual, typically upon reaching retirement age, as a form of financial support or compensation for the individual's years of service in paid employment. It is a contractual agreement between an employer and an employee, often established through a pension plan or a government-run social security system.
The purpose of a pension payment is to provide financial security and stability to retirees who no longer have a steady income from employment. Pension payments are usually calculated based on various factors such as the individual's salary history, years of service, and age at retirement. The amount of the payment may be determined by a fixed formula or specified percentage of the average income earned during the worker's career.
Pension payments are typically received on a regular basis, such as monthly, quarterly, or annually, for the remainder of the individual's lifetime. In some cases, a pension may also provide benefits to the individual's surviving spouse or dependents upon their death.
Pension payments can be paid directly by an employer or managed by a pension fund or financial institution responsible for investing and distributing the funds. The amount received in pension payments is often subject to taxation, depending on the jurisdiction and applicable laws.
Overall, pension payments serve as a crucial financial resource for retirees, helping them enjoy a comfortable and secure retirement by replacing a portion of their pre-retirement income.
Common Misspellings for PENSION PAYMENT
- oension payment
- lension payment
- 0ension payment
- pwnsion payment
- psnsion payment
- pdnsion payment
- prnsion payment
- p4nsion payment
- p3nsion payment
- pebsion payment
- pemsion payment
- pejsion payment
- pehsion payment
- penaion payment
- penzion payment
- penxion payment
- pendion payment
- peneion payment
- penwion payment
- pensuon payment
Etymology of PENSION PAYMENT
The word pension originated from the Latin word pensio, which means payment, pension, or allowance. In ancient Rome, pensio referred to a fixed sum of money paid regularly, often in exchange for services rendered or as a form of military compensation. The term evolved over time and entered the English language in the late 14th century as pension, referring to a regular payment made to individuals, typically after retirement or as a form of financial support. The word payment on the other hand, comes from the Middle English word paiment, derived from Old French paiement, ultimately originating from the Latin word pangere, meaning to fasten or to fix.
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