Pension

A pension is a series of definitely determinable payments made to an employee or survivor (the beneficiary of a deceased employee's pension) after the employee retires from work. Payments are made regularly and are for past services with an employer.

A pension is fully or partially taxable depending on whether the employee contributed to the pension plan and whether the contributions were before- or after-tax contributions. The total amount of the pension usually depends on how long the taxpayer worked for the company and how much the taxpayer earned over the years.