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Felix is concerned about saving money for retirement. His company regularly contributes money to a retirement fund for Felix and the other employees. The amount of money that Felix will receive at retirement will be based upon his number of years of service to the company. This is a(n) ________.

User Eremite
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Answer: pension plan

Explanation: In simple words, pension plan refers to the plan under which an employer makes periodic payments into a pool of funds which can be used by an employee in future.

The amount deposited by the employer is usually deducted from the salary of employee.

In the given case, the company in which Felix works contributes a certain amount of money on specific funds and such funds will be received by employees on their retirements.

Hence these funds are part of pension plan.

User AshUK
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