Final answer:
The entry made when cash is set aside to pay for future pension benefits is called a pension fund. Workers have a portion of their pay withheld and placed in the pension fund. The managers of the fund then invest the money to earn more money.
Step-by-step explanation:
The entry made when cash is set aside to pay for future pension benefits is called a pension fund. Pension funds are set up to plan for the retirement or disability of employees. Workers have a portion of their pay withheld and placed in the pension fund. The managers of the fund then take that money and invest it in stocks, bonds, and mutual funds to earn more money. A portion of the pension fund is paid out to those employees who have retired or are no longer working for the company.