Final answer:
The term for a plan in which an employer pays insurance benefits from a fund derived or borrowed from the employer's current revenues or pay is retirement insurance.
Step-by-step explanation:
The term for a plan in which an employer pays insurance benefits from a fund derived or borrowed from the employer's current revenues or pay is retirement insurance.
All workers pay a percentage of their net income into Social Security and into Medicare, which then provides income and health care benefits to the elderly. Social Security and Medicare are not literally 'insurance' in the sense that those currently contributing to the fund are not eligible for benefits. They function like insurance, however, in the sense that individuals make regular payments into the programs today in exchange for benefits they will receive in the case of a later event - either becoming old or becoming sick when old. A name for such programs is 'social insurance.'