Final answer:
An employee becomes a member of an employer's pension plan based on eligibility criteria, participation agreements, and affiliation with the employer.
Step-by-step explanation:
An employee becomes a member of an employer's pension plan based on certain requirements. These requirements may vary depending on the specific pension plan. However, some common requirements include:
- Eligibility criteria: Employees may need to meet certain age and service requirements to be eligible for the pension plan. For example, they may need to have worked for the company for a certain number of years or be of a certain age.
- Participation agreements: Employees may need to sign participation agreements to indicate their desire to join the pension plan. These agreements often outline the terms and conditions of participation.
- Affiliation with the employer: An employee typically needs to be affiliated with the employer offering the pension plan. This means they need to be a current employee or have a certain length of service with the company.