Final answer:
A pension plan is a contractual agreement between an employer and its employees in which the employer provides benefits to employees after they retire. Therefore, the given statement is true.
Step-by-step explanation:
A pension plan is a contractual agreement between an employer and its employees in which the employer provides benefits to employees after they retire. This statement is true.
In a pension plan, the employer sets aside a portion or percentage of the employee's pay into a pension fund. The fund is then invested by fund managers to earn returns. When employees retire, they receive a portion of the pension fund as payments to support their retirement needs.