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What are Employee benefits?

Employee benefits refer to the privileges given to the employees by their employer while in service and even after the service also. Employees can get benefit throughout their service tenure as bonuses, increments, allowances, etc.  When they get benefits in terms of money, they are termed as aretirement pension.

What is a pension?

Pension is actually a fund into which the sum of money is added during an employee service years, and from which payments are drawn to support person’s retirement from work in the form of periodic payments.

It can also be known as defined benefit plan in which a sum of fixed amount is given to a person’s account on aregular basis (monthly).

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What are the different types of pensions?

Before mentioning the types of pensions, it is important to mention that the concept of pension is different in everycountry, and there arecontinuous amendments going on with pension-related laws.

In India, central or state government employees who have joined their service after 2009 will not be granted pension. Similarly, Ministry of Defence has announced: “One Rank One Pension” for the retired defence staffs.

Now coming to its types:

  • Social and state pensions
  • Employment-based pensions
  • Disability pensions

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