Which type of plan is set up by corporations or unions for employee retirement?

A pension plan is a type of retirement plan established by corporations or unions to provide income to employees after they retire. Pension plans are designed to accumulate funds during an employee's working years through contributions made by both the employer and the employee, often supplemented by investment earnings. Once the employee retires, they receive periodic payments, which are typically determined by factors such as salary history and years of service. This structure ensures financial security for employees in their retirement years.

In contrast, an investment plan generally refers to a strategy used to allocate assets in order to achieve specific investment goals, rather than a specific instrument for retirement income. Trust funds involve the management of assets by a third party for the benefit of another party, which does not specifically relate to employee retirement in the context of corporate or union plans. A savings account is merely a deposit account held at a bank or financial institution that offers a modest interest rate, but it is not specifically structured for retirement purposes like a pension plan is.