Describe the difference between pension plans and welfare plans?

The most general pension plans are like annuities. Your employer will pay you what ever amount a month based on how long you worked there, how much you made, etc. As for a welfare plan you do not get monthly payments. The most common is health care.

In this case your employeer pays so much into an account that you can not touch. However when you need the money, such as an emergency room visit, you can deduct money out of that account to pay for it. This atleast my interpretation so it might not be exact.

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