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Series of periodic money payments made to a person who retires from employment because of age, disability, or the completion of an agreed span of service. The payments generally continue for the rest of the recipient's natural life, and they are sometimes extended to a widow or other survivor. Military pensions have existed for many centuries; private pension plans originated in Europe in the 19th century. There are two basic types of pension plans: defined contribution and defined benefit. A defined contribution plan invests a defined amount each pay period. The individual may have some discretion as to how the money is invested. The benefit, the amount of the pension, depends on the success of those investments. A defined benefit plan pays a known amount according to some formula, but the amount invested in the fund may vary. Pensions may be funded by making payments into a pension trust fund or by the purchase of annuities from insurance companies. In plans known as multiemployer plans, various employers contribute to one central trust fund administered by a joint board of trustees.
Public provision for the economic security and social welfare of all individuals and their families, especially in the case of income losses due to unemployment, work injury, maternity, sickness, old age, and death. The term encompasses not only social insurance but also health and welfare services and various income maintenance programs designed to improve the recipient's welfare through public services. Some of the first organized cooperative efforts to provide for the economic security of individuals were instituted by workingmen's associations, mutual-benefit societies, and labour unions; social security was not widely established by law until the 19th and 20th centuries, with the first modern program appearing in Germany in 1883. Almost all developed nations now have social security programs that provide benefits or services through several major approaches such as social insurance and social assistance, a needs-based program that pays benefits only to the poor. See also Social Security Act; unemployment insurance; welfare; workers' compensation.
(born Aug. 4, 1961, Honolulu, Hawaii, U.S.) 44th president of the U.S. (2009 ). Obama graduated from Columbia University (1983) and Harvard Law School (1991), where he was the first African American to serve as president of the Harvard Law Review. He moved to Chicago, where he served as a community organizer and lectured in constitutional law at the University of Chicago before he was elected (1996) to the Illinois Senate as a member of the Democratic Party. In 2004 he was elected to the U.S. Senate and quickly became a major national political figure. In 2008 Obama won an upset victory over former U.S. first lady Hillary Clinton to become the Democratic presidential nominee. He easily defeated Republican candidate John McCain and became the first African American president. In 2009 he was awarded the Nobel Peace Prize for his extraordinary efforts to strengthen international diplomacy and cooperation between peoples.
© 2010 Encyclopædia Britannica, Inc.
