When was the first plan to provide pensions created?

When was the first plan to provide pensions created?

• A. 1907
• B. 1927
• C. 1947
• D. 1967

Answer: (B)

Pensions as formal employee benefits began with the first organized pension plan in the late 1920s. The year 1927 is commonly cited as the moment the first formal plan was created, marking a shift from informal retirements to a structured program with defined rules, funding, and eligibility. The other dates are outside that initial moment: 1907 is too early for a formal, widespread pension program, while 1947 and 1967 come later as pension systems expanded and matured in response to evolving social and economic conditions. So the year that best fits the start of formal pension plans is 1927.

Pensions as formal employee benefits began with the first organized pension plan in the late 1920s. The year 1927 is commonly cited as the moment the first formal plan was created, marking a shift from informal retirements to a structured program with defined rules, funding, and eligibility.

The other dates are outside that initial moment: 1907 is too early for a formal, widespread pension program, while 1947 and 1967 come later as pension systems expanded and matured in response to evolving social and economic conditions. So the year that best fits the start of formal pension plans is 1927.