The Collaborative International Dictionary of English v.0.48:

Pension \Pen"sion\, v. t. [imp. & p. p. Pensioned; p. pr. &
   vb. n. Pensioning.]
   To grant a pension to; to pay a regular stipend to; in
   consideration of service already performed; -- sometimes
   followed by off; as, to pension off a servant.
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         One knighted Blackmore, and one pensioned Quarles.
                                                  --Pope.
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The Collaborative International Dictionary of English v.0.48:

Pension \Pen"sion\, n. [F., fr. L. pensio a paying, payment, fr.
   pendere, pensum, to weight, to pay; akin to pend?re to hang.
   See Pendant, and cf. Spend.]
   1. A payment; a tribute; something paid or given. [Obs.]
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            The stomach's pension, and the time's expense.
                                                  --Sylvester.
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   2. A stated allowance to a person in consideration of past
      services; payment made to one retired from service, on
      account of age, disability, or other cause; also, a
      regular stipend paid by a government to retired public
      officers, disabled soldiers, the families of soldiers
      killed in service, or to meritorious authors, or the like.
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            To all that kept the city pensions and wages. --1
                                                  Esd. iv. 56.
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   3. A certain sum of money paid to a clergyman in lieu of
      tithes. [Eng.] --Mozley & W.
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   4. [F., pronounced ?.] A boarding house or boarding school in
      France, Belgium, Switzerland, etc.
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WordNet (r) 3.0 (2006):

pension
    n 1: a regular payment to a person that is intended to allow
         them to subsist without working
    v 1: grant a pension to [syn: pension, pension off]