about Pension payment

Before 401K, large private companies provided pension for retirement.  At the time of retirement, the retiree usually choose to have annuity (regular payment until death) or lump-sump.  Most people choose lump-sump, because death would ends annuity and children won't get anything, unlike lump-sum.

I suspect this is why the old gentleman kept working, because his divorce decree said if he got his pension (either annuity or lump-sum), he had to give a portion to his ex-wife (maybe 1%, maybe more, depends on their circumstances)

This kind of pension is very rare now.  With 401K the division is easier. 

To read more about old-time pension system, see https://www.pbgc.gov/about  It is not just government employees.  PBGC is a government insurance agency for private pension, like FDIC for banks.