RMD stands for required minimum distribution. It is the amount of distributions you are required to take from your pension plan starting when you are 73 years old. Basically it is the amount you would have to distribute each year for the rest of your life expectancy in years to completely liquidate your pension plan. The purpose of it is to make you withdraw your pension money so you can pay tax on it before you die. It applies mostly to self-funded retirement plans such as IRA's and 401-K plans. If you are unsure if you are required to take a RMD or the amount to take, you should ask the administrator of your pension plan for help.
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