pension fund

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Pension fund

A fund set up to pay the pension benefits of a company's workers after retirement.

Pension

A retirement plan in which an employer makes a contribution into an account each month. The contributions are invested on behalf of an employee, who may begin to make withdrawals after retirement. Typically, pensions are tax-deferred, meaning that the employee does not pay taxes on the funds in the pension until he/she begins making withdrawals. Pensions may have defined contributions, defined benefits, or both. See also: 401(k), IRA.

pension fund

A financial institution that controls assets and disburses income to people after they have retired. Pension funds, which invest in a variety of securities, control such enormous sums that their investment decisions can have significant impact on individual security prices.

pension fund

a financial institution which specializes in the management and administration of personal and corporate PENSION schemes. Pension funds collect regular contributions from individuals, employees and employers in the case of occupational pension schemes, and make payments to retired beneficiaries.

Pension funds use the monies they receive not only to make day-to-day disbursements to pensioners but also to generate additional income and profit by investing their funds in FINANCIAL SECURITIES, mainly UK and overseas government fixed-interest bonds, corporate stocks and shares and property bonds (see INSTITUTIONAL INVESTORS). Their portfolios attempt to maintain a careful balance between immediate liquidity needs and longer term investment returns.

The pension fund movement in the UK is represented by the National Association of Pension Funds (NAPF), which provides a forum for the discussion of matters of general concern to members and acts on behalf of members in dealings with other institutional bodies such as the Institutional Investors Committee and the Government. The investment and management of monies by pension funds are regulated by the INVESTMENT MANAGEMENT REGULATORY ORGANIZATION (for in-company pension funds) and by the FINANCIAL SERVICES AUTHORITY (for retail pension funds) in accordance with various standards of good practice laid down under the FINANCIAL SERVICES ACT 1986.

pension fund

a financial institution that specializes in the management and administration of personal and corporate PENSION schemes. Pension funds collect regular contributions from individuals, employees and employers in the case of occupational pension schemes and make payments to retired beneficiaries.

Pension funds use the monies they receive not only to make day-to-day disbursements to pensioners but also to generate additional income and profit by investing their funds in FINANCIAL SECURITIES, mainly UK and overseas government fixed-interest bonds, corporate stocks and shares, and property bonds (see INSTITUTIONAL INVESTORS). Their PORTFOLIOS attempt to maintain a careful balance between immediate liquidity needs and longer-term investment returns.

The investment and management of monies by pension funds are regulated by the FINANCIAL SERVICES AUTHORITY in accordance with various standards of good practice laid down under the FINANCIAL SERVICES ACT 1986. See FINANCIAL SYSTEM, TRACKER FUND, INDIVIDUAL SAVINGS ACCOUNT.

References in periodicals archive ?

The pension funds provide participants with options to invest in securities and commodities.

SECP releases five-year comparative performance of private pension funds

Bleddyn Lake, climate campaigner at Friends of the Earth Cymru, said: "It's appalling that Welsh local authority pension funds are investing in climate-wrecking fossil fuels.

Councils criticised over investment in fossil fuel firms

A permanent ban on elected officials, lobbyists and all placement agents, whether paid or unpaid, which have been a source of conflicts of interest with the pension fund.

NYSID issues permanent regs banning elected officials, lobbyists and placement agents from pension fund business, eliminating "pay-to-play". (NYSID NEWS)

The Boots pension fund trustees cannot say that they have not been warned and if they have not studied the history of the private equity industry in this matter then they are being negligent.

Union warns shareholders on Alliance Boots pension; RETAIL

By 1997, Primo and Carter were already managing pension fund assets of a number of institutions.

Rebuilding an empire: Quinton Primo bought and sold billions in real estate assets. Now he's making moves into New York City's high-stakes gold coast

As CEO of GM's Asset Management, the largest corporate pension fund in the nation, Reed has $86 billion to invest.

High stakes move: to fulfill its enormous pension fund obligations, General Motors turns to riskier investments

Finnish airline Finnair Plc said on Tuesday (22 June) that the Finnair Pension Fund had signed an agreement to transfer the Employees' Pension Act (TEL) pension liabilities of employers belonging to the Finnair Pension Fund to the Finnish insurance company Ilmarinen Mutual Pension from 1 July 2005.

Finnair Pension Fund transfers TEL pension liabilities to Ilmarinen Mutual Pension

Structurally, Japan's pension system has entered the "payout phase," which greatly increases the pressure to produce returns for both new pensioners and projected pension fund liabilities, as calculated by benchmark investment returns (currently 4 percent for the GPIF).

So much for "buy and hold": persistent bear markets should be shaking our faith in a fundamental investing tenet. (Money Watch)

On top of the real-life storms and floods over the last few weeks, Irish pension fund trustees have had to weather some dismal news affecting the value of their holdings in Elan and AIB.

SCANDAL ROCKS IRELAND: Pensions won't be damaged by loss

Brokerage Salomon Smith Barney says pension fund equity investments should grow 16% annually through 2005.

ACTIVE RETIREMENT

for instance, appears to have seen the investment yield of its pension fund fall to around minus 1% in fiscal 1998, compared with 5.