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 ?
This boosted the pension fund to $86 billion and gave the company "a blank sheet of paper to think through a new risk and return profile," Reed says.
The key assumption in revamping administration of the nation's pension funds was that putting these funds to work in the markets would, in the end, produce economic returns for the nation's pensioners, instead of being merely a huge cookie jar for politicians and their cohorts to dip into whenever the economy hits a rough spot.
The state has never lost a cent because of this employee's membership of the pension fund.
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NYBDC), a group the pension fund gives $100 million each year to make loans available to small businesses, wasn't making many loans to minority- and women-owned businesses, he sought to correct the situation with fiscal activist principles.
Pension Corporation Investments ("PCI") offers Pension Fund Sponsorship by assuming responsibility for a pension fund's corporate covenant, typically used where schemes cannot immediately afford insurance buy-out.
GMB's Congress next week will consider a report on the extent to which private equity companies are linked to insolvent pension funds with massive unfunded liabilities which were passed over to the tax payer and other pension funds to make up.
Villaraigosa said he hopes to persuade the boards of state employees and teachers pension funds also to invest more in housing.
They are UTI Retirement Benefit Pension Fund and Templeton India Pension Fund.

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