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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

References in periodicals archive ?

As pension funds become more globalised, the pension notion of younger populations subsidising retiring ones also becomes a globalised one too.

Pension funds could do small business space some favours

On the Budget proposal to accord tax benefits to mutual fund- linked pension funds, the SBI Mutual Fund CEO, Dinesh Khara, said that this could result in annual inflows of close to ` 18,000 crore annually.

EXTENDED BENEFITS

34 of 1994, makes provision for the establishment of a national pension fund. In its current format, the law allows members of the fund to receive benefits from the fund regardless of their membership to other pension funds, including the old age pension fund that is administered by the Ministry of Labour under the Social Welfare directorate.

National pension fund--not yet!

Punjab Pension Fund was formed under of Punjab Pension Fund Act 2007.

PUNJAB PENSION FUND

Previously, the Insurance Department issued temporary emergency regulations as a result of Governor Cuomo's investigation of the state pension fund as Attorney General.

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

Union leaders yesterday sounded a warning about the pension fund of High Street giant Alliance Boots ahead of a shareholders' meeting to vote on a multibillion pound takeover.

Union warns shareholders on Alliance Boots pension; RETAIL

announced that the IATSE National Pension Fund, a national family of funds for the International Alliance of Theatrical Stage Employees (IATSE), with $850 million in assets has signed a 12-year lease for 40,000 s/f at 417 Fifth Avenue.

Pension fund leases 40,000 s/f in move from 39th to Fifth Ave

The Anglican Church of Canada's $519-million pension fund has begun investing again in shares of Talisman Energy Inc., a Calgary-based oil and gas producer that was criticized several years ago for its operations in the Sudan.

Pension plan reinvests in profitable Talisman energy

Chesterton initially wanted to purchase a pension fund advisory business to provide it access to the U.S.

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

That's the annual return he must make when investing GM's pension fund to meet the company's daunting obligations.

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

Finnair Pension Fund transfers TEL pension liabilities to Ilmarinen Mutual Pension

Even if that seems far off, pension fund managers will continue to gain force in the coming years.