pension fund

Pension Fund

A fund established by an employer to facilitate and organize the investment of employees' retirement funds contributed by the employer and employees. The pension fund is a common asset pool meant to generate stable growth over the long term, and provide pensions for employees when they reach the end of their working years and commence retirement.

Investopedia Commentary

Pension funds are commonly run by some sort of financial intermediary for the company and its employees, although some larger corporations operate their pension funds in-house. Pension funds control relatively large amounts of capital and represent the largest institutional investors in many nations.

Related Links

Keeping Track Of Your Assets
Analyzing Pension Risk
Qualified Plan Loans: Guidelines to Operations

See also: Actuarial Analysis, Defined-Benefit Plan, Defined-Contribution Plan, Pension Shortfall, Simplified Employee Pension - SEP, Superannuation, Vesting

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.