Pension Fund


DEFINITION of '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.


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BREAKING DOWN 'Pension Fund'

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.

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  1. How much of an institutional pension fund's portfolio is typically investing in real ...

    It is estimated that institutional pension funds in the United States typically have about 5% to 10% of their assets allocated ... Read Full Answer >>
  2. How does a pension income drawdown work?

    While there are similar drawdown plans in the United States, a pension income drawdown plan most commonly refers to a specific ... Read Full Answer >>
  3. What is a drawdown arrangement?

    A drawdown arrangement is most frequently associated with pension funds and how retirement income is received. The principle ... Read Full Answer >>
  4. What are the differences between Canada Pension Plans (CPP) and Social Security Benefits?

    On the surface, the U.S. Social Security system and the Canada Pension Plan have a lot in common. Both are publicly provided, ... Read Full Answer >>
  5. When can catch-up contributions start?

    Most qualified retirement plans such as 401(k), 403(b) and SIMPLE 401(k) plans, as well as individual retirement accounts ... Read Full Answer >>
  6. Are 401(k) contributions tax deductible?

    All contributions to qualified retirement plans such as 401(k)s reduce taxable income, which lowers the total taxes owed. ... Read Full Answer >>

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