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Pension fund |
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Pension fundA fund set up by a company, union, government entity, or other organisation to invest the pension contributions of members and employees, and pay out pensions to those people when they reach retirement age.Pension funds accumulate huge pools of capital which they invest in the stock and bond markets. Because of the weight of money, they exert considerable influence on the markets, and their decisions on which shares to hold in which sectors have a substantial impact on prices.Some pension funds employ their own fund managers; others delegate responsibility to external fund managers. Invariably they will try to achieve a diversified portfolio of investments, some in low risk areas, others in high risk areas. Actuaries determine how much is going to have to be paid out to pension holders in forthcoming years, and the pension fund has to try to achieve a rate of return on its capital that will meet (or better still exceed) this target.Similar MatchesGuaranteed minimum pensionGuaranteed minimum pensionThe minimum pension payable by a pension scheme in order that members may contract out of S2P (State Second Pension). Salary Reduction Simplified Employee Pension Plan (SARSEP)Salary Reduction Simplified Employee Pension Plan (SARSEP)A low-cost, no-frills version of a 401(k) employee savings plan available to companies with 25 or fewer employees. It allows employees to make pretax contributions to their IRAs through salary reduction each year. The Small Business Job Protection Act of 1996 ../../finance-glossary/d SARSEPs with SIMPLE (Savings Incentive Match Plan for Employees) plans. Existing SARSEPs were allowed to add new participants, but new plans could not be formed after December 31, 1996. Overfunded pension planOverfunded pension planA pension plan that has a positive surplus (i.e., assets exceed liabilities). Unfunded pension planUnfunded pension planA pension plan which is funded by an employer from current income for the benefit of retirees. Pension planPension planSee 'personal pension plan'. Further SuggestionsContingent pension liabilityPension Benefit Guaranty Corporation pension mortgage Master pension plan defined contribution pension plan National Insurance (NI) Basic Pension Pension sponsors State Second Pension Unfunded pension plan Funded pension plan pension forecast Pension reversion Underfunded pension plan Inland Revenue Pension Schemes Office equivalent pension benefit Personal pension Pensions Compensation Board appropriate personal pension plan Pension mortgage Occupational Pensions Regulatory Authority Simplified Employee Pension (SEP) plan personal pension scheme pension credit personal pension plan Keogh pension plan |
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