pension fund

pension fund definition - finance
A fund that is set up by a corporation, government, or labor union to pay benefits to retired workers. While workers are employed, contributions may be made through payroll contributions and through employersÂ’ contributions. Pension funds manage billions of dollars and are major investors in the financial markets. The Pension Benefit Guaranty Corporation insures pensionersÂ’ benefits. See also defined benefit plan and defined contribution pension plan.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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