Pension-fund meaning

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 employers’ contributions. Pension funds manage billions of dollars and are major investors in the financial markets. The Pension Benefit Guaranty Corporation insures pensioners’ benefits. See also defined benefit plan and defined contribution pension plan.
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A pool of assets forming an independent legal entity that are bought with the contributions to a pension plan for the exclusive purpose of financing pension plan benefits.
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