pension fund

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pension fund

A company contributes to its employees' pension fund each month.

Definition

Noun: 1. A financial institution: An organization, typically a trust or a specialized company, that receives and invests regular contributions (from employers and/or employees) to generate income for paying pensions to employees upon their retirement. 2. A pool of money: The specific sum of capital that is accumulated and managed by such an institution, reserved explicitly for the purpose of funding future pension payments to retired workers.

Usage Examples
  • As an institution:
    • The company contributes a percentage of each employee's salary to the pension fund.
    • She reviewed her annual statement from the pension fund to check the growth of her retirement savings.
  • As a pool of money:
    • The state pension fund has assets worth billions of dollars.
    • A portion of the investment returns generated by the pension fund is used to pay current retirees.
Advanced Usage
  • "to be vested in a pension fund": To have earned the right to receive future benefits from the fund, regardless of whether one continues working for the employer.
    • After five years of service, employees become fully vested in the company pension fund.
Variants and Related Words
  • Superannuation fund (noun, chiefly AU/NZ): A term synonymous with pension fund.
  • Pension plan (noun): The overall scheme or program that includes the rules for contributions and benefits; the pension fund is the financial vehicle that holds the assets for the plan.
  • Defined-benefit pension fund (noun): A type of fund where the retirement payout is predetermined by a formula based on salary and years of service.
  • Defined-contribution pension fund (noun): A type of fund where the contributions are fixed, but the final retirement benefit depends on the investment performance of the fund.
Synonyms
  • Retirement fund
  • Provident fund (common in some Commonwealth countries)
Related Phrases
  • Pension fund manager (noun phrase): The individual or company responsible for investing the assets of the pension fund.
    • The pension fund manager decided to diversify the portfolio into international markets.
pension fund

A company contributes to its employees' pension fund each month.

Noun
  1. a financial institution that collects regular contributions from employers to provide retirement income for employees
  2. a fund reserved to pay workers' pensions when they retire from service

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