A pension fund is created by one’s employer for the purposes of the employee’s investment retirement funds to which they both contribute. Each month the employee is paid, a certain percentage of the salary goes into the pension fund, with an additional sum provided by the employer. These make very good terms for the employee; it is a great benefit. What this is known as is a common asset pool which seeks to generate long-term solid growth as well as providing the workers with a good pension for when they leave the job (i.e., retire). Usually such a fund is set up by an intermediary (not the employer or the employee) which makes things easier for everyone. But if the company is like a very large corporation this intermediary may be in-house. Pension funds are likely the biggest institutional investors in most western countries.
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