Pension fund

A pension fund is any plan, fund, or scheme which provides retirement income.

Pension funds are important to shareholders of listed and private companies. They are especially important to the stock market where large mutual funds, insurance companies, currency reserves, sovereign wealth funds, hedge funds, or private equity.^[2] Although the (Japan) Government Pension Investment Fund (GPIF) lost 0.25 percent, in the year ended March 31, 2011 GPIF was still the world's largest public pension fund which oversees 114 trillion Yen ($1.5 trillion).^[3]

Classifications

Open vs. closed pension funds

Open pension funds support at least one pension plan with no restriction on membership while closed pension funds support only pension plans that are limited to certain employees.^[4]

Closed pension funds are further subclassified into:

• Single employer pension funds
• Multi-employer pension funds
• Related member pension funds
• Individual pension funds

Public vs. private pension funds

A public pension fund is one that is regulated under public sector law while a private pension fund is regulated under private sector law. In certain countries the distinction between public or government pension funds and private pension funds may be difficult to assess. In others, the distinction is made sharply in law, with very specific requirements for administration and investment. For example, local governmental bodies in the United States are subject to laws passed by the states in which those localities exist, and these laws include provisions such as defining classes of permitted investments and a minimum municipal obligation.^[5]

Examples

Australia

Government

• Public Sector Superannuation Scheme (for federal civil servants)
• Commonwealth Superannuation Scheme (older scheme for federal civil servants)
• State Super (for New South Wales state civil servants)

Industry (not-for-profit)

• Sunsuper

Private

• The Retail Employees Superannuation Trust
• ANZ Australian Staff Superannuation Scheme (for employees of ANZ Bank)

Brazil

• Previ
• Petros
• Funcef
• Valia
• Fundação Banrisul
• Fundação CESP
• Fundação Itaubanco
• Sistel
• Banesprev
• Forluz
• Centrus
• Baneses
• Aceprev

Canada

Government

• Caisse de dépôt et placement du Québec
• Canada Pension Plan Investment Board
• Public Sector Pension Investment Board
• Alberta Investment Management

Private

• Colleges of Applied Arts and Technology Pension Plan CAAT)
• Ontario Teachers' Pension Plan
• Healthcare of Ontario Pension Plan (HOOPP)
• OMERS Administration Corporation (OMERS)
• Ontario Pension Board (OPB)
• OPSEU Pension Trust (OPTrust)
• BC Pension Corporation including the College Pension Plan, the Municipal Pension Plan, the Public Service Pension Plan, the Teachers' Pension Plan, and WorkSafeBC

Chile

• Chile pension system

China

• National Social Security Fund (全国社会保障基金理事会) [1]

Hong Kong

• Mandatory Provident Fund

India

• 5 Lakh Crore (US$ 91 Billion) as of 2013. EPF
• National Pension Scheme - A defined-contribution-based pension scheme launched by the Government Of India open to all Citizens of India on a voluntary basis and mandatory for the employees of Central Government (except Indian Armed Forces) who are appointed on or after 1 January 2004. Indian citizens between the age of 18-55 are eligible to join. PFRDA

Japan

• See Japan Pension Service
• Government Pension Investment Fund, Japan (GPIF, 年金積立金管理運用独立行政法人)

Malaysia

• Employees Provident Fund (Malaysia's largest, total assets of around RM407 billion in diversified portfolio)^[6]

Morocco

• Caisse de dépôt et de gestion
• CMR (French)

Netherlands

• Stichting Pensioenfonds ABP (ABP)
• Stichting Pensioenfonds Zorg en Welzijn (PFZW, formerly PGGM)

Norway

• The Government Pension Fund - Global (Statens pensjonsfond - Utland)
• The Government Pension Fund - Norway (Statens pensjonsfond - Norge)

Romania

The pension system in Romania is made of 3 pillars, one is the state pension (Pillar I - Mandatory), second is a private mandatory pension were the state transfers a percentage of the contribution it collects for the public pension and third an optional private pension (Pillar III - Voluntary).

The Financial Supervisory Authority - Private Pension is responsible for the supervision and regulation of the private pension system.^[7]

Singapore

• Central Provident Fund

Switzerland

• Pension system in Switzerland

United States

In the United States pension funds include schemes which result in a deferral of income by employees, even if retirement income provision isn't the intent.^[8] The United States has more than $9.838 trillion in assets as of March 31, 2010.^[9] The largest 200 pension funds accounted for $4.540 trillion as of September 30, 2009.^[10]

Government

• California Public Employees' Retirement System (CalPERS)
• California State Teachers' Retirement System (CalSTRS)
• Fire and Police Pension Association of Colorado (FPPA)
• Illinois Municipal Retirement Fund
• Kansas City Public School Retirement System (KCPSRS)
• Kansas Public Employees Retirement System (KPERS)
• Minnesota Public Employees' Retirement Association (MNPERA)
• Minnesota Teachers' Retirement Association (MNTRA)
• New York State Teachers' Retirement System (NYSTRS)
• Retirement Systems of Alabama (RSA)
• Teacher Retirement System of Texas (TRS of Texas)
• Thrift Savings Plan (TSP)

Saudi Arabia

• Public Pension Agency (PPA)

• the general organization for social insurance

Greece

Government

• Public Employees Pension Fund [2]

Private

• TAPILTAT, the Fund for Mutual Assistance of the Employees of Ioniki Bank and Other Banks, the multi-employer auxiliary pension fund.

Turkey

Government

• Sosyal Güvenlik Kurumu (Social Security Institution, SGK)

Social Security Institution was established by the Social Security Institution Law No:5502 which was published in the Official Gazette No: 26173 dated 20.06.2006 and brings the Social Insurance Institution, General Directorate of Bağ-kur and General Directorate of Emekli Sandığı whose historical development are summarized above under a single roof in order to transfer five different retirement regimes which are civil servants, contractual paid workers, agricultural paid workers, self-employers and agricultural self-employers into a single retirement regime that will offer equal actuarial rights and obligations. The Social Security Institution is continuing its activities to provide better quality of services for our citizens with the participation of whole staff putting all their energy individually and institutionally.

Private

• Armed Forces Pension Fund

OYAK, (Ordu Yardımlaşma Kurumu/Armed Forces Pension Fund) provides its members with "supplementary retirement benefits" apart from the official retirement fund, T.C.Emekli Sandığı/SSK, to which they are primarily affiliated.

In addition to the retirement benefit, OYAK pays "disability benefits" to the members on duty when they become partially or fully disabled as well as "death benefits" to the heirs of the deceased member if the death occurs during the member's subscription to the Foundation.

OYAK is incorporated as a private entity under its own law subject to Turkish civic and commercial codes. OYAK while fulfilling its legal duties, as set in the Law, also provides its members with social services such as loans, home loans and retirement income systems.

The initial source of OYAK's funds is a compulsory 10 percent levy on the base salary of Turkey's 200,000 serving officers who, together with 25,000 current pensioners, make up OYAK's members.

Some other Turkish private pension funds:

• YAPI ve KREDİ BANKASI A.Ş. Mensupları Yardım ve Emekli Sandığı Vakfı
• AKBANK T.A.Ş. Mensupları Tekaüt Sandığı Vakfı
• TÜRKİYE GARANTİ BANKASI A.Ş. Memur ve Müstahdemleri Emekli ve Yardım Sandığı Vakfı
• TÜRKİYE ODALAR BORSALAR VE BİRLİK PERSONELİ SİGORTA VE EMEKLİ SANDIĞI VAKFI
• TÜRKİYE İŞ BANKASI A.Ş. Mensupları Emekli Sandığı Vakfı

Largest pension funds

Country Fund Assets US$ (in billions) Inception Origin  Japan Government Pension Investment Fund $1370[11] 2006 Non-commodity  Norway Government Pension Fund of Norway $856[12] 1990 Oil  United States Civil Service Retirement and Disability Fund $832[13] 1920 Non-commodity  Netherlands Stichting Pensioenfonds ABP (ABP) $427 (€309) 1922 Non-commodity  South Korea National Pension Service (NPS) $400[14] 1988 Non-commodity  United States Thrift Savings Plan (TSP) $330[15] 1986 Non-commodity  United States (California) California Public Employees' Retirement System (CalPERS) $289.8[16] 1932 Non-commodity  Netherlands Stichting Pensioenfonds Zorg en Welzijn (PFZW, formerly PGGM) $197 (€142.8) 1969 Non-commodity  United States (California) California State Teachers' Retirement System (CalSTRS) $189.1[17] 1913 Non-commodity  Canada Canada Pension Plan and CPP Investment Board $183 (CAD$189)[18] 1965 Non-commodity  China National Social Security Fund $177.4[19] 2000 Non-commodity  Canada (Quebec) Caisse de dépôt et placement du Québec (The Caisse, or CDPQ) $176[20] 1965 Non-commodity  Malaysia Employees Provident Fund $130[6] 1991 Non-commodity  Canada (Ontario) Ontario Teachers' Pension Plan $130 1990 Non-commodity  Brazil Caixa de Previdencia dos Funcionários do Banco do Brasil (PREVI) $80 1904 Finance  Ireland National Pension Reserve Fund (NPRF) $30[21] 2001 Non-commodity  France Pensions Reserve Fund (France) (NPRF) $56[22] 2001 Non-commodity See also Pension regulation Global assets under management Pension insurance contract Sovereign wealth fund Qualifying registered overseas pension schemes References ^ Global Investment Review ^ The Economist Jan 17, 2008 (economist.com) ^ "World’s Biggest Pension Fund Plans to Start Investing in Emerging Markets". Bloomberg. September 30, 2011.  ^ OECD ^ For examples, see "Local Government Law Library". Retrieved 15 May 2011.  ^ a b [3] ^ http://www.csspp.ro ^ 29 USC § 1002 - Definitions | Title 29 - Labor | U.S. Code | LII / Legal Information Institute. Law.cornell.edu. Retrieved on 2013-07-18. ^ http://www.federalreserve.gov/releases/z1/Current/z1.pdf ^ P&I Online ^ Government Pension Investment Fund, Japan. Gpif.go.jp. Retrieved on 2013-07-18. ^ Market value. norges-bank.no Retrieved on 2014-04-29. ^ Budget of the United States Government, FY2014. Office of Management and Budget April 10, 2013 ^ "Korea’s $400 Billion Pension Plans Hiring Spree for Push". Bloomberg. 7 February 2014.  ^ Financial Statements of the Thrift Savings Fund. April 15, 2013 ^ Current Investment Fund Values. Calpers.ca.gov. Retrieved on 2014-05-10. ^ [4]. calstrs.com. Retrieved on 2014-08-06. ^ Assets under management as of June 30, 2013. cppib.com. Retrieved 2013-09-06 ^ http://www.ssf.gov.cn/cwsj/ndbg/201309/t20130928_5909.html ^ http://www.lacaisse.com/en/results ^ NPRF ^ FRR 2012 Annual Report Private equity and venture capital Basic investment types Buyout Venture Mezzanine Growth Secondaries Equity co-investment History History of private equity and venture capital Early history of private equity Private equity in the 1980s Private equity in the 1990s Private equity in the 2000s Terms and concepts Buyout Financial sponsor Management buyout Divisional buyout Buy–sell agreement Leveraged recapitalization Dividend recapitalization Venture Angel investor Business incubator Post-money valuation Pre-money valuation Seed money Startup company Venture capital financing Venture debt Venture round Structure Private equity firms and funds Limited partnership Limited liability company Carried interest Management fee Publicly traded private equity Business Development Company Venture capital trust Private investment in public equity (PIPE) Pledge fund Investors Corporations Institutional investors Pension funds Insurance companies Fund of funds Endowments Foundations Investment banks Merchant banks Commercial banks High-net-worth individuals Family offices Sovereign wealth funds Crowdfunding Related financial terms AUM Cap table Capital call Capital commitment Capital structure Distribution Waterfall EBITDA Envy ratio High-yield debt IPO IRR Leverage M&A PME Undercapitalization Vintage year Private equity and venture capital investors Private equity firms Venture capital firms Angel investors Portfolio companies Lists of countries by financial rankings Trade Account balance % of GDP Exports net per capita Imports Leading trade partners Investment FDI received past FDI abroad GFI Funds Forex reserves Forex reserves (ex. 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