Pension fund

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Financial market participants

A pension fund, also known as a superannuation fund in some countries, is any plan, fund, or scheme which provides retirement income.

Pension funds in 2005

Pension funds typically have large amounts of money to invest and are the major investors in listed and private companies. They are especially important to the stock market where large institutional investors dominate. The largest 300 pension funds collectively hold about $6 trillion in assets.[1] In 2012, PricewaterhouseCoopers estimated that pension funds worldwide hold over US$33.9 trillion in assets (and were expected to grow to more than $56 trillion by 2020), the largest for any category of institutional investor ahead of mutual funds, insurance companies, currency reserves, sovereign wealth funds, hedge funds, or private equity.[2]

The Federal Old-age and Survivors Insurance Trust Fund is the world's largest public pension fund which oversees $2.72 trillion USD in assets.

Classifications[]

Open vs. closed pension fund[]

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.[3]

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.[4][5]

Largest pension funds[6][]

Country Fund Assets US$ (in billions) Reporting
Period 		Inception Origin
 United States Federal Old-age and Survivors Insurance Trust Fund (Social Security) $2721[7] 2020 1935 Taxation
 Australia Australian National Superannuation Scheme $2353[8] 2021 1992 Employer & Employee Contribution
 Japan Government Pension Investment Fund $1790[9] 2020 2006 Non-commodity
 Norway Government Pension Fund of Norway $1046[10] 2015 1990 Oil
 United States Civil Service Retirement and Disability Fund $962[11] 2020 1920 Employer & Employee Contribution
 United States Military Retirement Fund $893[12] 2020 1984 Employer Contribution
 United States Thrift Savings Plan (TSP) $721[13] 2020 1986 Employer & Employee Contribution
 South Korea National Pension Service (NPS) $462[10] 2017 1988 Non-commodity
 Netherlands Stichting Pensioenfonds ABP (ABP) $499[14] (€444) 1922 Non-commodity
 Canada Canada Pension Plan and CPP Investment Board (CPPIB) $317[15] 2017 1965 Non-commodity
 Canada (Quebec) Caisse de dépôt et placement du Québec (The Caisse, or CDPQ) $299[16] 2017 1965 Non-commodity
 United States (California) California Public Employees' Retirement System (CalPERS) $389[17] 2020 1932 Non-commodity
 China National Social Security Fund $251[10] 2015 2000 Non-commodity
 Singapore Central Provident Fund $348[18] 2019 1955 Non-commodity
 Canada (Ontario) Ontario Teachers' Pension Plan (OTPP) $207.4[19] 2019 1989 Non-commodity
 United States (California) California State Teachers' Retirement System (CalSTRS) $282[20] 2021 1913 Non-commodity
 Malaysia Employees Provident Fund $226[18] 2019 1991 Non-commodity
 Netherlands Stichting Pensioenfonds Zorg en Welzijn (PFZW, formerly PGGM) $183[21] (€162) 1969 Non-commodity
 Chile AFP $160[22] 2014 1980 Non-commodity
 India Employees' Provident Fund Organisation (EPFO) $228[23] 2019 1952 Employer & Employee Contribution
Russia Russia Russian National Wealth Fund $125 [38] 2020 2008 Oil
 Denmark Arbejdsmarkedets Tillægspension (ATP) $155[24] 2020 1964 Employee Contribution
 South Africa Government Employees Pension Fund (GEPF) $112 (ZAR1426b) 1996 Non-commodity
 Canada OMERS (Ontario) $83[25] 2020 1962 Non-commodity
 Brazil (PREVI) $80[26] 1904 Finance
 United States (Ohio) $79.8[27] 2017 1919 Defined Benefit Pension
 France AGIRC - ARRCO $70[10] 2015 2001 Non-commodity
 India National Pension System (NPS) $85[28] 2021 2004 Non-commodity
 France Pensions Reserve Fund (France) (NPRF) $56[29] 2001 Non-commodity
 Ireland (NPRF) $30[30] 2001 Non-commodity

By country[]

Australia[]

Main article: Superannuation in Australia

Government[]

Industry (not-for-profit)[]

[31]

Private[]

  • (for employees of ANZ Bank)

Brazil[]

  • Aceprev
  • Baneses
  • Banesprev
  • Centrus
  • FAPES
  • Forluz
  • Funcef
  • Fundação Banrisul
  • Fundação CESP
  • Fundação Itaubanco
  • Petros
  • PREVI - Caixa de Previdência dos Funcionários do Banco do Brasil[32] (the closed private pension fund for employees of the Brazilian federal government-owned bank)
  • Sistel
  • Valia

Canada[]

Government[]

Private[]

  • (CAAT)
  • Boilermakers Pension Fund Trust
  • Labourers' Pension Fund of Central and Eastern Canada (LIUNA)
  • Teamsters Canadian Pension Plan
  • Telecommunication Workers Pension Plan
  • UFCW Canadian Pension Plan

Chile[]

  • Chile pension system

China[]

Greece[]

Government[]

  • Public Employees Pension Fund[33]

Private[]

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

Hong Kong[34][]

India[]

  • Employees' Provident Fund Organisation – a statutory social security body of the Government of India that administers a mandatory Provident Fund Scheme, Pension Scheme and an death/disability Insurance Scheme. Provident Fund is applicable for employees across all establishments (private as well as government, subject to criteria). EPFO is the largest social security organisation in India with assets well over ₹ 5 lakh crore (US$159 billion) as of 2014.[35]
  • 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 and 70 are eligible to join.[36]

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[]

Morocco[]

Nepal[]

  • Employees Provident Fund Nepal

Netherlands[]

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 three pillars. One is the state pension (Pillar I – Mandatory), the second is a private mandatory pension where the state transfers a percentage of the contribution it collects for the public pension, and the third is 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.[38]

Saudi Arabia[]

  • General Organization for Social Insurance

Serbia[]

  • The pension system in Serbia is made of three pillars. One is the state pension (Pillar I – Mandatory), where every insured person is obliged to pay contributions from their paycheck, the second is a voluntary state pension, where an uninsured person is voluntarily included in state pension system, and the third is an optional private pension (Pillar III – Voluntary).[39]

Singapore[]

Switzerland[]

Turkey[]

Government[]

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.

Private[]

  • Armed Forces Pension Fund[40]

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

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.[41] The United States has $19.1 trillion in retirement and pension assets ($9.1 trillion in private funds, $10 trillion in public funds) as of December 31, 2016.[42] The largest 200 pension funds accounted for $4.540 trillion as of September 30, 2009.[43]

Government[]

Main article: Public employee pension plans in the United States

See also[]

References[]

  1. ^ "Location Selector". Willis Towers Watson.
  2. ^ "Asset Management 2020 - A Brave New World" (PDF). Retrieved March 3, 2021.
  3. ^ OECD
  4. ^ For examples, see "Local Government Law Library". Archived from the original on 6 September 2012. Retrieved 15 May 2011.
  5. ^ "The 20 largest pension funds of the globe". www.consultancy.uk. Retrieved 2018-03-11.
  6. ^ [1] Top 100 Largest Public Pension Rankings by Total Assets
  7. ^ Budget of the United States Government, FY2022, published May 28, 2021. Value as of September 30, 2020 Office of Management and Budget Retrieved June 13, 2021
  8. ^ Superannuation Statistics, March 2021. Value as of June 1, 2021. Retrieved June 1, 2021
  9. ^ 2020年度第3四半期運用状況 GPIF
  10. ^ Jump up to: a b c d "Annual Survey of Large Pension Funds and Public Pension Reserve Funds" (PDF). OECD. 2016-04-21. Retrieved 2016-10-28.
  11. ^ Budget of the United States Government, FY2022, published May 28, 2021. Value as of September 30, 2020. Office of Management and Budget Retrieved June 13, 2021
  12. ^ Budget of the United States Government, FY2022, published May 28, 2021. Value as of September 30, 2020. Office of Management and Budget Retrieved June 13, 2021
  13. ^ Financial Statements of the Thrift Savings Fund December 31, 2020 and 2019. As of December 31, 2020. Thrift Savings Fund. Retrieved May 14, 2021
  14. ^ "Archived copy". Retrieved 2020-07-04.
  15. ^ "CPP Fund Totals $317 Billion at 2017 Fiscal Year-End". www.cppib.com. Retrieved 2018-02-24.
  16. ^ "Page d'accueil". Caisse de dépôt et placement du Québec | Investisseur institutionnel de long terme | Gestionnaire d’actif.
  17. ^ "CalPERS Reports Preliminary 4.7% Investment Return for Fiscal Year 2019-20". Retrieved 2021-03-03.
  18. ^ Jump up to: a b "The world's 300 largest pension funds – year end 2014". Willis Towers Watson.
  19. ^ "Performance - Ontario Teachers' Pension Plan". www.otpp.com.
  20. ^ "Current Investment Portfolio - CalSTRS.com". Retrieved 2021-03-03.
  21. ^ https://www.pfzw.nl/over-ons/pers/paginas/kwartaalberichten.aspx
  22. ^ http://www.emol.com/noticias/economia/2015/01/23/700604/donde-estan-invertidas-las-platas-de-los-trabajadores-en-chile.html
  23. ^ Asher, Mukul (22 January 2021). "How the EPFO can improve as India's largest social security provider". Moneycontrol.
  24. ^ "Annual Announcement of Financial Statements 2020".
  25. ^ "OMERS - 2020 Annual Report Highlights". Retrieved 2021-03-03.
  26. ^ Official WebSite of PREVI - English Version
  27. ^ [2]
  28. ^ [3]
  29. ^ "FRR 2012 Annual Report" (PDF).
  30. ^ "NPRF". Archived from the original on 2017-02-10. Retrieved 2020-05-03.
  31. ^ "Choose an Industry SuperFund". Industry Super.
  32. ^ http://www.previ.com.br Official Website of PREVI
  33. ^ "ΜΕΤΟΧΙΚΟ ΤΑΜΕΙΟ ΠΟΛΙΤΙΚΩΝ ΥΠΑΛΛΗΛΩΝ | Μ.Τ.Π.Υ."
  34. ^ "Official website of Mandatory Provident Fund Schemes Authority".
  35. ^ EPF
  36. ^ PFRDA
  37. ^ [4] Archived November 2, 2010, at the Wayback Machine
  38. ^ http://www.csspp.ro
  39. ^ http://pio.rs/eng/
  40. ^ "Armed Forces Pension Fund".
  41. ^ 29 USC § 1002 - Definitions | Title 29 - Labor | U.S. Code | LII / Legal Information Institute. Law.cornell.edu. Retrieved 2013-07-18.
  42. ^ Federal Reserve Statistical Release, Financial Accounts of the United States, Fourth Quarter 2016 Archived 2018-01-04 at the Wayback Machine, see pp.94-99. Values as of December 31, 2016. Federal Reserve Board of Governors. Reported March 9, 2017. Retrieved May 18, 2017
  43. ^ "P&I Online". Archived from the original on 2011-10-01. Retrieved 2010-07-17.
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