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A pension fund is 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.
Pension funds are important shareholders of listed and private companies. They are especially important to the stock market where large institutional investors like the Ontario Teachers' Pension Plan dominate. The largest 300 pension funds collectively hold about $6 trillion in assets.[1] In January 2008, The Economist reported that Morgan Stanley estimates that pension funds world-wide hold over US$20 trillion in assets, the largest for any category of investor ahead of mutual funds, insurance companies, currency reserves, sovereign-wealth funds, hedge funds, or private equity.[2]
Contents [hide]
1 Classifications
1.1 Open vs. closed pension funds
1.2 Public vs. private pension funds
2 Examples
2.1 Canada
2.1.1 Government
2.1.2 Private
2.2 Chile
2.3 The Netherlands
2.4 Singapore
2.5 United States
2.5.1 Government
3 Largest pension funds
4 See also
5 References
[edit] Classifications
[edit] 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.[1]
Closed pension funds are further subclassified into:
Single employer pension funds
Multi-employer pension funds
Related member pension funds
Individual pension funds
[edit] 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.
[edit] Examples
This list is incomplete; you can help by expanding it.
[edit] Canada
[edit] Government
Caisse de dépôt et placement du Québec
Canada Pension Plan
Alberta Investment Management
[edit] Private
Ontario Teachers' Pension Plan (union-controlled)
Hospitals of Ontario Pension Plan (HOOPP)
OMERS Administration Corporation (OMERS)
[edit] Chile
Chile pension system
[edit] The Netherlands
Stichting Pensioenfonds ABP (ABP)
Stichting Pensioenfonds Zorg en Welzijn (PFZW, formerly PGGM)
[edit] Singapore
Central Provident Fund
[edit] United States
[edit] Government
California Public Employees' Retirement System (CalPERS)
California State Teachers' Retirement System (CalSTRS)
Federal Retirement Thrift Investment Board
Illinois Municipal Retirement Fund
Retirement Systems of Alabama
Kansas Public Employees Retirement System (KPERS)
Kansas City Public School Retirement System (KCPSRS)
Minnesota Public Employees' Retirement Association (MNPERA)
Minnesota Teachers' Retirement Association (MNTRA)
Fire and Police Pension Association of Colorado (FPPA)
[edit] Largest pension funds
Country Fund Assets US$ (in billions) Inception Origin Approx wealth per citizen
Japan Japan Government Pension Investment $935.5 N/A Non-commodity N/A
Netherlands Stichting Pensioenfonds ABP (ABP) $313 (€215) 1922 Non-commodity N/A
Canada (Quebec) Caisse de dépôt et placement du Québec (the Quebec Pension Fund $258 1965 Non-commodity N/A
United States (California) California Public Employees Retirement System (CalPERS) $218.2 N/A Non-commodity N/A
Netherlands Stichting Pensioenfonds Zorg en Welzijn (PFZW, formerly PGGM) $123 (€85) 1969 Non-commodity N/A
Canada CPP Investment Board (Canada Pension Plan) $122.7 1997 Non-commodity N/A
Canada (Ontario) Ontario Teachers' Pension Plan $109 1990 Non-commodity N/A
Ireland National Pension Reserve Fund (NPRF) $30[3] 2001 Non-commodity ?
[edit] See also
Global assets under management
Pension insurance contract
[edit] References
^ Global Investment Review
^ The Economist Jan 17, 2008 (economist.com)
^ Legal Terms & Conditions
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