Double Taxation applications and claims: applicants/claimants: pension funds: What a pension fund is
A pension/provident/superannuation fund is usually created by an employer for the benefit of its employees. The fund is intended to provide them with a pension/ annuity either when they retire at a specified age or at an earlier age if they become unable to work for any other reason. There is often also provision for the widows/widowers/children of deceased employees.
The fund is usually created by a trust deed/set of rules which sets out the terms and conditions of the fund. The fund is administered by trustees who may be representatives of the employer and employees or quite independent persons. These can include a trustee company or other professional body, or (in Japan) a trust bank.
The fund is financed by contributions from the employer and the employees. The capital is invested by the trustees in various types of securities.