Pension; both public or private pension as the name suggests is a procedure that ensures a person on active payroll is assured an income after the person reaches retirement.

Retirement plans or superannuation is usually referred the pension which is granted on retirement. the retirement plan can be run by the the government, the employers, insurance companies, or other institutions like the trade unions or employee unions. The pension premium is paid in lump-sum and after a period of time it matures and gives a regular sum of money which is known as pension.

A pension; both public or private pension which is run by the employer for the benefit of the employee is usually known as the employers or occupational pension.

Labor unions or other institutions can also run a pension scheme. Employers or occupational pension schemes are usually deferred compensations and also carries many tax benefits with it. Some pensions additionally can carry insurance benefits and the benefits are paid to

Pensions Funds are pools of assets which are used collectively to finance various pension funds for the elderly people.  Pension funds; both public or private pension are an important entity in the finance market and are important shareholders of both listed and private companies.  Pensions funds pump in much needed funds into the stock market.  If one can collate all the major  Pensions funds of the world together account for assets of more than $20 trillion in assets. No other fund including mutual funds, insurance companies, currency reserves, sovereign wealth funds, hedge funds, or private equity have so much capital.

There are two types of pensions funds- Open pensions funds and the closed pension funds.  Open pensions funds encompasses one pension plan with no limit on membership. Closed pensions funds are restricted to certain members in a group and others outside the group are not allowed to join them. The closed pensions funds can be further subdivided into :

Single employer pension funds

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

A pension fund which is regulated by the public sector law is is known as a public pensions funds and those which are regulated by a private sector law is known as private pension funds. The differences between the private and public sector pensions funds can vary from state to state and country to country.

Pensions funds; both public or private pension have contributed immensely in the development of global economy by encouraging the flow of excess funds across borders fro the industrially advanced G-8 countries to developing economies and western stock exchanges from where it is used to develop a truly integrated world economy. But there are dissenting voices also which view the pensions funds as a stimulant for economic growth in better times investing in national and domestic market making the economy more integrated and leads to further ease of cross border investments but when the economy falters or goes into a crisis the capital flight can occur with considerable ease and leaving the countries economy in shambles. But as a whole pensions funds have served the economy well infusing fresh inputs of capital and giving impetus to the economic growth.