Pension fund principles

Abstract

A scheme of pensions to be granted to employees on retirement from service can be effected either by means of a contract with an assurance company or by the establishment of a "private" pension fund. The choice of method is a problem of some difficulty depending to a large extent on the size and stability of the employing concern and on the nature of the benefits desired, but the principles which govern the working of a scheme are the same whether its success is the responsibility of a contracting party or of private trustees. I propose to offer a few comments by way of a general survey of these principles, which, it will be seen, require a close study and a broad outlook for their full appreciation.