Earlier Pension Funds Association existed in the form of federation of employees’ pension fund from the year 1967 and it took the present name from 2004. The primary objective of Pension funds Association is to provide benefits for those persons who broke away from pension funds scheme within 10 years of membership by aggregating the different plans for them. This association engages in the management of fixed assets which acts as financial source for pension.
Pension Funds Association also initiates study and investigation on the issues of corporate pension at home and abroad and submit the proposal to all quarters in this regard. It also supports the essential proceedings for the development of its members by providing counseling and advice to them. It bridges the gap between the executives and the employee. The association engages itself in the formation of pension fund centers for the benefit of its member companies and recipients.
The under mentioned activities are carried out by Pension Funds Association.
It engages in paying pension benefits for all its members which is the major role of this entity. It conducts research and encourages study on issues related with corporate pension. The association calls for experts from outside and set up a committee and group comprising of experts and members for rationalizing the problems in connection with the pension systems and management of corporate pensions. It finances the study related to the development of business concerning pension matters. The Pension Fund Association also gives training to all of its members and executives for gaining right knowledge about the investment and management of pension funds. Consultation services are also provided by this body for its employees and members giving guidance and counseling. By all these scheduled action plans, the association functions in an efficient manner giving benefits to its members and manages the assets for the welfare of members who secede from membership in the middle of the year.
If the association does not actively manage the asset then it is likely get into chaotic situation and hence asset management is the primary objective of Pension Fund Association. The money collected in the form of pension from its employees is used for investment which produces higher yield in long duration of time. Only by investing in money yielding funds it is possible to increase the pension assets more than its liability. Any money invested in funding always carries some amount of risk. It is not possible to expect high yield without taking any risk. The association strives to diversify its assets in securities, bonds and mutual funds. It aims in managing the assets effectively using the means of diversification of pension assets for the benefit of its members.