What is Pension Fund and Government Pension? State the legislations governing pension in India.

Pension Fund Pension Fund means a fund established by an employer to facilitate and organize the investment of employees' retirement funds which is contributed by the employer and employees. The pension fund is a common asset pool meant to generate stable growth over the long term, and provide pensions for employees when they reach the end of their working years and commence retirement. Pension funds are commonly run by some sort of financial intermediary for the company and its employees like N.P.S. scheme is managed by UTIAMC (Retirement Solutions), although or some larger corporations operate their pension funds in-house. Pension funds control relatively large amounts of capital and represent the largest institutional investors in many nations. Pension funds play a huge role in development of the economy and it play active role in the Indian equity market. This pension fund ensures a change in their investment attitudes and in the regulatory climate, encouraging them to increase their investment levels in equities and would have a massive impact on capital market and on the economy as a whole. Pensions broadly divided into two sectors: A. Formal sector Pensions B. Informal sector Pensions Pensions in India can be divided into three categories such as pensions under an Act or Statute, Government pensions and voluntary pensions. Government Pension Government pensions in India are referred under the Directive Principles of State Policy and are therefore not covered under a Statute. The Government amended the regulations to put in place the new pension system. The old scheme continues for the existing employees (i.e. those who joined service prior to January 1, 2004). Pensions for government employees would include employees of the central as well as the state governments. (A) Central Government Pensions like Civil servants pensions, Defences, Railways and Posts (B) State Government Pensions, Bank pensions like Reserve Bank of India (RBI), Public Sector Banks, National Bank for Agriculture and Rural Development (NABARD) and other banks pensions. Legislations governing pension in India There are following three Acts for pensions in India. 1. Pensions under the Employees Provident Fund & Miscellaneous Provisions Act 1952 (EPF&MP): These include the Employees Provident Fund, Employees Pension Scheme, and Employees Deposit Linked Insurance Scheme. 2. Pensions under the Coal mines Provident Fund & Miscellaneous Provisions Act 1948: These include Coal mines provident fund, Coal mines pension scheme & Coal mines linked insurance scheme. 3. Gratuity under the Payment of Gratuity Act, 1972: There are other provident funds in India like Assam Tea Plantations Provident Fund, J&K Provident Fund, and Seamens Provident Fund etc.