Even though there may be confusion between pension funds and pension plans, it is important to note that they are two different concepts, although necessarily linked. A Pension plan is a financial product marketed by the bank or financial institution, which aims to complement, in its day, the pension of retirement. When the corresponding contract is signed, all the conditions related to said plan are specified, as well as logically. the money that is being contributed to it.
Difference between pension funds and pension plan
For its part, the pension plan is managed by a Management company, through a patrimonial entity, without legal personality, that is, the pension fund. Therefore, the distinction between the pension plan and the pension fund is that, while the former is the financial product, the latter is the investment vehicle. Therefore, although both must exist, as we currently understand, it is possible that the same pension fund corresponds to several different pension plans, without prejudice to the fact that different conditions may be established for each of them, relating to commissions, or others.
Pension funds are created, in accordance with the law, exclusively to comply with pension plans. Its management, custody and control, must also be done according to the terms established in the law on pension plans and funds. Thus, we could say that a pension fund is similar to a Investment fundAlthough it has been created with a specific purpose, the management of the pension plan.
It is the managing entity of the pension fund, the entity in charge of its administration, and, therefore, the one that must determine where to invest, how much and when. However, said managing entity does not custody the securities, since they are held by an independent depositary entity, which, in turn, is supervised by the Participant's Control and Defense Commission and the General Directorate of Insurance and Funds of pensions.