Provident fund is another name for
pension fund
A pension fund, also known as a superannuation fund in some countries, is any plan, fund, or scheme which provides retirement income.
Pension funds typically have large amounts of money to invest and are the major investors in listed and priva ...
. Its purpose is to provide employees with
lump sum
A lump sum is a single payment of money, as opposed to a series of payments made over time (such as an annuity).
The United States Department of Housing and Urban Development distinguishes between "price analysis" and "cost analysis" by whether th ...
payments at the time of exit from their place of employment. This differs from pension funds, which have elements of both lump sum as well as monthly pension payments. As far as differences between
gratuity
A gratuity (often called a tip) is a sum of money customarily given by a customer to certain service sector workers such as hospitality for the service they have performed, in addition to the basic price of the service.
Tips and their amount ...
and provident funds are concerned, although both types involve lump sum payments at the end of employment, the former operates as a
defined benefit plan
Defined benefit (DB) pension plan is a type of pension plan in which an employer/sponsor promises a specified pension payment, lump-sum, or combination thereof on retirement that depends on an employee's earnings history, tenure of service and age, ...
, while the latter is a defined contribution plan.
Specific provident funds include:
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Employees' Provident Fund Organisation
The Employees' Provident Fund Organisation (EPFO) is one of the two in statutory social security bodies under the Government of India's Ministry of Labour and Employment and is responsible for regulation and management of provident funds in I ...
, India's statutory retirement plan
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Mandatory Provident Fund
The Mandatory Provident Fund (), often abbreviated as MPF (), is a compulsory saving scheme (pension fund) for the retirement of residents in Hong Kong. Most employees and their employers are required to contribute monthly to mandatory provident f ...
, Hong Kong's retirement plan
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Central Provident Fund
The Central Provident Fund Board (CPFB), commonly known as the CPF Board or simply the Central Provident Fund (CPF), is a compulsory comprehensive savings and pension plan for working Singaporeans and permanent residents primarily to fund their ...
, Singapore's retirement plan
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Employees Provident Fund (Malaysia)
Employees' Provident Fund (EPF; Malay: Kumpulan Wang Simpanan Pekerja, KWSP) is a federal statutory body under the purview of the Ministry of Finance. It manages the compulsory savings plan and retirement planning for private sector workers in M ...
, Malaysia's retirement plan
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Employees Provident Fund (Nepal) Employees Provident Fund (Nepali:कर्मचारी सञ्चय कोष) Nepal is the pension fund/provident fund for employees of government and private sector of Nepal. The Fund is currently managing provident funds of 600,000 employee ...
, Nepal's retirement Plan
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Central Provident Fund (South Africa)
Sanlam is a South African financial services group headquartered in Bellville, Western Cape, South Africa. Sanlam is the largest insurance company in Africa. It is listed on the Johannesburg Stock Exchange, the Namibian Stock Exchange and the ...
, a retirement trust
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, Mexico's public pension fund and largest mortgage lender
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National Social Security Fund (Kenya)
The National Social Security Fund is a Kenyan government agency responsible for the collection, safekeeping, responsible investment and distribution of retirement funds of employees in both the formal and informal sectors of the Kenyan Economy. ...
* , China mainland's retirement plan
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Pension funds
Broad-concept articles