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Pension funds with legal personality: The pension fund with legal personality is an independent. legal entity created to manage a pension fund and is the same legal entity as the fund itself. Examples of. this type of pension fund construction are foundations or mutual associations. 5.
Pension as a retirement plan has always been there. These form a fund for the employee which he gets upon his retirement. The major attraction of a pension plan is that the contribution to the fund is made by the employer. This contribution is often dependent upon the pay of the employee. There is no tax benefit to the employee every year as he is not making any contribution to the fund.