Management of funding

The way in which pensions are financed. This is mainly either through funded schemes where contributions are paid into a fund which is intended to provide for future pensions or through unfunded, or Pay-as-you-go (PAYG), schemes where contributions are paid to finance the pensions of people currently retired. Schemes can also be mixed where pensions are financed partly from a fund and partly from current contributions (e.g. schemes in transition between the two or schemes using reserves to complement a PAYG scheme).