Pension Trust Fund Law and Legal Definition

A pension trust fund is a fund that is made up of money that has been contributed to by both the employer and the employee for pension benefits. A trustee administers, the funds and invests the money, collects the earnings and interest and distributes the benefits.

The financial statements of the funds are prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.