What does a pension fund do with money beyond its near-term benefit needs?

1. A pension fund first sets aside enough money to pay the benefits falling due in the near term. 2. Whatever remains after that reserve is invested rather than held idle. 3. The investments run to business loans, stocks, bonds and real estate. 4. Funds often invest large sums in the stock of the sponsoring employer as well. 5. The order matters, since near-term benefits are covered before anything is put at risk. 6. Holding the surplus as cash would forfeit the returns that help fund future benefits, which is why no fund does it. _Source: OpenStax Introduction to Business (CC BY 4.0), Ch 15 "Understanding Money and Financial Institutions", section 15.3 U.S. Financial Institutions_