Changes regarding the private pension fund system in Hungary have just accepted lately and have already raised several questions and problems. Such problems are liquidity problems of funds in the near future, the uncertainties around the principle of legal certainty and the self-care intentions from the private persons’ side which are proven very low though could fall further.

The law currently contains provisions to divert the revenues from the private pension funds to the state budget temporarily for the next 14 months. However, it has already become apparent that this decision would not be only temporary. The fact, that the government offered possibilities for the taxpayers to return to the state pension system, indicates such a long-term plan.

While György Matolcsy, Minister of State Economy declared that the citizens’ money is safer in the State Budget than in the pension funds, not everyone agrees with this statement, most of the representatives of pension funds opposed the idea.

In fact, while private funds register payments and funds on separate accounts for every individual taxpayer, in the state accounting system such an individual registry does not exist and it will not be changed.

The Pension Funds Association examines the possibility for a referendum initiative, which aims to change the new regulation and inquire the citizens about their wish. However, it might not be able to validate such an initiative since referendum cannot be held on issues which affect or relate the state budget. Thus according to the Constitution, citizens do not have voice over the state budget.