A CIKK MAGYAR NYELVŰ VÁLTOZATA

The National Assembly approved the proposals on free choice of pension funds and redirection of pension contributions. There are many uncertainties regarding the rights, but soon everyone will be entitled to change membership from private pension fund to state-owned fund.

The new regulation removes the obligation for school-leavers to join to a private pension fund and allows to change to the state pension system to those already members in a private pension fund. The individuals have to make their decision by the end of 2011.

Who decides to change, will lose the entire savings kept on the private pension account, since it will be transferred to the state budget which currently does not have the possibility to record seperately each individual account. This means, that their own personal savings will be lost in the big hat. Although there are promises that no one will lose anything, however there is no any developments made yet to improve the current conditions.

The public pension fund is currently working on a system which will make possible to separate the payments on individual accounts, however it exists only on a planning stage still.

Another important issue to consider is the possibility to inherit the savings which is already present in private pension funds. In case of the public pension system however heritability does not exist being a “pay as you go” (PAYG) system.

The amendment relating to the redirection of pension contribution payments has also been accepted which will redirect the payments of the next 14 months from the private pension funds to the state budget. This means redirection of appr. 400 billion HUF, for which no compensation policy has been suggested yet.

The Law has to be countersigned by the chairman of the National Assembly and the President of the Republic, and will enter into force on the day following its official publication, so even within a few days from now.

 A CIKK MAGYAR NYELVŰ VÁLTOZATA