Private pension bill will not have retroactive effect

Telco

A bill submitted to Parliament by the government that would force private pension funds whose members are not paying their dues to wind up will not have retroactive effect, the National Economy Ministry said on Monday, responding to a query by Hungarian news agency MTI.

The bill, submitted on Friday, would force funds who fail to collect dues from at least 70% of members during any two months in the preceding six-month period to wind up.

The ministry noted earlier that only a couple thousand private pension fund members still pay their monthly dues, according to data from the National Bank of Hungary.

Fresh MNB data show there were 61,523 private pension fund members at the end of September. Payments into the funds reached HUF 586 mln in Q1-Q3, but they had a combined operating loss of HUF 141 mln.

Income from investments of the funds reached HUF 14.9 bln in Q1-Q3. Market value of the funds' assets came to HUF 205.4 bln at the end of September.

Nearly all private pension fund members returned to the state pillar under a government initiative in 2011, bringing more than HUF 2,900 bln in assets with them. Membership in the funds was earlier mandatory for many Hungarians.

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