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Private pension fund OTP Nyugdíjpénztár transfers assets to state

OTP Nyugdíjpénztár, the private pension fund unit of OTP, Hungary’s largest lender, on June 8 transferred assets of members returning to the state pension scheme.

The asset’s market value is about HUF 685 billion, the fund said.

Hungarian private pension fund members had until the end of January to shift back to the state scheme along with their pension savings or face losing their state pensions. About 97% of private pension fund members opted to do so. These Hungarians will get any yield on their assets over the rate of inflation.

OTP Nyugdíjpénztár said it would inform former members of the size of payouts on yields on its website from July 15.

OTP Nyugdíjpénztár said more than 18,000 of its members with about HUF 40 billion in retirement savings chose to stay with the fund.

Legislation stipulates that private pension funds must complete the transfer of the assets to the Pension Reform and Debt Reduction Fund by June 12. The effective deadline for the transfer is June 14, however, as June 12 and 13 are market holidays, financial market regulator PSzÁF said in an document published on June 3 instructing the funds on tasks and deadlines related to the transfer.