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11 of 18 private pension funds could remain after returns to state system

Eleven of Hungary's 18 private pension funds will have more than 2,000 members -- the minimum number required to operate under law -- after almost 97% of the funds' members opted to return to the state pillar, figures published by the state pension directorate ONYF reveal.

Parliament recently approved legislation that moves private pension fund members, together with their assets, back to the state pension pillar. Members who wished to opt out of the move had to make a declaration by January 31.

The detailed ONYF data show 97,422 people, or 3.12% of the total 3,118,200 private pension fund members, opted out of the move to the state pillar by the end of January. The revised, but still preliminary, figure is lower than the initial estimate of just over 102,000 announced on February 1. ONYF said it does not expect the figures to change much when declarations by members who applied for waivers are submitted by the final deadline at the end of February.

Almost 25% of those who opted to stay with their private pension funds were born between 1976 and 1980, those born between 1971 and 1975 accounted for 21% and those born between 1981 and 1985 made up 17%, the data show.

More than one-third of members who opted to stay live in Budapest and another third lived in cities. About 26% live in villages and less than 1pc live abroad.

The eleven private funds with more than 2,000 members are (followed by number of members of total members who remained):

ING Voluntary and Private Pension Fund (19,197 of 523,767)

OTP Private Pension Fund (17,641 of 756,021)

Aegon Voluntary and Private Pension Fund (16,889 of 602,017)

AXA Voluntary and Private Pension Fund (13,269 of 282,758)

Allianz Hungaria Voluntary and Private Pension Fund (10,782 of 477,345)

MKB Private Pension Fund (3,279 of 38,346)

Aranykor National Voluntary and Private Pension Fund (3,090 of 72,165)

Budapest Private Pension Fund (2,680 of 30,441)

ERSTE Voluntary and Private Pension Fund (2,390 of 66,285)

GENERALI Voluntary and Private Pension Fund (2,166 of 76,156)

Évgyűrűk Private Pension Fund (2,141 of 104,324)

The smallest private pension fund operated with a few more than 2,400 members before the move to the state pillar. (MTI – Econews)