Are you sure?

Private pension fund members to get real yields by end of August

Private pension fund members who are returning to the state pension pillar can get the real yield on their assets by the end of August at the latest, the government's pension protection commissioner Gabriella Selmeczi said.

The two-week period during which the real yields on the assets will be paid out is to be set in a government decree, she said.

Hungarian private pension fund members had until the end of January to opt out of a move, together with their pension assets, to the state pension pillar. About 97% of private pension fund members are returning to the pillar. These Hungarians will get any yield on their assets over the rate of inflation.

The transfer of the assets from the funds to the state and the payment of the real yields could have dragged on until the end of the year, but “this is unacceptable”, Selmeczi said.

The government wants the Government Audit Office (Kehi) to close an investigation of the funds as soon as possible, she added.

Parliament approved amendments on Monday that mandate Kehi to audit the transfer of the assets as well as the assets themselves, and to review the funds' investment practices and operating costs for the past twelve years.

The amendments make May 31 the valuation day for the pension fund assets to be transferred. Earlier the law put the valuation day on the last day of the month in which settlement takes place. The amendments set June 12 as the deadline for the pension funds to transfer the assets to the state. The funds have until July 20 to reclaim the real yields on the assets.

The funds must send members a form to fill out regarding the payment of the yields by the end of March. Members who do not return the forms by May 31 will have their real yields sent to their permanent address.