Investment company Questor has introduced the first occupational pension fund, Questor Foglalkoztatói Nyugdíjszolgáltató Zrt, with HUF 1.05 billion registered capital, the company’s CEO Loránd Zugrovics announced Wednesday.
The company started operations on February 9 after receiving the approval of the Hungarian Financial Supervisory Authority (PSZÁF).
The company has not yet signed any contract but is in talks with several prospects, Zugrovics said. He hopes that the number of customers will reach a couple of thousand by the end of the year.
Questor targets the entire spectrum of employers operating in Hungary with the new service including multinational firms, big Hungarian companies as well as SMEs. Occupational pension funds will enable multinational firms to introduce their global retirement plans in Hungary, while Hungarian businesses will be able to improve the loyalty of the employees, thus decreasing fluctuation. SMEs could reduce their labor costs as contributions for such schemes qualify for tax reliefs.
The fund is in line with both EU and domestic regulations. Occupational pension schemes have a long-tradition in the US and western European countries, Zugrovics said. This is the true second pillar of the pension systems beside the state-pillar, he noted. Self provision in Hungary is still in the initial phase, it will not ensure financial stability for the pension years, he added.
Within a retirement plan, Questor offers different constructions, for instance, for the management or key employees, depending on the employers’ needs. Customers may choose between the so-called basic package with the “balanced portfolio” or tailormade packages with the option of any of the three available portfolios. Questor provides three portfolios including a conservative, a balanced and a dynamic portfolio. (GL)