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Gov't MPs submit bills suspending state payments to private pension funds

MPs of governing Fidesz submitted a bill to Parliament at the weekend that effectively suspends payments by the state to private pension funds till the end of 2011, the text of the bill published on the website of Parliament shows.

Prime Minister Viktor Orbán announced on Wednesday that the government would suspend payments to private pension funds from November until the end of 2011 to shore up the deficit. The payments to the funds come to about HUF 30 billion a month.

The bill submitted to Parliament would make private pension fund members' entire monthly payment a "contribution" between November 2010 and December 2011. Now members pay 1.5% of their wages as a contribution to the state's pay-as-you-go pension system and 8pc as a "membership fee" due to their private pension funds.

Those who are only members of the state pension system pay a 9.5% contribution. (MTI-Econews)