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Last-minute change makes real yields on private pension funds tax exempt

A last-minute change to proposed legislation transforming Hungary's private pension system would make yields of mandatory private pension funds over the rate of inflation tax exempt for fund members who return to the state pension pillar.

The change was submitted by National Economy Ministry György Matolcsy on Monday, a week after the prime minister and two MPs of governing Fidesz proposed Parliament approve a political declaration making real yields on assets returned to the state pillar by the end of January tax free.

Parliament will vote on a proposal on Monday that gives mandatory private pension fund members until January 31, 2011 to opt out of a transfer of their assets to the state pillar. If they do opt out of the move, they will lose all future contributions into the state system by their employers. (MTI-Econews)