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PM, MPs propose political declaration guaranteeing protection of pension fund members

Prime Minister Viktor Orbán and Fidesz MPs Lajos Kósa and János Lázár proposed Parliament approve a political declaration guaranteeing the “protection of mandatory private pension fund members”.

In the interest of ensuring the security of the pension savings of Hungary's almost 3m mandatory private pension fund members, guarantees must be made that an institution with individual accounts will be established for private pension fund members that return to the state system, that payments made into these accounts maintain their value, that losses of members returning to the state pension pillar be compensated, and that yields on the assets brought by private pension fund members returning to the state pillar by January 31, 2011 be tax free, the signers said. The circumstances of the management of private pension fund members' payments must be reviewed, they added.

Parliament will soon vote on government proposed measures allowing mandatory private pension fund members to return, with their assets, to the state pillar. Members who opt out of the move stand to lose part of their retirement savings. (MTI – Econews)