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PM says from now on private pension fund contributions to be transferred to state

Prime Minister Viktor Orban said on Friday morning that private pension fund contributions will from now on be transferred to the state pension fund.

Speaking on a public radio programme, Mr Orban said private pension fund contributions will now always be transferred to the state pension fund. He said this was not a one-off decision and that the 10% contributions paid by the approximately 100,000 people who stayed in the private pension funds will always go to the state pension fund and "this will now stay like this".

Economy minister Gyorgy Matolcsy announced on Thursday that a HUF 302bn adjustment to original 2012 budget plans will include HUF 120bn from the pension contributions of those who remained in private pension funds, adding that the private pension membership fees will probably redirected in 2013 too.

Mr Orban emphasised that the main figures of the 2012 budget are expected to remain unchanged and the government will try to keep to the original schedule for adopting the budget.