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Private pension funds can start paying real yields in two weeks

Private pension funds can start paying in two weeks real yields to members who have returned to the state pension pillar, the prime minister's commissioner for pension protection Gabriella Selmeczi said at a press conference on Thursday.

Hungarian private pension fund members had until the end of January to opt out of a move, together with their pension assets, to the state pension pillar. About 97% of private pension fund members decided to return to the state pillar. These Hungarians will get any yield on their assets over the rate of inflation by August 31.

Selmeczi said private pension funds transferred HUF 2,950 billion to the state, including HUF 1,345 billion in government securities. The budget act stipulates that HUF 529 billion of the assets must be transferred to the state pension fund and the rest is to be used to reduce state debt, she added.

Answering a question, Selmeczi said there were some minor questions in dispute on the transfer, such as the structure of the transferred assets.

A registry of individual social security "accounts" on which a record of contributions is kept will be launched from the start of 2012, she said. The aim of the accounts is to make future pension payouts more predictable, she added.