Are you sure?

Voluntary pension funds could become more expensive

Voluntary pension funds may not be able to avoid increasing deductions from members' payments, leaving less for pensions, the business daily Napi Gazdaság said on Monday.

Currently, most funds take 10% or less of their members' payments for operating and liquidity funds, the paper said. However, PSZÁF figures show the voluntary pension funds' revenues earmarked for operation do not cover their expenditures. The losses came close to HUF 1 billion (€3.73 million) in the first three-quarters of this year.

In the case of voluntary health insurance funds, operating expenses exceeded revenues earmarked for such purposes by HUF 1.8 billion in the same period.

Voluntary pension funds saw a continued fall in the number of their members in the third quarter of this year, the paper said, quoting figures published by the financial market regulator PSZÁF. The number of voluntary pension fund members totaled 1.338 million at the end of September 2009, almost 70,000 less than twelve months earlier. The reduction followed increasing unemployment, the paper said.

The funds managed assets worth HUF 783 billion at the end of September, HUF 51,2 billion more than twelve months earlier.

Assets of voluntary health funds stood at HUF 50.9 billion at the end of September, up by HUF 6.6 billion from a year earlier. (MTI-ECONEWS)