Private pension fund members returning to the state system may be given the yields of their mandatory private pension fund payments as early as end of April, Istvánné Juhász, secretary general of Stabilitás pension fund association said.
Hungary’s private pension fund members had until January 31 to decide whether to stay with their fund or move back to the state pillar. Those returning – 96.8% of members, according to the most recent data from national pension fund administrator ONYF – may decide whether they would like take home the yields of their investments, if any, or to have it transferred to a voluntary pension fund. Istvánné Juhász, secretary general of Stabilitás pension fund association expects that a large number of members will see positive real yields.
The transfer of assets is a task that has to be carefully prepared. According to the law, pension funds have to collect the data on their members’ decisions by March 1, and, after assessing the situation, will have 45 days to work out a detailed plan for the transfer. The secretary general believes that this amount of time is both necessary and sufficient, as preparations are already underway, she explained in an interview with Inforádió on Thursday.
However, Stabilitás is waiting for the decision of the Constitutional Court regarding the legality of the legislation. A timely decision would make it easier to intervene in the process before actual transfers take place. Prime Minister Viktor Orbán made it clear, though, that he considers the case settled. In absence of such a reversal by the court, it is expected that about 4–8 pension funds may remain in operation out of the current 18. Some questions remain open, such as what happens to the assets of the people whose pension fund ceases to exist. (DK)