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Former private pension-fund members to receive average real yield of HUF 76,030

Those who left Hungary's private pension-fund system will receive an average real yield of HUF 76,030, the government's pension protection commissioner Gabriella Selmeczi announced on Friday.

In addition to real yields, the figure includes the extra payments made into the private pension funds which is also due back to former members.

Selmeczi said that 2,450,090, or 81.1%, of the 3,020,778 former members of the private pension-fund system will receive real yields.

The payments due to former members as real yield and extra contribution came to HUF 233 billion, Econews calculated.

Hungary's 18 private pension funds transferred HUF 2,946 billion of assets of members returning to the state pension pillar to the recently created Pension Reform and State Debt Reduction Fund by the June 2 deadline.

The funds submitted their application for the funds due back to their former members by July 20 deadline, and started payments to former members on Wednesday.

The Pension Reform and State Debt Reduction Fund has to transfer the funds required to the private funds within two days of their application. The private pension funds then have until August 31 to pay out the real yields and contributions to former members.

Hungarian private pension fund members had until end of January to go back to the state scheme along with their pension savings or face losing their state pension. About 97% of private pension fund members opted to do so. These Hungarians will get any yield on their assets over the rate of inflation.