Are you sure?

Association asks Constitutional Court to annul law on suspending pension fund payments

The Stabilitás Fund Association on Wednesday said it asked Hungary's Constitutional Court to annul with retroactive effect an amendment that suspends payments to mandatory private pension funds from November until the end of 2011.

Suspending the payments is an infringement of the right of ownership, Stabilitás said.

Parliament approved the amendment suspending the payments a week earlier in the interest of plugging Hungary's budget gap. Around the same time, it approved an amendment giving mandatory private pension fund members the option to switch to the state pension system, bringing their assets with them.

Stabilitás advised private pension fund members against making the switch as long as the government does not reveal the details of the transfer in such a way that allows members to make an informed decision on which system is better for them. (MTI Econews)