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No court decision yet on private pension fund transfer

Hungary's Constitutional Court did not take a decision on the transfer of private pension funds to the state at a debate on Tuesday, the court's press chief András Sereg said.

The court started the debate on the matter on Monday, Sereg said. The issue is not on the agenda for any of the other days this week, he added.

From September 1, the court will get five more judges, elected by Parliament in June.

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 and their assets were transferred to the state in June. Those who returned were paid any yield on their assets over the rate of inflation.

Julianna Bába, who heads pension fund association Stabilitás, said earlier that it would be difficult to re-establish private pension fund membership after the real yields were paid out. It would have been most fortunate if the court could have taken a decision before the pension assets were transferred, she added.

The real yields are being paid out at present.