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Over 100,000 members remain second pillar

Just over 3.2% of Hungary's more than 3 million mandatory private pension fund members indicated their intention to remain in the private pension pillar by Monday, the deadline for making such a declaration, the government's pension protection commissioner Gabriella Selmeczi said at a press conference on Tuesday.

Just over 3.2% of Hungary's more than 3 million mandatory private pension fund members indicated their intention to remain in the private pension pillar by Monday, the deadline for making such a declaration, the government's pension protection commissioner Gabriella Selmeczi said at a press conference on Tuesday.

By midnight on Monday, 102,019 private pension fund members declared they would not move back to the state pillar, and 439 said they would make such declarations by the end of February, bringing the total number to 102,458 or about 3.2% of all private pension fund members, Selmeczi said. The fact 96.8% of members decided to move back to the state pension pillar within the framework of the pension protection programme is a great success, she added. Every forint will be accounted for during the transfer of assets of former private pension fund members, she said.

Pension offices in the capital stayed open late on Monday, accepting the last declarations to opt out shortly before midnight, said ONYF press secretary Zsuzsa Szoke Lovas. Data from financial market regulator PSZAF show there were 3,090,517 private pension fund members on September 30, 2010.

Private pension fund members who decided to return to the state pillar could get their real yields in April at the earliest, Selmeczi said. Private pension funds will get data on members who will move to the state pension pillar from March 1 and the funds will have 45 days to work out a plan for the transfer of their assets, she explained. The plans will be submitted to financial market regulator PSZAF and the watchdog will report back on their approval within three days. The transfer of assets will follow as well as determining whether or not members' assets have a real yield, and if so, how much, Selmeczi said.

Assets from the private pension funds transferred to the state pillar are expected to come to HUF 3,000 billion. (Econews)