Hungary takes aim at private pension funds

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Hungary aims to force 3 million people in private pension plans back into state scheme

November 24, 2010

BUDAPEST, Hungary (AP) -- Hungary is trying to force 3 million people now in private pension schemes back into the state system to help it meet strict budget targets.

Special incentives would be offered to those switching into the state pension plan by Jan. 31, Economy Minister Gyorgy Matolcsy said Wednesday. Those people remaining in private schemes will become ineligible for public pensions -- a move that would effectively cost them 70 percent of their retirement payouts.

At stake is about 2.7 trillion forints (euro9.8 billion, $13.5 billion) accumulated in individual pension accounts and managed by private pension funds.

The government plan, while not nationalizing private pension funds outright as Argentina did in 2008, is expected to make it very difficult for the 18 funds offering pension services in Hungary to keep operating.

See:
http://finance.yahoo.com/news/Hungary-takes-aim-at-private-apf-2818813752.html?x=0&.v=2f


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