December 8th, 2009

Fees likely to increase at Hungary’s voluntary pension funds

Voluntary pension funds may not be able to avoid increasing deductions from members’ payments, leaving less for pensions, the business daily Napi Gazdasag said on Monday.

Currently, most funds take 10pc or less of their members’ payments for operating and liquidity funds, the paper said. However, PSZAF figures show the voluntary pension funds’ revenues earmarked for operation do not cover their expenditures. The losses came close to HUF 1bn (EUR 3.73m) in the first three-quarters of this year.

In the case of voluntary health insurance funds, operating expenses exceeded revenues earmarked for such purposes by HUF 1.8bn in the same period.

Voluntary pension funds saw a continued fall in the number of their members in the third quarter of this year, the paper said, quoting figures published by the financial market regulator PSZAF. The number of voluntary pension fund members totalled 1.338m at the end of September 2009, almost 70,000 less than twelve months earlier. The reduction followed increasing unemployment, the paper said.

The funds managed assets worth HUF 783bn at the end of September, HUF 51,2bn more than twelve months earlier.

Assets of voluntary health funds stood at HUF 50.9bn at the end of September, up by HUF 6.6bn from a year earlier.

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