February 21st, 2012

Erste to wind up private pension business in Hungary

Erste Bank’s pension fund will propose to shareholders winding up its private pension fund business, Erste Pension Fund told MTI on Monday.

The proposal will be put to shareholders at a general meeting on July 1.

Erste Pension Fund managing director Lajos Mohr said amendments approved by Parliament at the end of last year had created a difficult position for market players.

Most private pension fund members of the former mandatory line decided to return to the state pension pillar, together with their retirement savings, last year. Under legislation in force from the start of 2012, the private pension funds were made ineligible for pension contributions, as all payroll taxes must go into the state fund.

At the same time Erste’s voluntary pension fund is more and more popular and it intends to expand its activities, Mr Mohr said.

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