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Facebook Group And Socialists To Protect Private Pension Funds

Tamás Székely 2014.11.26.

A demonstration was held on Tuesday in front of the Ministry of Economy to protest against a government proposal concerning private pension funds. Zoltán Büki, member of the Facebook group which organised the demo, said that “the government is now eyeing the property of 60,000 people” and insisted that the cabinet has “irrevocably gone down to the level of petty thieves sneaking into homes at night and reaching into drawers.”

Earlier the opposition Socialists Party said they would be organising a class action lawsuit on behalf of private pension fund members in response to a government proposal to wind up private pension funds. Deputy head of parliament’s welfare committee Lajos Korózs, of the Socialists, told the press that the sole purpose of the amendment proposal was to get hold of 200 billion forints (EUR 655m) for the government “because state coffers have dried up”. The proposal makes the operation of funds impossible, robs them of savings and casts out even the seed of self-care from society, he added.

The Ministry of Economy said earlier that the proposal calls for winding up private pension funds where fewer than 70% of members pay their mandatory monthly fees. According to National Bank of Hungary statistics only a few thousand private pension fund members now pay their mandatory monthly fees. Members paid 10,000 forints (EUR 33) a month on average in 2011, but this amount has by now fallen to 500 forints.

via hungarymatters.hu photo: János Marjai – MTI