Hungarian Pension System: The Permanet Reform
On January 1, 1998 a three-pillar pension system was introduced in Hungary. It is replacing about 1/4 of the existing unfunded public system by a funded private system. The transition to this mixed system was obligatory for those entering the labor market after June 30, 1998 and optional for the current labor force. Meanwhile the public pillar is also being reformed. The current (1998-2002) government has made important changes to the on-going reform program started by its predecessor: The benefits under the mixed system will be less attractive than envisaged, the participation in the mixed system is not mandatory for the entrants to the labor force since the beginning of 2002 and the public pillar is to be based on the virtual individual accounts (NDC). There is a danger that the permanent changes will further weaken the trust in the mandatory (public and private) pension system.
|Date of creation:||Mar 2002|
|Date of revision:|
|Note:||February 25, 2002|
|Contact details of provider:|| Postal: |
Web page: http://cis.ier.hit-u.ac.jp/
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