Parties blame each other over private pension funds

The opposition Socialists have filed a complaint to the public prosecutor against Prime Minister Viktor Orban and others for his government’s act of nationalising private pension funds which affected the savings of 3 million people totalling 3,000 billion forints (EUR 9.7bn), Socialist lawmaker and head of parliament’s welfare committee Lajos Korozs said on Wednesday.

The report accuses Orban and Gabriella Selmeczi, a former government commissioner in charge of pensions, as well as former economy minister and current central bank governor Gyorgy Matolcsy of abuse of office, of breaching their obligation to perform public duties, as well as fraud and mismanagement, Korozs told a press conference.

Korozs noted that parliament had at the time of the pension transfers in 2010 approved a political statement — with ruling Fidesz’s majority support — on the need to protect the money drawn from private pension savings. The statement set out to guarantee that past pension payments would be credited to individual private accounts, that their value would be preserved and that exemption from tax would be provided to those who transfer their money to the state pension system.

The Socialist said three million young people had been issued with what amounted to a threat when told by the government that anyone who fails to transfer their savings to the state pension system would be ineligible for a state pension. Accordingly, 2.9 million people transferred their savings and the state acquired some 3,000 billion forints, Korozs said.

Since then the ruling parties have wastefully spent the monies instead of implementing the guarantees to preserve them, he added.

Fidesz reacted by saying that the Socialists “should file a complaint against themselves for endangering the pensions of hundreds of thousands of people”. “Barely a few people receive pensions from private pension funds, while 2.8 million people receive it from the state,” Fidesz said in a statement. “The existence of private pension funds is in the interests of banks and financial speculators. The Hungarian Socialist Party has always represented the interests of banks and speculators,” Fidesz insisted.

Source: MTI
Photo: Youtube

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