szebelédi ferenc: some challenges of the hungarian pension system in the eu
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Szebelédi Ferenc: Some challenges of the Hungarian pension system in the EU . Sofia, 16-17 February, 2005. 1. Structure of the Hungarian pension system. 2. Pillar I. issues. Traditional PAYG social security system 1408/71 Reg Calculation rules (pro rata and theoretical benefits) - PowerPoint PPT PresentationTRANSCRIPT
Szebelédi Ferenc:Some challenges of the Some challenges of the
Hungarian pension system in Hungarian pension system in the EU the EU
Sofia, 16-17 February, 2005
16-17 February, 2005
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1. Structure of the Hungarian pension 1. Structure of the Hungarian pension systemsystem
Usually in the EU Hungary Major relevant EU legislation
Pillar I.: Social security system (PAYG)
Pillar I: Social security system (PAYG)
1408/71 Reg.(=883/2003. Reg) „Coordination Regulation”
Pillar II: Mandatory pension funds „magánnyugdíjpénztár”
1408/71 Reg.(=883/2003. Reg)
Pillar II. Occupational pension schemes
- 1998/49 Dir2003/41 „IORP” Dir
Pillar III. Individual pension schemes
Pillar III: Voluntary Individual pension schemes„önkéntes nyugdíjpénztár”
1998/49 Dir
16-17 February, 2005
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2. Pillar I. issues2. Pillar I. issues
Traditional PAYG social security system 1408/71 Reg • Calculation rules (pro rata and
theoretical benefits) • Coordination and clearing rules
→Little experience, seems not to have serious problems
16-17 February, 2005
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3. Pillar II: Mandatory pension funds3. Pillar II: Mandatory pension funds
Under the scope of Reg. 1408/71 (which has PAYG logic)
Main challenges: 1) Theoretical benefits→ funded systems are not able to manage
theoretical benefits
2) Coordination among state competent institutions, clearing systems
→ pension funds are private insitutions: coordination mechanism and clearing system are not
applicable
16-17 February, 2005
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4. Pillar III.: voluntary schemes4. Pillar III.: voluntary schemes
Voluntary individual pension funds„Önkéntes nyugdíjpénztár”
Under of scope 1998/49 Dir
→Seems not to have major problems
16-17 February, 2005
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5. Occupational schemes:5. Occupational schemes:Challenges regarding the 2003/41 Dir. Challenges regarding the 2003/41 Dir.
– 1.– 1.41/2003. Dir is applied for occupational pension
schemes
- Home state: - rules for the activies of IORPs - supervision
- Host state: - make it possible to pay contribution to an
IORP - giving information about social and labour
law - limited supervision
16-17 February, 2005
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6. Occupational schemes:6. Occupational schemes:Challenges regarding the 2003/41 Dir Challenges regarding the 2003/41 Dir
- 2- 2..
Hungary as Home state:
→ It seems, that Hungary has no occupational schemes, so there is no need to deal with regulation for IORPs
16-17 February, 2005
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7. Occupational schemes:7. Occupational schemes:Challenges regarding the 2003/41 Dir Challenges regarding the 2003/41 Dir
- 3.- 3.
Hungary as host state:• Have to make it possible for Hungarian undertakings
to sponsor IORP– possible tax problems
• Have to determine Hungarian social and labour law relevant to occupational pension
– Hungary has no specific regulations• Investment rules, other options
– seems not to have any problem• Have to determine procedure for the notification
process – task of CEIOPS WGOP
16-17 February, 2005
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ConclusionsConclusions• Pillar I. Little experience, no serious problems• Pillar II. No experience at all, major
challenges: - theoretical benefits - coordination and clearing system among competent institutions
• Pillar III: Seems not to have major problems• Occupational pensions: difficulties because of
the lack of occupational pillar
16-17 February, 2005
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Conclusions – 2.Conclusions – 2.
→Mentioned challenges are not only the problems of Hungary
→EU regulations and directives do not cover all existing pensions schemes
16-17 February, 2005
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Thank for your attention !