Hungary Wins Lawsuit Regarding Private Pension Funds
- 6 Feb 2013 8:00 AM
Based on the facts of the case, Hungarian-Serbian dual citizen E.B. was required to join a private pension fund at her first employer in 2008 in accordance with the legislation in force at the time. When the amendments made to the pension legislation terminated the two-pillar mandatory pension system in 2010 and allowed citizens the choice between the private and the state pension schemes, the applicant decided to opt for membership of the private pension scheme.
As, due to statutory changes, pension contributions payable by private pension fund members were required to be transferred to the state scheme, rather than to the individual private pension funds, the applicant filed a petition with the European Court of Human Rights because, in her opinion, her property rights were infringed.
After a review of the Hungarian legislative amendments related to the reform of private pension funds, the Strasbourg court established that the applicant’s contributions made either to a private pension fund or to a state fund equally made her eligible for future pension payments and there had therefore been no interference with any of her rights.
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