Private pension holders' complaints to top court

Holders of mandatory private pensions who face losses unless they switch to the state system by the end of January have made over 200 complaints to the Constitutional Court, the daily Népszabadság said on Wednesday.

It is certain that the court will not be able to prepare a draft decision on the matter by the end-Jan deadline, the paper said. Several court sessions are likely and a decision will probably emerge in March or April, it added.

The court's judges will have to thoroughly examine within which constitutional framework it should handle the issue, since the court has been stripped of its powers to review matters which have a bearing on the state budget.

Nearly 31,000 people, or about one percent of all pension fund members, have chosen to stay in the private pension fund system just one week before the deadline, the paper said earlier.

Hungarians must make their statements by the end of January if they wish to stay in the private pension scheme. Those who choose to stay will not receive any benefit in exchange for the mandatory pension contribution paid by their employees. If no statement is made, the transfer to the state pension fund system will be made automatically.