Fogyasztóvédők Magyarországi Egyesülete

Private pension funds

The pension fund system, is a pension system connected to the compulsory social insurance system, based on contribution payment obligation, which - linked to the social security system – ensure the safety of an old age and disabled citizens.

The private pension of citizens based on membership dues and private account, and the pension fund system are regulated by the Act 1997. LXXXII.

The pension fund established related to the referred act, based on the principle of self-government, is an institution belonging to the members ownership, which collects a certain part of the mandatory pension contribution, the additional payments as dues, invests these dues, and ascribes the yield of the dues on the member's account. The fund offers a life annuity service to the customer, who has passed the retirement age, according to the amount of credit aviable on the customer's own safety reserve.

Funds have different number of members and different amount of assets. Most of the funds let trustees to manage their investments.
It is called an open fund if the scope of members are not limited and it is a closed fund it limits the scope of potential members according to professional or other organising principle.