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Pension Reform in Hungary: Do We Need One (Pillar) More? |
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The HungarianAmerica Foundation
and its HunEx-Econ Group
Cordially Invite You to a
Symposium on the
PENSION REFORM IN HUNGARY: DO WE NEED ONE (PILLAR) MORE?
6:30 pm, Friday, September 30, 2005
HRFA Kossuth House, Washington, D.C.
[Press Release | Pictures]
| We invite you to an event where a series of experts will discuss various issues on pension reform in Hungary. Following a brief discussion on the macroeconomic challenges that determine the environment of any substantial government reform, István Székely, the Deputy IMF Mission Leader to Poland, will address the experiences of Poland, a country in similar stage of its transition, with its recent Notional or Nonfinancial Defined Contribution (NDC) and multipillar pension reform. Csaba Fehér was an active participant of the implementation of the 1997 reform and later he was the executive director of Guarantee Fund of Pension Funds in Hungary. He will provide his feedback on the aftermath of the reform as a Senior (Pension) Economist with the ECA region of the World Bank. András Bodor, Ph.D. student in Economics at Georgetown University and World Bank consultant, will link the labor market situation and the desirable pension reform design in the Hungarian context. The debate will be facilitated by Sándor Sipos, Sector Manager of the Social Protection field at the World Bank, whose experience extends to a great number of pension reforms implemented internationally. Your contribution to the debate is most welcome as well. |
Panelists:
 István Székely
Deputy Division Chief
European I Department, Central European II Division
International Monetary Fund
 Csaba Fehér
Senior Economist
Social Protection Unit, ECSHD
World Bank
 András Bodor
Ph.D. Student
Georgetown University
Consultant, World Bank
 Sándor Sipos (Moderator)
Sector Manager
Social Protection Unit, HDNSP
World Bank
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This event is open to the public. RSVP is kindly requested.
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Background material:
In 1997, the Hungarian Parliament passed legislation that reformed the Hungarian pension system in accordance with the then mainstream progressive international pattern, a multipillar system with a pay-as-you-go state pension and privately funded pension components. Why do we talk about the need for pension reform then in 2005?
One may argue that the 1997 pension reform was never finished (e.g. regulation of the 2nd pillar is still incomplete) and consequent changes worked against the sustainability of the system (e.g. decreases in contribution rates - being implemented as a means to making the Hungarian economy more competitive through decreased cost of employment - put financing of the 1st pillar on a unsustainable path.)
In addition, there are new developments in the filed of effective pension system design including the Notional or Nonfinancial Defined Contribution technique that creates individual accounts in a pay-as-you-go environment as an accounting tool. It is worth to mention that the 1997 pension reform abolished the institution of the minimum pension starting in 2009 and it is still unclear what technique will ensure old-age income security for those who were unable to collect sufficient pension rights. In the meantime, the most newsworthy topic around pensions in Hungary is the issue of the so called 4th (factually addition to the 3rd) pillar through individual pension savings accounts.
Government documents on the subject (in Hungarian):
Nyugdíjstratégiai Jelentés 2005 (ICSSZEM)
Országos Nyugdíjbiztosítási Főigazgatóság
Related newspaper articles (in Hungarian):
Miért nincs értelme a negyedik nyugdíjpillérnek?
(Világgazdaság, 9/30/2005)
Nyugdíjkorrekciós program indul, no az özvegyi járandóság
(Népszava, 9/29/2005)
Fókuszban egy igazságosabb nyugdíjrendszer
(hirado.hu/MTI, 9/29/2005)
Bokros: „Még nem fejezodött be a nyugdíjreform”- jöhet az ötödik pillér !
(Penzcentrum.hu, 9/28/2005)
Bokros: Szükség lesz a "nulladik nyugdíjpillér" bevezetésére
(Ma.hu, 9/28/2005)
Mit várnak a negyedik nyugdíjpillér bevezetésétol?
(Világgazdaság, 9/23/2005)
Miért nincs értelme a negyedik nyugdíjpillérnek?
(Világgazdaság, 9/20/2005)
Nyugdíjvadászat a tozsdén?
(Heti Válasz, 7/28/05)
Nyugtalanító nyugdíjkasszák
(Heti Válasz, 6/28/2002)
Jövore jön a nyugdíj-elotakarékossági számla
(HVG, 9/19/05)
Változások várhatók a hazai nyugdíjrendszerben?
(HVG, 7/20/05)
"Nyugdíjkárpótlás" tízmilliárdokért
(Népszabadság, 6/13/05)
Célkeresztben a régi, rossz nyugdíjak
(Népszabadság, 5/27/05)
Nyugdíjunk és megtakarításaink
(Népszabadság, 5/26/05)
A hiány csak 2007-ig csökkentheto a magán-nyugdíjpénztárakkal
(Magyar Nemzet, 12/3/04)
(The HungarianAmerica Foundation wishes to thank the HRFA for the use of the Kossuth House as a venue for this event. HRFA is a fraternal and financial services organization, chartered by Congress in 1896.)
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