Erste Group to Close Hungarian Mandatory Pension Fund Arm

22 February 2012 (PLANSPONSOREurope.com) - Erste Group Bank, the second-largest bank in Hungary, is to propose to shareholders the winding up of its private pension fund business, according to reports.

Hungarian news agency MTI reports the proposal will be put to shareholders at a general meeting on July 1.

Most private pension fund members of the former mandatory line decided to return to the state pension pillar along with their retirement savings, last year. Under legislation effective from the start of the year, the private pension funds were made ineligible for pension contributions, as all payroll taxes must go into the state fund.

PLANSPONSOREurope Staff
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