Hungary Top Court May Rule on Pension Fund Nationalization Case

Hungary’s Constitutional Court will consider a case next week brought by mandatory private-pension fund members against the government after the effective nationalization of retirement savings.

Justices will consider the case at its Dec. 28 session, the Budapest-based court said in an agenda published on its website today.

Prime Minister Viktor Orban last year forced more than 3 million private-pension fund members to turn over retirement savings to the government or lose the right to a state pension. The government effectively nationalized $13 billion in private- pension fund assets this way and used it to plug budget holes.

About 100,000 members remained with the funds. The government will continue to claim all of their pension-related contributions indefinitely, Orban said last week.

To contact the reporter on this story: Zoltan Simon in Budapest at zsimon@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.