HUNGARY - Hungarian pension-fund companies will protest against the government's plan to suspend contributions to workers' retirement accounts for a year, an industry association said.
The government will withhold social-security payment transfers to private pension funds, saving 30bn forint ($154m) a month from November 1 through the end of 2011, Prime Minister Viktor Orban said. The move is among government plans, including special taxes, to meet budget- deficit targets this year and next.
“These measures mean a cloaked nationalization, reminiscent of the 1950s,” Stabilitas Penztarszovetseg said.
“The government wants to solve the problems stemming from the economic crisis at the expense of the savings of private pension-fund members, subjecting them to short-term political interests.”
Orban, who won elections in April on promises to boost economic growth after the worst recession in 18 years and bring an end to years of austerity, is under pressure from the European Union to cut the budget deficit.
He promised last month to reduce the shortfall to 3.8%of economic output this year and less than 3% in 2011, after falling out with the country’s international creditors in July over the same targets.
Stabilitas Penztarszovetseg will protest against the decision in “all possible venues,” it said in the statement. The association represents more than 3 million private pension fund members with combined assets of 2.7trn forint, it said.
PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The Department for Work and Pensions (DWP) has released its first batch of guidance setting out how the guaranteed minimum pension (GMP) conversion legislation may be used to resolve unequal payments.
This week's top stories include the government spending £800,000 on a Gogglebox advert and MPs writing to The Pensions Regulator about its engagement with the Railways Pension Scheme.