Jobbik vows to introduce new pension calculation system

The opposition Jobbik party has promised to introduce a new system for calculating and raising pensions if it came to power.

Addressing a parliamentary debate on pensions on Tuesday, Jobbik deputy leader Tamás Sneider said spending on pensions in Hungary was too low. He noted that Hungary had spent 11 percent of GDP on pensions in 2009 but only 9 percent by 2014. Meanwhile, the European Union average for public pension spending is 13 percent, he noted.

Another problem with Hungary’s pension system is that low wages result in more and more pensioners receiving very low pensions, he said. This is especially prevalent in sectors like health care and the social sector, he said.

If Jobbik came to power, it would give bigger hikes to low pensions and introduce changes to the pension system on a sector-by-sector basis.

Sneider also criticised the system of so-called “luxury pensions” which he said had been introduced by ruling Fidesz and had resulted in pensions as high as 2 million forints (EUR 6,500).

He said his party would also allow men to retire after 40 years of work.

Under the new pension rules, inflation would be calculated based on a basket of goods and services used by pensioners, Sneider said. He also proposed that state pension rises reflect up to 50 percent of the rise in real wages.

Source: MTI