”honvÉd” (military) pension fund

”HONVÉD” (Military) Pension Fund web: www.hnyp.hu PROFESSIONAL FUND e-mail: [email protected]

”HONVÉD” (Military) Pension Fund


Criteria’s of EU pension system – I.1.) Separation of the social discrimination

(guarantee of the minimum pension level , risk of elderly poorness)2.) To keep life standard on the previous level

(00-70%, tax)3.) To help solidarity

(solidarity between generations, solidarity between elderly people)4.) To increase the level of employment

(the rate of economical suport)5.) Increase the years sent at work

(no support for earlier retirement)6.) To keep the pension system and balance of the budget at the same time

(GDP 10,4 %)7.) Propotional changes of supply and allowance

(so that it does not bother the active people, but to assure a good level of pension 8.) To assuer a good level of private pension and financial stability

(2. Increase the importance of the second COLLUMN 40 % /UK; NL/ )9.) To adjust to a more flexible employment and career model

(flexible labermarket and free movement between the member states)


10.) To make equality between men and women

(differences of pension levels, unisex rules)

11.) The pension system should fit for all challenges

(a turstful question transparency and stability)

Criteria’s of EU pension system – II.


Model of typical EU member state

1. COLLUMN:

Compulsory state pension system

2. COLLUMN :

Compulsory or voluntary, the employee’s or your own pensional or financial system

3. COLLUMN :

Voluntary, supplementary, the employee’s or your own pensional or financial system


Adventages of the fund membership

• Voluntary:• Employee fee - support

• Reduse of tax (eg. own payment)

• Variaty of the taxfree timelimited service

• The inheritable things

• Possibility of getting a loan

• The chance of getting creadit

• Mandatory:• No additional expense, sent by the

employee

• The chance of supplementary benefit

• Paying can be followed

• The variations of timelimited services

• The inheritable things


Main facts of establishment

• 24th of october 1994: 39 founder member established the ”HONVÉD” (Military) Pension Fund, Voluntary Section•12th of december 1997: The ”HONVÉD” Voluntary and Mandatory Section was established•7th of may 1998: The Mandatory Pension Fund got the licence


When ”HONVÉD” (Military) Pension Fund was established, it was only for Hugarian Defence Forces personal.


Fund sort history

HDF1994.


The organization of the Pension Fund

•Sent general assembly From July 2008 Voluntary section: 40 areas, 40 delegates, deputy delegateFrom all kinds of employees. Mandatory section:38 areas, 38 delegates, deputy delegateFrom all kinds of employees.

•Local voter essembly•The director’s council(11 people) •Board of inquiry (7 people)•Management and coordination office (28 people)


Number of delegates and area

Area

Voluntary Mandatory Sum.

Del.sum:area num.

Delegates, dep. Del.

area num.Delegates, dep. Del.

area num.Delagates,dep

Del.

Capital 6 18 6 18 12 36 36

East 17 51 15 45 32 96 96

West 12 36 12 36 24 72 72

Intelligence services

5 15 5 11 15 30 30

Sum total: 40 120 38 114 78 234 234


Delegates/employee PO-Police, LE-Law Enforcement, CM Crisis Management, INT Inteligence service, CS Customs Service

Military PO LE CM INT CS Own Sum

Person 111 31 40 9 14 2 11 228

% 49 14 17 4 10 1 5 100

49

14

17

4

101 5

Mil. PO. LE. CM. INT. CS. Own


Tasks of delegates

• To keep a permanent contact with areas leaders and Fund leaders

• To help Fund marketing activity in the area

• To take part in a general assembly activity and give an information for a Fund members


Trend of members (person) (2000-2008)

0

23000

46000

69000

mandatory 14343 14985 15155 16537 17936 18920 20656 22509 23909

v oluntary 36945 37381 37230 39050 40266 40487 41409 42371 43228

sum. 51288 52366 52385 55587 58202 59407 62065 64880 67137

2000 2001 2002 2003 2004. 2005. 2006. 2007 2008


Graduated voluntary members fee(from 01./01./2009.)

Grade Functions Funds

0-150.000 Ft 95,5 % 4,5 %

150.001-250.000 Ft 96,5 % 3,5 %

250.000-350.000 Ft 97,5 % 2,5 %

350.001 Ft - 98,5 % 1,5 %


FUND PROPERTY, INVESTMENT

Hungarian Finacial

Supervisory Authority

FUND

Dicertor’s Council

Management

Deposit Bank

RAIFFEISEN

Trustee (3)

CONCORDE

MKB

Generali

money information


Optional portfolio system (2008.01.01.)Classical portfolio

Hungarian State bond Hungarian property Hungarian stocks

Central-European stocks North-American stocks European stocks


Balanced portfolio

Hungarian State bond Hungarian property Hungarian stocks



Growth portfolio

Hugarian State bond Hungarian property Hungarian stocks



Trend of Fund Property (1995-2007)(thousands Ft)

0

22000

44000

66000

mandatory 0 0 0 7320 13502 14343 14985 15155 16537 17936 18920 20656 22509

voluntary 7621 17000 22370 29858 35827 36945 37381 37230 39050 40266 40487 41409 42371

sum. 7621 17000 22370 37178 49329 51288 52366 52385 55587 58202 59407 62065 64880

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004. 2005. 2006. 2007.


Average output of Funds voluntary section (2003 -2007)

0

2

4

6

8

10

5 y ears av erage output 8,79 8,85 8,31 8,98 9,81 6,93 8,6 8,93 5,67

AEGON ALLIANZWinterthur-

AXAING OTP UNIQA Rendőri HONVÉD Inf láció


Average output of Funds mandatory section (2003 -2007)

0

2,1

4,2

6,3

8,4

10,5

5 years average output 8,7 8,56 9,04 9,5 9,89 7,09 9,58 5,67

AEGON ALLIANZWinterthur-

AXAING OTP UNIQA HONVÉD Infláció


Fund Functional Facts (bil. Ft)

1,20

0,10

3,60

0,55

3,00

0,50

4,30

1,60

3,50

1,00

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

4,00

4,50

2004 2005 2006 2007 2008. I.

Vol. Mand.

Vol. Full payment (pention) 1,1 bil. 3,1 bil. (2007)

Mand. Went backt to the state sys. 36 bil. Ft 1,4 bil. Ft (2007)

Members loan 312 pers. 55,5 mil. Ft (2004) 837 pers. 219 mil. Ft (2007)

Members deposit 48 pers 25,8 mil. Ft (2006) 77 pers. 45 mil. Ft (2007)


Main tasks of the Fund’s future2009

– To start the UNIT system and stabilize the proper function

– New agreement and cooperation with Foreign trustee

– Make a better investment result– 15 years anniversary

2009 – 2014– Prepare a 5 year long business strategy– Increase the Fund investment results – Preparation for functional mandatory pention system

(from 2013)– Plan for a Public Company conversation

”honvÉd” (military) pension fund

Documents

mandatory pension fund

good level of pension

minimum pension level

good level of private

honvd voluntary

fund membershipvoluntary

fund sort historyhdf

kinds of employees