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Hungary takes aim at [seizing] private pension funds
Yahoo Finance ^ | Wednesday, Nov. 24, 2010.

Posted on 11/28/2010 2:25:13 PM PST by DeaconBenjamin

Hungary is trying to force 3 million people now in private pension schemes back into the state system to help it meet strict budget targets.

Special incentives would be offered to those switching into the state pension plan by Jan. 31, Economy Minister Gyorgy Matolcsy said Wednesday. Those people remaining in private schemes will become ineligible for public pensions -- a move that would effectively cost them 70 percent of their retirement payouts.

At stake is about 2.7 trillion forints (euro9.8 billion, $13.5 billion) accumulated in individual pension accounts and managed by private pension funds.

The government plan, while not nationalizing private pension funds outright as Argentina did in 2008, is expected to make it very difficult for the 18 funds offering pension services in Hungary to keep operating.

Matolcsy said severe cuts will also be made in how much private funds can charge for fees and operating expenses.

Hungarians will automatically be transferred into the state system unless they opt out.

At present, 10 percent of most employees' wages go into a private pension fund, while employers pay another 24 percent into state coffers. Under the government's new plan, those who stay in the private scheme can count only on their own 10 percent payments when they retire.

Matolcsy told reporters the new plan was an "important turning point in terms of economic policy."

Hungary was hard hit by the global financial crisis and is still facing daunting economic challenges. In 2008, it was forced to rely on a bailout of euro20 billion ($27 billion) from the International Monetary Fund and other institutions to avoid bankruptcy.

Government officials this summer have made contradictory statements about the state of the country's finances, increasing uncertainty in the financial markets about Hungary's credibility and hurting the stability of the forint.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; Foreign Affairs; Government; News/Current Events
KEYWORDS:

1 posted on 11/28/2010 2:25:15 PM PST by DeaconBenjamin
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To: DeaconBenjamin

Ssssshhh—don’t give the obamathief any ideas


2 posted on 11/28/2010 2:26:54 PM PST by freeangel ( (free speech is only good until someone else doesn't like what you say))
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To: DeaconBenjamin

Coming soon to America! Socialism can’t survive without the government stealing other people’s money.


3 posted on 11/28/2010 2:28:54 PM PST by FlingWingFlyer (Don't touch my junk!!!)
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To: freeangel

Too late now, Jesse Jackson has had his eye on pension funds for twenty years.


4 posted on 11/28/2010 2:30:03 PM PST by CMailBag
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To: DeaconBenjamin

Private retirement acounts, piggy banks, money the tooth fairy gave your kid... It will never be enough for government.


5 posted on 11/28/2010 2:30:22 PM PST by LibFreeOrDie (Obama promised a gold mine, but will give us the shaft.)
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To: CMailBag

I hate to say this, but when Jackson first said that about pensions I thought he was joking. My bad.


6 posted on 11/28/2010 2:31:19 PM PST by Slyfox
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To: DeaconBenjamin
Look out, it's coming our way, courtesy Obambi and the Rats!

They'll probably com after our 401Ks after that...

Mike

7 posted on 11/28/2010 2:31:57 PM PST by MichaelP (It's the end of the world as they know it, and I'm so glad!)
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To: DeaconBenjamin

Argentina did this recently and US Marxists, oops I meant democrat party “progessives,” have been threatening this for the last few years.


8 posted on 11/28/2010 2:34:37 PM PST by FormerACLUmember (Character is defined by how we treat those who society says have no value.)
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To: DeaconBenjamin

Seizing pension funds in Hungary or America just pushes the day of reckoning a few years down the road. In three to five years at the most, the seized capital is liquidated, the debt is worse and the governments won’t even be close to able to make the promised payouts in real value terms. In fact, they will have all long since defaulted and the currencies become worthless, even if the governments somehow survive. Fascism is the almost inevitable temporary fix.


9 posted on 11/28/2010 2:36:24 PM PST by UnbelievingScumOnTheOtherSide (REPEAL WASHINGTON! -- Islam Delenda Est! -- I Want Constantinople Back. -- Rumble thee forth.)
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To: DeaconBenjamin

“I have seen the future — and it is Hungarian.” — apologies to Lincoln Steffens.


10 posted on 11/28/2010 2:37:07 PM PST by ClearCase_guy
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To: DeaconBenjamin
Never fear.

Most U.S. pension funds are heavily invested in Treasuries, state bonds and "blue chip" stocks like GM and Citibank.

All of that will become as worthless as Social Security by the time the Wee Wee and the Rats have worked their magic.

11 posted on 11/28/2010 2:42:39 PM PST by Zakeet (Like the wise Wee Wee said, "We can't be broke ... we still have checks in the checkbook.")
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To: DeaconBenjamin

Americans are next.


12 posted on 11/28/2010 2:45:21 PM PST by taxtruth
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To: FormerACLUmember

Some on the left were writing about this 20 years ago.
To them it just was not FAIR that some people had their own private pension accounts.


13 posted on 11/28/2010 2:46:08 PM PST by Maine Mariner
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To: DeaconBenjamin
There appears to be a worldwide transfer of wealth from individuals to governments.

It's global.

14 posted on 11/28/2010 2:49:27 PM PST by Lazamataz
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To: freeangel

Don’t fool yourself into thinking that they haven’t already been coveting your IRAs and 401k’s for a long time.


15 posted on 11/28/2010 2:50:35 PM PST by Blood of Tyrants (Islam is the religion of Satan and Mohammed was his minion.)
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To: DeaconBenjamin

We already paid.


16 posted on 11/28/2010 2:50:39 PM PST by wac3rd (Somewhere in Hell, Ted Kennedy snickers....)
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To: DeaconBenjamin
The government plan, while not nationalizing private pension funds outright as Argentina did in 2008, is expected to make it very difficult for the 18 funds offering pension services in Hungary to keep operating. Matolcsy said severe cuts will also be made in how much private funds can charge for fees and operating expenses.

Sounds like they were inspired by Obamacare...forcing everyone onto the public plan by forcing providers out of business and punishing those who resist.

I often wish that there is a very special back alley of Hell for the people who devise and implement these evil schemes.
17 posted on 11/28/2010 2:57:16 PM PST by LostInBayport (When there are more people riding in the cart than there are pulling it, the cart stops moving...)
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To: DeaconBenjamin

I know this is being floated in Washington. They’ll do to our IRAs and 401Ks what they did to Social Security.


18 posted on 11/28/2010 3:00:35 PM PST by YankeeReb
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To: DeaconBenjamin

Note to all: Hungary is politically dominated by a political supermajority of the national *conservative* people’s party. The socialists have far less seats in their parliament.

So this looks to me as a situation of “conservatives” trying to preserve a socialist system that has failed, by looting private systems that are succeeding.

Sound familiar?


19 posted on 11/28/2010 3:16:46 PM PST by yefragetuwrabrumuy
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To: YankeeReb
"this is being floated in Washington"

First to go will be the tax exemptions of interest and dividends in retirement accounts.

As The Kenyan posted on his campaign website, long deleted: "Tax exemptions on retirement accounts are government subsidies. Why should the government subsidize anyone rich enough to have a retirement account?"

Next up will be the ultimate Social Security means test: If you have a private pension or retirement account, you don't qualify for SS.

yitbos

20 posted on 11/28/2010 3:21:01 PM PST by bruinbirdman ("Those who control language control minds." -- Ayn Rand)
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To: Slyfox

“I hate to say this, but when Jackson first said that about pensions I thought he was joking.”

Jackson: “Why can’t we have some of that money?”

He was dead serious when he made that statement. Was it a dem convention speech? Anyway, he hasn’t said it since then that I know of. I believe the shake-down king knew something back then and was paid very well to shut up.


21 posted on 11/28/2010 3:21:39 PM PST by Heart of Georgia
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To: FlingWingFlyer
Socialism can’t survive

Neither can Communism.

Communities based on the nuclear family however can; as time has shown.

22 posted on 11/28/2010 3:29:59 PM PST by Michael Barnes (Guilty of being White.)
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To: DeaconBenjamin
Those people remaining in private schemes will become ineligible for public pensions -- a move that would effectively cost them 70 percent of their retirement payouts.

Even if it does cost them 70 percent they will probably come out ahead if they keep their private funds private.

That 70 percent will be inflated away to nothing by the time they collect it.

23 posted on 11/28/2010 3:36:55 PM PST by seowulf ("If you write a whole line of zeroes, it's still---nothing"...Kira Alexandrovna Argounova)
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To: freeangel

Wasn’t Tom Harkin talking about trying to get something like this through during the lame duck session this year? I haven’t heard any talk of it since the election (which doesn’t necessarily mean they have given up on the idea).


24 posted on 11/28/2010 4:18:43 PM PST by Verginius Rufus
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To: bruinbirdman
Next up will be the ultimate Social Security means test: If you have a private pension or retirement account, you don't qualify for SS.

Yeah, but you're still forced to pay into that ponzi scheme. Ah well all those new citizens need retirement too I suppose.

25 posted on 11/28/2010 4:53:54 PM PST by YankeeReb
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To: UnbelievingScumOnTheOtherSide
Seizing pension funds in ... America just pushes the day of reckoning a few years down the road.

Actually, it moves it up to the next day.

26 posted on 11/28/2010 5:17:46 PM PST by Dr.Deth
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