BUDAPEST - Hungary's top court will start to look at appeals against the effective re-nationalization of the mandatory private pension fund pillar at its two-day meeting to be held on Monday and Tuesday, the Constitutional Court said.
The daily Nepszabadsag said on Friday that the court received almost 200 appeals against the pensions bill, which strips those who stayed in the private funds of their right to state pensions while they will continue to pay contributions to the state. The plan has drawn public criticism from the existing privately-run funds.
Constitution Court officials were not immediately available for comment but the agenda of the meeting on the court's www.mkab.hu website includes "the discussion of interpreting the (court's) jurisdiction to consider the constitutionality of law amendments regarding private pension funds."
The pension change is a key plank of the government's economic policy, which helps reduce the budget deficit below the European Union's ceiling of 3 per cent of gross domestic product (GDP) this year and cut state debt.
The state is expected to receive assets worth up to $13-14 billion (S$16.7-17.9 billion) from mandatory private funds as most of the 3 million members of the funds have returned into the state-run pension system based on the bill passed late last year.
The Court will have to decide first whether it has a legal basis to discuss the appeals.
The centre-right government, which won two-thirds majority in parliament last year, has limited the court's jurisdiction.
The court can rule only on public sector budget-related appeals whose arguments do not reach beyond certain basic human rights including the right to human dignity.
Nepszabadsag said it was likely to take several sessions for the court to select the appeals on which it can rule.