In what ways is QUAESTOR Foglalkoztatói Nyugdíjszolgáltató Zrt. different from a voluntary mutual pension fund?
The voluntary mutual pension funds are non-profit institutions based on individual decision to join, organized on the principle of self-government operation. They take place in the third pillar of the Hungarian pension system and their operation is controlled by Act XCVI. 1993.
In case of QUAESTOR Foglalkoztatói Nyugdíjszolgáltató Zrt. (IORP), as a privately limited business company, the employers can join the fund and they can establish pension schemes for their employees as members.
QUAESTOR Foglalkoztatói Nyugdíjszolgáltató Zrt. is classified as an occupational retirement provider according to EU directive (IORP) and it is regulated by Act CXVII. 2007.
Another important difference besides the above is that within the framework of QUAESTOR Foglalkoztatói Nyugdíjszolgáltató Zrt., the employer can create retirement program according to their own concepts – complying with the principles in the ROO – and can make pension schemes for arbitrary groups of employees. This kind of differentiation is not possible in case of voluntary mutual pension funds.
Furthermore, in pension schemes provided by the IORP, the employer can define the vesting period, that is a period of time in which an employee must work for an employer in order to be fully entitled to employer contributions.
Do all employees have to participate in the occupational retirement provision program?
The employer sets forth which employees to involve in the retirement program in the Accession Agreement made with the IORP and in what way these employees are classified into different groups with different parameters and unique pension schemes.
Is it possible to establish a pension scheme for only one person?
Yes, with QUAESTOR Foglalkoztatói Nyugdíjszolgáltató Zrt. you have the chance to establish a pension scheme for even one person.
How can I create specific pension schemes?
The unique nature of the pension scheme lies in the fact on one hand, that the employer can determine the way (monthly, or quarterly) and the amount of payable contributions to the member employees participating in the pension scheme.
By using the options provided in the OOR of QUAESTOR Foglalkoztatói Nyugdíjszolgáltató Zrt., the employer can arbitrarily specify the vesting period (0,1,2,3,4,5 years), the waiting period (5,6,7,8,9,10 years), the procedure in respect of paid contributions followed in case of deaths occurring during the vesting period, they can ensure the possibility to invest in optional investment portfolios, determine the form of retirement benefits and can also make additional member payments compulsory as a condition of employer contributions (matching contribution system).
What is a vesting period?
In case of an occupational retirement program, the employer has the chance to determine the period of time in which an employee must work for the employer in order to be fully entitled to employer contributions. In the pension schemes of QUAESTOR Foglalkoztatói Nyugdíjszolgáltató Zrt. the vesting period can be 0,1,2,3,4,5 years (5 years is the statutory maximum).
What happens to already paid employer contributions if either the employer, or the employee terminates the employee's employment during the vesting period?
In this case, the employee is not entitled to receive the employer contributions. The employer contributions paid on member accounts and their yields are distributed among the members in the same pension scheme, in proportion to balances of members' accounts.
What happens to already paid employee contributions if either the employer, or the employee terminates the employee's employment during the vesting period?
In case the employer has made additional employee payments the condition of employer contributions, these already paid employee contributions and their yields are repaid upon the member’s request in one lump sum.
Can the member have access to the yields and savings accumulated on his member account after the waiting period?
Payments of occupational retirement benefits are only possible when the retirement age is reached, or if there is at least 50% reduction in the working capacity (long-term disability). Otherwise payments can only be made in case of the member’s death.
What guarantees the safe operation of the IORP?
The operation of the occupational retirement provider is supervised by the Central Bank of Hungary.
QUAESTOR Foglalkoztatói Nyugdíjszolgáltató Zrt. is a private limited company operating by non-self-governmental principles, but by well-defined ownership background and responsibilities.
QUAESTOR Foglalkoztatói Nyugdíjszolgáltató Zrt. continuously has the access to EUR 3.7 million safety capital, according to statutory requirements that can be involved in operation immediately without any consent of a third party.