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  • 1 Institute of Economic Research, Hitotsubashi University 2-1 Naka, Kunitachi city, Tokyo 186-8603, Japan
  • | 2 Institute of Russian and East European Economic Studies, Japan Association for Trade with Russia and Central-Eastern Europe (ROTOBO) Tokyo, Japan
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The new pension system launched in Hungary in 1998 is epoch-making for having introduced a mandatory private pension scheme (MPPS). However, the political decision-making on pension reform and the scheme operations have been greatly influenced by conflicts of interests among ministries, political conflicts between parties, and the presence of special interest groups, including trade unions and financial institutions. This situation may have had a certain negative influence on the legal framework of the MPPS and on the management performance of private pension funds. In order for the MPPS to be sustainable in the future and to make insurance beneficiary profits a top priority, the corporate governance reform of pension funds and reinforcement of the monitoring system over them, and political neutralisation of the public pension system are necessary.

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