Hungarian State Treasury

European Union pension matters are cases where, in addition to Hungarian legislation, the rules of the European Union Regulations on the coordination of social security (hereafter: the Coordination Regulations) must also be applied by the Hungarian pension administration body.

This can happen if:

• the benefit applied for falls within the scope of the Coordination Regulations,
• the applicant, and in the case of a survivor's pension, the deceased insured person, was subject to the legislation of at least two Member States to which the Coordination Regulations apply.

The principle of coordination therefore applies in EU pension matters, which means that each country concerned applies its own national legislation when assessing the conditions for entitlement to benefits, but the procedure for awarding benefits is subject to common rules.

Among the benefits falling within the competence of the pension insurance administration bodies, the following Hungarian benefits fall within the scope of the Coordination Regulations:

• old age pension, including Women’s preferential pension,
• widow(er)'s pension, including work accident-related widow(er)'s pension,
• orphan's allowance, including work accident-related orphan's allowance,
• parental pension, including work accident-related parental pension,
• benefits prior to retirement age,
• transitional annuity for miners,
• life annuity for dance artists,
• work accident annuity

The territorial scope of the Coordination Regulations covers the Member States of the European Union and those countries which, by virtue of an agreement with the European Union, recognise the Regulations as binding law applicable to them.

These countries are: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France (including Guadaloupe, Guyana, Réunion, Martinique, Mayotte, Saint-Martin), Greece, Netherlands, Croatia, Ireland, Island, Poland, Latvia, Liechtenstein, Lithuania, Luxembourg, Hungary, Malta, Germany, Norway, Italy, Portugal (including Madeira and the Azores), Switzerland, Romania, Spain (including the Canary Islands), Sweden, Slovakia, Slovenia.

For service periods completed in the United Kingdom, the rules of the Coordination Regulations apply to periods of service commenced before 1 January 2021, and the provisions of the Cooperation Agreement with the European Union apply to service periods commenced after that date. In both cases, the overseas territories, with the exception of Jersey and the Isle of Man, are considered to be part of the United Kingdom. For detailed information on the United Kingdom, see the information "Pensions after the exit of the United Kingdom from the European Union".

It is an essential principle that the Coordination Regulations ensure that citizens are not disadvantaged in accessing certain benefits because they have exercised their right to move and reside freely and have not worked in only one country.

Accordingly, the Regulation therefore contains uniform procedural rules for claiming benefits, for taking into account facts and events in other countries, such as service period entitling to pension, when assessing eligibility, and for direct access to benefits.

However, the assessment of entitlement to benefits is always based on the legislation of the country providing the benefits, and therefore the Hungarian social security legislation must be applied in addition to the Coordination Regulations when assessing Hungarian pension claims. It is therefore possible that a person with a service period in several EU countries may not receive a pension from the same date, as the retirement ages and eligibility conditions differ in the countries.

Each country only awards a pension on the basis of earnings and contributions earned in its own territory, but takes into account service periods in other countries to qualify for the benefit.

Accordingly, both Hungary and the country of employment abroad determine the pension if the conditions of eligibility laid down in their own legislation are met, and the pension is calculated and paid on the basis of the national legislation of the country that determines the pension.

As a general principle, facts and events occurring in the countries applying the Coordination Regulations when benefits are awarded and paid should be assessed as if they had occurred in the country responsible for awarding or paying the benefits.

For example:

• in the case of a widow(er)’s pension, a marriage or cohabitation abroad may result in the termination of payment of the widow(er)’s pension,
• in the case of an orphan's allowance, full-time studies abroad are a basis for entitlement to Hungarian orphan's allowance
• the amount of the widow(er)’s pension is also affected by the old age pension determined abroad.

Regardless of whether the Hungarian pension is claimed in Hungary or abroad, the application can be accompanied by documents relating to the applicant's or, in the case of a survivor's pension, the deceased's previously unrecognised Hungarian service period. Such proof may include:

• labour book, certificate of employment, certificate of insurance and health insurance benefits, outworker's book, membership book of agricultural or fishery cooperatives,
• college or university course book, final certificate, diploma, industrial apprenticeship work record book, vocational apprenticeship certificate, certificate of vocational school in health or agriculture, diploma or vocational school student contract.

In the case of an orphan's allowance claim, if the orphan is over 16 years of age, a certificate of full-time education must also be attached.

Application filed in Hungary

The claim form may also require the following additional forms to be completed:

• a supplementary form to provide information on employment and early retirement periods can be downloaded here,
• the supplementary form for self-employment can be downloaded here
• the supplementary form for children can be downloaded here.

When applying for a survivor's pension, you must also submit the death certificate and, in the case of a widow(er)'s pension, the marriage certificate. When applying for a work accident-related survivor's pension, you must also submit the decision recognising the accident at work, if available.

The foreign documents required for the establishment of the Hungarian pension do not need to be translated into Hungarian if the document is issued in an official language of a European Economic Area country or a convention country.

The official languages of the European Economic Area are: Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Icelandic, Irish, Latvian, Lithuanian, Maltese, Italian, Norwegian, Polish, Portuguese, Romanian, Slovak, Slovene, Spanish, Swedish.

If you apply for a pension abroad in Hungary, you must submit to the Hungarian pension determination body not only the documents required for the assessment of the Hungarian pension but also the foreign pension.

Such documents may include in particular:

• a certificate proving the foreign pension insurance number,
• documents relating to legal status abroad, e.g. labour book, work contract, military record book, period of higher education,
• other documents requested by the foreign body, e.g. income certificate, certificate of marital status,
• documents relating to the carried name, change of name.

Documents submitted in a foreign language for the purpose of determining the foreign pension do not need to be translated into Hungarian, but will be forwarded by the Hungarian pension determination body to the foreign body concerned ex officio.

International pension cases are assessed by the Government Office of the Capital City Budapest (Customer Service: Budapest, district VIII. Fiumei út 19/a., postal address, 1916 Budapest), but pension claims can be submitted at any government office acting as a pension insurance administration body.

The Government Office of the Capital City Budapest is in contact with all the foreign pension administration bodies concerned in order to assess the Hungarian and foreign benefits applied for. It forwards applications for foreign benefits, the documents necessary for the establishment of foreign pensions, and certifies the Hungarian service period and other data to the foreign pension insurance bodies.

The Hungarian pension will be recalculated:

• if, after the Hungarian pension has been awarded, a pension is awarded in a country covered by the Coordination Regulations,
• if the previously deferred foreign pension is calculated by taking into account any additional service period abroad completed after the Hungarian pension was granted.

The purpose of the recalculation is to take into account the Hungarian and  foreign service periods completed during the whole career of the person concerned in the calculation of benefits.

With the recalculation the amount of the Hungarian pension under the pro rata calculation is recalculated ex officio on the starting date of the foreign pension, taking into account the total foreign service period, since the amount of foreign service used for the pro rata calculation has changed with regard to the additional period of foreign service completed after the Hungarian pension was determined.

If the amount of the independent benefit was also determined when the pension was determined, it will not be recalculated with regard to the foreign pension, since in that case the service period has not changed.

The amount determined as a result of the recalculation is compared to the amount of the Hungarian pension paid on the starting date of the determined foreign pension and the higher of the two amounts is paid.

If the Hungarian pension was determined using only the pro rata method only, the amount of the Hungarian pension after the recalculation may be lower because the ratio of the Hungarian to total service is less favourable due to the additional service period abroad.

Benefits under the Coordination Regulations are paid directly to the person receiving the pension, irrespective of the country of residence.

They are paid in accordance with the rules of the country where the benefit was granted, so Hungarian pensions and pensions paid abroad cannot be combined.

Information on the payment of a pension established abroad may be provided by the pension insurance body of the country of determination.

The Hungarian benefits are paid by the Pension Payment Directorate of the Hungarian State Treasury (1139 Budapest, Váci út 73, postal address: 1820 Budapest).

Information on the payment of benefits to beneficiaries living in Hungary can be found in the information "Payment of pensions and benefits equivalent to pensions in Hungary", and information on the payment of benefits abroad in the information "Payment options for beneficiaries living abroad".