Pension cases covered by agreements

Social Security Agreement between Hungary and Mongolia

WHEN DID THE HUNGARIAN-MONGOLIAN SOCIAL SECURITY AGREEMENT ENTER INTO FORCE?

The Hungarian-Mongolian Social Security Agreement (the Agreement) has been effective since 1 June 2012.

BENEFITS UNDER THE AGREEMENT FOR WHICH THE PENSION DETERMINATION BODIES ARE RESPONSIBLE

In Hungary:

  • old age pension,
  • survivor's pension,
  • work accident-related survivor’s pension

In Mongolia:

  • old age pension,
  • disability pension,
  • survivor's pension

THE FOLLOWING PERSONS MAY APPLY FOR THE ABOVE BENEFITS UNDER THE AGREEMENT

Under the Agreement, a person can claim pension benefits regardless of nationality if they have paid contributions in both Hungary and Mongolia. For survivor’s pensions, proof of payment of contributions in both countries must be provided for the deceased insured person.

RULES ON THE PAYMENT OF CONTRIBUTIONS

The obligation to pay contributions applies, as a general rule, in the country where the person concerned earns the income, irrespective of the country in which the employee is resident or the country where the employer is established.

For posted workers, the country in which the posting employer is established is the country where contributions are payable.

Special rules apply to persons engaged in international transport of passengers, goods or working on ships, public servants and members of diplomatic missions and consular posts.

In order to determine the existence of insurance, i.e. the obligation to pay contributions, the request must be submitted to the government office acting as the competent health insurance administration body for the place of business of the employer in Hungary.

SUBMITTING A CLAIM FOR PENSION BENEFITS

In the case of residence in Hungary you should complete the following documents:

Proposed under the Agreement

  • for a claim for old age pension benefit, the form called “In the case of a claim for international old-age pension and other benefits in own right for service periods acquired in a contracting party of the agreement” 
  • for a claim for survivor’s pension, depending on the type of claim, the following forms are relevant:
    • for widow(er)’s pension or an work accident-related widow(er)’s pension “Claim for widow(er)'s pension  or work accident-related widow(er)'s pension under the scope of Act LXXXI of 1997, Act LXXXIII of 1997 and social policy or social security agreement” or
    • for orphan's allowance or a work accident-related orphan's allowance the so called „Claim for orphan's allowance or work accident-related orphan's allowance under the scope of Act LXXXI of 1997, Act LXXXIII of 1997 and social policy or social security agreement” or
    • for parental pension or work accident-related parental pension „Claim for parential pension or work accident-related parential pension under the scope of Act LXXXI of 1997, Act LXXXIII of 1997 and social policy or social security agreement”

To apply for a Mongolian pension, you must also fill in form HU-MN 207 (Tájékoztatás a biztosított személy biztosítási múltjáról).

The forms required for submitting a claim can be obtained from the pension insurance bodies or downloaded from the "Related forms" menu point next to the information tab.

The claim form must be accompanied by available documents relating to the insurance periods completed in Mongolia.

The claim can be submitted in person or by post.

It may be submitted in person at the customer service of the government office of the capital or county according to the place of residence or stay.

If it is submitted by post, the envelope must be addressed to the Government Office of the Capital City Budapest and marked with the uniform postal address 1916 Budapest.

The claim may be submitted by the applicant's legal representative (guardian) or by their authorised representative, accompanied by a document proving the representation.

In the case of an application for a survivor's benefit, if a survivor's pension has already been established in relation to the deceased insured person or if the application is for the revival of a survivor's pension previously paid, the claim may also be submitted at the customer service of the Pension Payment Directorate of the Hungarian State Treasury (1139 Budapest Váci út 73.).

The date of submission of the claim in Mongolia is also the date of submission of the claim to the Hungarian pension insurance body.

The application, the documents enclosed by the applicant and the certificate of the service period recognised under Hungarian legislation will be forwarded by the Government Office of the Capital City Budapest to the Government Implementing Agency State Social Insurance, General Office (Ulanbataar-211238, Chingeltei District, Baga toiruu 13/1, Mongolia), the pension insurance body, responsible for the assessment of the Mongolian pension.

In the case of residence in Mongolia:

For any questions regarding how to apply for a pension in Mongolia and any questions regarding entitlement for a pension in Mongolia, it is advisable to contact the Mongolian pension administration body in the place of residence.

To apply for a Hungarian pension, a form MN-HU 207 must be filled in along with the Mongolian application forms.

The contact details of the Central Pension Body are:

Government Implementing Agency State Social Insurance, General Office

Address: Ulanbataar-211238, Chingeltei District, Baga toiruu 13/1, Mongolia

Phone: 00 976 11 321162

Fax: 00 976 11 321162

e-mail: undeg@ndaatgal.mn

The application submitted in Mongolia will be forwarded by the Mongolian body to the Government Office of the Capital City Budapest, together with proof of the periods of insurance completed there.

ASSESSMENT OF PENSION CLAIMS

If the entitlement for the benefit applied for by the applicant exists on the basis of the Hungarian service periods, the insurance periods certified by the Mongolian Pension Administration Body shall not be taken into account for the determination of the Hungarian pension.

The minimum periods required for a Hungarian pension are as follows:

  • 20 years of service period for old age pension,
  • 40 years of eligibility period for women's preferential pension,
  • for survivor's pensions, the period of service corresponding to the age of the deceased insured person.

If the entitlement for the benefit cannot be established solely on the basis of the Hungarian service period, the insurance periods certified by the Mongolian pension administration body shall also be taken into account for the pension as if they had been completed under Hungarian legislation, provided that they do not fall within the same period.

The Agreement excludes double insurance, but service periods completed in Hungary and Mongolia before the date of entry into force may overlap. These periods may be taken into account only once when applying the aggregation rule.

If the applicant has at least 15 years of service period required for a Hungarian pension only after aggregating the periods of insurance, the amount of the pension is calculated on the basis of the Hungarian and Mongolian periods of insurance. In the case of a survivor's pension, the period of insurance in Mongolia shall be taken into account if the deceased insured person does not have the period of service in Hungary corresponding to their age.

The pension to be determined is the proportion of the insurance periods completed under Hungarian legislation in relation to the total insurance periods. The amount of the Hungarian pension is determined solely on the basis of earnings and income in Hungary.

If the completed insurance period is less than one year and no benefit can be established on that basis in the country where the insurance period was completed, the period of less than one year certified by the Mongolian pension administration body shall be taken into account as Hungarian insurance period, while the Hungarian period of less than one year shall be taken into account as Mongolian insurance period.

PAYMENT OF PENSION BENEFITS

Pension benefits are paid directly to the beneficiary in accordance with the legislation of the country that established them. The amount of the established benefit shall remain unchanged for the beneficiary living in the territory of the other country.

The established Hungarian benefits are paid by the Pension Payment Directorate of the Hungarian State Treasury (1139 Budapest, Váci út 73., postal address: 1820 Budapest), detailed information on which can be found in the information "Payment options for  beneficiaries living abroad.