Benefits prior to retirement age
Related forms (3)
LEGISLATION
WHO IS ENTITLED TO BENEFITS PRIOR TO RETIREMENT AGE?
A person may be entitled to benefits prior to retirement age if
- has acquired early retirement by 31 December 2014 at the latest on the basis of service in a hazardous job with early retirement benefit and has at least 15 years of service,
- has acquired the right to a miners' pension under the rules of Government Decree 150/1991 (XII. 4.) on the miners' pension in force before 1 January 2012,
- until 31 December 2011, has acquired the right to an old age pension under the rules of Government Decree 150/1991 (XII. 4.) on the pension of performers of certain artistic activities in force before 1 January 2012.
Benefits prior to retirement age may be established if the applicant has not reached the retirement age by the date of commencement of the benefits prior to retirement age, is not entitled to a transitional annuity for miners or life annuity for dance artists and is not in receipt of a regular cash benefit.
The transitional annuity for miners and life annuity for dance artists are also benefits prior to retirement age, the conditions for entitlement to which are set out in a separate information.
It is considered to be a regular cash benefit: sickness benefit, infant care allowance, adoption fee, child care fee, old age pension, benefits prior to retirement age, service benefit for armed forces, life annuity for dance artists, transitional annuity for miners, benefits for persons with changed working capacity, work accident sick pay, job-seeker benefit, job-seeker aid before pension, child raising support, employment substituting benefit, benefit for people suffering from health problems or taking care of a child, public service allowance and benefits of the same type paid by a foreign body under international agreements on social security and EU regulations.
WHO IS ENTITLED TO BENEFITS PRIOR TO RETIREMENT AGE UNDER THE EARLY RETIREMENT SCHEME?
A person is entitled to benefits prior to retirement age on the basis of early retirement if they have performed work involving increased physical exertion and work which is particularly harmful to health and is therefore entitled to a benefit prior to retirement age of at least two years.
The rate of early retirement is determined as follows.
The following are entitled to an early retirement allowance of two years in relation to the retirement age:
- a man who has worked for at least 10 years and a woman who has worked for at least 8 years in a job giving entitlement to an early retirement pension,
- a person who has worked in an atmosphere with a pressure of more than 100 kPa for at least six years.
An additional year of early retirement is granted for each additional five years of work in a job giving entitlement to early retirement, four years for women and three years for each additional three years of work in a pressure zone above 100 kPa.
Each thirty days of the time taken into account for work in an atmosphere of more than 100 kPa may be added to the time spent in other jobs giving entitlement for the early retirement by fifty days.
The period of entitlement to early retirement may only be before 1 January 2015.
The jobs and workplaces covered by the provisions in force on 31 December 2006 are entitled to the early retirement, with the exception that work performed as of 1 May 2008 as a driver in regular public transport and passenger transport, regardless of the type of vehicle, as listed in the job register, is entitled to the early retirement.
According to the rules of the Government Decree on social security benefits for certain mining workers in force before 1 January 2012, a miner who has entitled to early retirement may also be entitled to benefits prior to retirement age, except that a miner may be entitled to one year of early retirement even if they have only worked for three years in a job that entitles to early retirement, provided that the other conditions are met.
HOW TO APPLY FOR BENEFITS PRIOR TO RETIREMENT AGE?
Benefits prior to retirement age must be applied for from the government office acting as the pension insurance administration body of the place of residence, using the form "Claim for old age pension, women's preferential pension, fixed old age pension, benefits prior to retirement age, life annuity for dance artists, transitional annuity for miners".
The application for benefits prior to retirement age can be submitted in person, by post or electronically.
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 marked with name of the government office addressed and the uniform postal address of 1916 Budapest.
Electronically, persons with electronic identification can submit their claim for a pension at www.magyarorszag.hu.
The claim may be submitted by the applicant's legal representative (guardian) or by their authorised representative, accompanied by a document proving the representation.
The contact details of the government offices can be found at www.kormanyhivatalok.hu.
WHAT TO ATTACH TO THE CLAIM?
Claims for benefits prior to retirement age must be accompanied by a certificate from the employer attesting to the period of time spent in early retirement.
The claim may be accompanied by documents relating to service periods not previously recognised. 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 labour book, vocational apprenticeship certificate, certificate of vocational school in health or agriculture, diploma or vocational school student contract for the period before 1998.
The application form can also be completed with the following additional forms:
HOW LONG IS THE BENEFITS PRIOR TO RETIREMENT AGE ESTABLISHED?
The administrative time limit is 60 days.
The established benefit will be paid by the Pension Payment Directorate of the Hungarian State Treasury within 10 workdays of the decision being issued.
FROM WHEN CAN BENEFITS PRIOR TO RETIREMENT AGE BE ESTABLISHED?
The earliest date from which benefits prior to retirement age can be established is the first day of the sixth month preceding the month in which the claim is made, provided that the conditions for entitlement are met on that date.
HOW IS THE AMOUNT OF THE BENEFITS PRIOR TO RETIREMENT AGE CALCULATED?
The amount of the benefits prior to retirement age is calculated according to the rules for calculating the old age pension, based on the recognised service period and the average monthly earnings taken into account.
The amount of average earnings on which the benefit prior to retirement age is based is determined on the basis of the earnings or income on which the pension contribution is based, from 1 January 1988 until the date on which the benefit is calculated.
The calculation of the amount of the benefit shall also be based on the calculation of the proportional service period. Only the proportionate period of contribution payment may be taken into account if the contribution payment was made for an amount lower than the minimum wage for example in the following cases:
- part-time employment,
- low tax-bracket entrepreneurs in full-time employment status,
- small taxpayer business status,
- small-scale agricultural producer status.
The amount of the benefits prior to retirement age shall be calculated in proportion to the service period taken into account for the calculation and the average monthly earnings, as follows.
Service period |
Percentage of the average monthly earnings on which the benefit is based |
15 years |
43% |
16-25 years |
additional 2 % per year of service |
26-36 years |
additional 1% per year of service |
37–40 years |
additional 1.5% per year of service |
41–49 years |
additional 2 % per year of service |
50 years or more |
100% |
DOES MEMBERSHIP OF A PRIVATE PENSION FUND AFFECT THE AMOUNT OF THE BENEFITS PRIOR TO RETIREMENT AGE?
Since the rules applicable to old age pensions apply to the calculation of the benefits prior to retirement age, membership of a private pension fund also affects the amount of the benefits prior to retirement age in the following cases.
The amount of the benefit prior to retirement age is reduced if the applicant has paid contributions to a private pension fund for a period before 1 October 2010 and
- they are still a member of a private pension fund at the time when the benefit prior to retirement age is established, or
- their membership of a private pension fund has been terminated without the amount in their individual account having been transferred to the State budget.
In order to receive the full amount of benefits prior to retirement age, it is allowed to re-join the state pension scheme at the time of claiming the benefit or afterwards. In this case, after the transfer, the amount of benefit is calculated retroactively to the starting date of the establishment without reduction.
WHAT TO DO IN CASE OF DISAGREEMENT WITH THE DECISION?
No appeal may be lodged. If the decision is unlawful, a statement of claim can be lodged within 30 days to have it reviewed by the court with jurisdiction over the administrative college of the place of residence.
The letter of claim must be lodged, free of charge, with the pension insurance body which took the decision or sent by registered post. After electronic identification, the claim can also be filed electronically on the https://epapir.gov.hu interface. After entry, in the subject group "Jogorvoslat" the case type "Közigazgatási szerv határozatának bírósági felülvizsgálata iránti keresetlevél benyújtása" should be selected.
CAN BENEFITS PRIOR TO RETIREMENT AGE BE TERMINATED?
A person receiving benefits prior to retirement age may request that the benefit be terminated before the retirement age is reached. The request to terminate the benefit must be made in writing to the government office acting as the pension insurance administration body in the place of residence. However, in this case, no new benefits prior to retirement agemay be established later.
The benefits prior to retirement age cease when the person in receipt of the benefit reaches the retirement age, from which date it is automatically paid as an old age pension.
The benefit will also cease if the person receiving a benefit is granted an early old age pension for women.
OPTIONS WHEN REACHING THE RETIREMENT PENSION AGE
Beneficiaries of benefits prior to retirement age who have completed at least 365 days of service during the period for which the benefit is paid may request that the amount of the old age pension be re-established once they reach the retirement age.
The old age pension will only be established if its amount at the date of reaching the retirement age it is more favourable than the amount of the benefit prior to retirement age payed.
The application for recalculation of the old age pension may be submitted no earlier than the date on which the retirement age is reached. The claim may be made retroactively, without time limit, regardless of whether the benefit prior to retirement age is paid as an old age pension after the age limit has been reached.
The 365 days of service required for the re-establishment of the amount of the old age pension must be acquired between the date on which the payment of the benefit prior to retirement age starts and the day before the retirement pension age is reached, but not earlier than 1 January 2012.
Since a beneficiary of benefits prior to retirement age is considered to be an old age pensioner as from the date of reaching the retirement age, the re-establishment of the amount of the old age pension does not require an examination of the conditions for entitlement to an old age pension.
At the government office of the applicant's place of residence.
The envelope must be marked with name of the government office of the applicant's place of residence.
The uniform postal address is:
1916 Budapest.