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The OSC has interpreted the pension law differently from pension organizations since 2012. Based on the number of CSOs, the government will determine how much pensions should be raised retroactively in November if inflation is higher than planned. However, according to pension organizations, according to the law, the data provided by the OSC should not be used; drew attention to the 24.hu.
According to the Pensions Law, pensions must be increased in January by the amount of the increase in consumer prices foreseen in the budget for the year in question. That was 2.8 percent for this year. If, on the contrary, inflation is expected to be higher, pensioners will receive a further increase in pensions in November. This year that is why there is an addition. In the case of a difference of at least 1 percent, an increase in the supplementary pension must be granted in November until January, and the increase in the pension must be paid in December. If the difference is less than 1 percent, in November, the difference for the whole year must be paid at once: read on the portal.
The Consumer Price Statistics for August from the Central Statistical Office show annual inflation in August (3.9 percent this year) and average inflation in January-August (3.5 percent). However, the amount of retirement inflation in January-August was not disclosed in the flash report. Not just this year, but not before, the OSC acknowledged this in response to the September 24 issue, adding that in the event of an individual request, they would be happy to inform those interested.
The law is interpreted differently by CSOs and pension organizations.
The CSO wrote that, according to the Pensions Law, the expected rate of inflation for pensions based on the first eight months of the current year refers to the change in the consumer price index of pensions compared to the same period of January-August 2020. This indicator is the average of the changes in the pension consumer price index compared to the same period of the previous year for the period from January to August 2020. It was also reported that in January-August 2020, the retired consumer price index increased 4.0 percent year-on-year, which means that this value can be factored into November’s retrospective pension increase.
However, the law does not establish what the OSC says in its response, that is, that the retroactive adjustment of pensions must be determined on the basis of the “expected inflation rate of pensioners based on the first eight months of the year in course”. Rather, “the expected rate of increase in consumer prices for retirees, based on actual data for the first eight months of the year considered, should be taken into account if it exceeds the expected rate of increase in consumer prices.”
According to the expert from the Pensioners’ Unions Conciliation Council (Nyuszet), this means that the OSC must estimate both the expected annual inflation rate of pensions (January-December) and the expected annual average inflation rate based on data factual from January to August. And if the former is higher, it must be compared to the January pension increase, and the difference between the two must be taken into account in the retroactive November increase. After all, the law also talks about expected values, based on factual data from January to August. There is absolutely no trace of this expected value in the statistics.
But even if we accept the interpretation of the law by CSOs, according to Nyuszet president László Juhász, the 4 percent pensioner inflation between January and August will not be correct. Its economic expert was previously the president of the CSO; says that although there is a slowdown in inflation, including retirement inflation, pension inflation in January-August may have been around 4.3 percent. That is to say 1.5 percent there would have been a retroactive increase in pensions.
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