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Duties and responsibilities

The central office performing the central administration of statutory social and pension insurance is the Central Administration of National Pension Insurance (ONYF), controlled and supervised by the Government via the Minister for social and labor affairs who is in charge of political issues regarding retirement.

The Central Administration of National Pension Insurance manages the Pension Insurance Fund supervised by the Government and controls the performance of administrative and official tasks set forth by legislation, as well as the altogether seven regional pension insurance directorates executing these tasks, the Pension Payment Directorate and the Directorate for Central Pension Record and Informatics.

In the area of social insurance pensions, it is the Central Administration of National Pension Insurance that acts as a liaison body in accordance with Council Regulations (EC) No 883/2004  and (EC) a 987/2009,/and with the agreements on social security and social policy in force.

Regional pension insurance directorates assess claims for pensions and other benefits based on territorial competence, according to the residence of the applicant. Their professional supervision is exercised by CANPI.

Directorate for Central Pension Record and Informatics is responsible for central recording and the supervision of IT-systems; guarantees the IT-services necessary for the operative tasks of CANPI and its central administrative bodies, the pension insurance directorates of county government offices which belong to its jurisdiction; safeguards for the IT operations properly adapted with regard to the specifications of the constant organization of the relevant systems.

The Pension Payment Directorate’s main task is the disbursement of pensions, with exclusive competence. In addition, it investigates claims of survivors, where the insured person died as a pensioner, and it disburses a number of non-social security benefits, as well. It is also responsible for managing international pension affairs, investigating pension claims and awarding pensions.

CANPI functions as administration body of second instance when judging appeals concerning official cases of pension insurance administration bodies.

The efficient utilisation of the funds of the Pension Insurance Fund, that is, of the contributions paid by employees and employers and those assumed by the budget as well as of other payments is supervised by the Pension Insurance Controlling Body in accordance with the stipulations set forth in Act XXXIX of 1998.



Key pension systems and pension benefits laws

All substantial and significant rules of the Hungarian pension system are regulated by laws and the procedural and technical issues are contained in government decrees on implementation. Naturally, the Community Regulations effective from May 1, 2004 shall be applied automatically.

Relevant Acts:

Act XCVI of 1993 on Voluntary Mutual Insurance Funds. This Act regulates the scope of activity, organization, management, organizational changes and supervision of the voluntary funds.

Act LXXX of 1997 on persons entitled to social security provision and private pensions and on funding these services. This Act determines who the insured parties are, the extent of contributions, the method of contribution payments and obligations to keep records and supply data.

Act LXXXI of 1997 on social security pension benefits. This Act determines the criteria for pension entitlement and the extent of benefits.

Act LXXXII of 1997 on private pensions and private pension funds. This Act regulates the foundation, organization, operation, management, services and supervision of private pension funds.

Act CLXXIII of 2005 on raising pensions with the purpose of adjustment;

Act LXXXIV of 2007 on rehabilitation pension;

Act CLXVII of 2011 on the termination of early retirement pension, on the benefits prior to retirement age and on the benefits of the official members of the armed forces;

Council Regulation (EEC) No 1408/71 on the application of social security schemes to employed persons, to self-employed persons and to members of their families moving within the Community and Council Regulation (EEC) No 574/72 of March 1972 laying down the procedure for implementing Regulation (EEC) No 1408/71 on the application of social security schemes on employees, self-employed persons and their relatives moving within the Community;

European Parliament and Council Regulation (EC) No 883/2004 on the coordination of social security systems and European Parliament and Council Regulation (EC) No 987/2009 down the procedure for implementing Regulation (EC) No 883/2004.



Central Administration of National Pension Insurance