Brochure

On the payment of benefit for beneficiaries living abroad

According to paragraph 79 (2) of the Act LXXXI of 1997 on social security pension benefits (hereinafter Act) and paragraph 75 of its administrative governmental decree 168/1997. (X.6.) (hereinafter Gov. decree) as of 1 January 2013, beneficiaries living abroad may choose the following options for payment of their (pension) benefit:

1) To a representative who is resident in Hungary

a) via postal delivery (without transferring costs),

b) via bank account managed by a Hungarian payment service provider (without transferring costs),

2) Payment to an own Hungarian bank account (without transferring costs), or

3) Payment to a bank account managed in one of the EEA states (without transferring costs), or

4) Payment to a bank account managed in a country pursuant to a bilateral agreement, with payment of transferring costs

5) Payment to a bank account managed by Erste Bank Hungary (If a beneficiary living abroad and would like to request the payment of the benefit to an own Hungarian bank account, and cannot travel to Hungary to open an account, in addition to the above, it is possible to sign a contract by post for opening an account with Erste Bank Hungary Zrt.)

Payment via direct postal delivery is not possible for beneficiaries living abroad.

Considering the aforementioned information the European Economic Area (EEA) states are the following:

● the Republic of Austria, the Belgian Kingdom, the Bulgarian Republic, the Republic of Cyprus, the Republic of Croatia, the Czech Republic, the Kingdom of Denmark, the Republic of Estonia, the Republic of Finland, the French Republic, the Federal Republic of Germany, the Hellenic Republic, Ireland, the Republic of Iceland, the Italian Republic, the Republic of Latvia, the Principality of Liechtenstein, the Republic of Lithuania, the Grand Duchy of Luxembourg, the Republic of Malta, the Kingdom of the Netherlands, the Kingdom of Norway, the Republic of Poland, the Portuguese Republic, Romania, the Slovak Republic, the Republic of Slovenia, the Kingdom of Spain, the Swiss Confederation, the Kingdom of Sweden and the United Kingdom of Great-Britain and North-Ireland.

Countries pursuant to a bilateral agreement: 

the Albanian Republic, Australia, Bosnia and Herzegovina, Canada (Québec), the Republic of India, Japan, the Republic of Korea, the Republic of Kosovo, the F.Y.Republic of Macedonia, Mongolia, Montenegro, the Republic of Serbia and the United States of America.

The Pension Payment Directorate (1139 Budapest, Váci út 73., Postal address: 1820 Budapest) can fulfil the payment to a Hungarian bank account and the delivery to a postal address only in Hungarian forint (HUF).

Transferring the benefit to a bank account managed in an EEA state or country pursuant to bilateral agreement, is only possible in the currencies vended by the Hungarian Central Bank, namely in American dollar (USD), English pound (GBP), Australian dollar (AUD), Czech crown (CZK), Danish crown (DKK), Euro (EUR), Japanese yen (JPY), Canadian dollar (CAD), Hungarian forint (HUF), Polish zloty (PLN), Norwegian crown (NOK), Swiss franc (CHF), Swedish crown (SEK).

The beneficiary may choose the currency, though a successful payment is only possible if the given bank account is able to receive that particular currency.

I. Necessary documents and statements for the payment

The statement of the method of payment has to include the following data – please fill in the payment form no. 3970-003.

1) To a representative who is resident in Hungary

a) via postal delivery: the authorization which includes the name and address of the representative person.

b) in case of payment to an own bank account managed by a Hungarian payment service provider, it is necessary to attach an authorization containing the name and address of the authorized representative person furthermore the name, address and account number of the payment service provider.

2) In case of payment to an own bank account managed by a Hungarian payment service provider, the name and address of the relevant provider and the account number has to be stated.

3) Benefits are payable to a bank account managed in one of the EEA states with providing the following data.

-          name of the foreign payment service provider,

-          address of the foreign payment service provider (country, city, street and number),

-          SWIFT (BIC) code of the foreign payment service provider,

-          the international bank account number (IBAN).

Should you have any questions regarding BIC/SWIFT and IBAN numbers, we suggest contact your bank directly in order to provide them accurately.

4) Benefits are payable to a bank account managed in a country pursuant to a bilateral agreement with providing the following data.

-          name of the foreign bank,

-          address of the foreign bank (country, city, street and number),

-          SWIFT (BIC) code of the foreign bank and/or the identity code of the bank,

-          the bank account number.

In case of Australia/BSB/, Canada, and the United States of America, the identity numbers are compulsory. In Australia, the bank identifier code is 6 digits, in Canada 9 digits, and also 9 digits in the United States of America.

Should you have any questions regarding BIC/SWIFT, IBAN numbers or bank identity code, we suggest contact your bank directly in order to provide them accurately.

5) In case of transferring the amount to Erste Bank Hungary the statement of the beneficiary is needed.

Transferring the benefit to a bank account is only possible if the beneficiary (or the representative in case of a payment to a representative person) is an owner or joint owner of the bank account.

In case of payment to a bank account number, please use Ø character for zero. For the accuracy of the payment we suggest to enclose the header of a regular bank report which contains the bank account.

II. Costs of payment

There are no expenses for transferring the benefit directly to an EEA state. Nevertheless we also inform you that in case of payment to a Hungarian bank account, the further transferring of the amount is charged according to the internal business rules of the given bank which has to be covered by the beneficiary.

Expenses of direct payment to a country pursuant to a bilateral agreement have to be covered by the beneficiary, which is HUF 2500 in 2017. Beyond this amount further receiving costs might be added according to internal business rules of the given foreign bank.

We draw your attention to that irrespective of the cost-covering options of the payment, expenses of wrong or unsuccessful transfers stemming from incorrectly provided data will be deducted from the beneficiary’s Hungarian benefit.

This applies also if the transfer is unsuccessful because the foreign bank is not able to receive the currency which was previously selected by the beneficiary.

III. Payment of benefits under the pension minimum

As of 1 July 2013 for beneficiaries living in an EEA state, in a country pursuant to a bilateral agreement or in any other foreign countries, payment on a quarterly, half yearly or yearly basis posterior is also possible – if the Hungarian benefit is under the prevailing Hungarian old-age pension minimum (HUF 28 500/month in 2017). The detailed methods are the following.

  • In case of payment on a quarterly basis, benefits due from 1 January to 31 March are transferred in March; benefits due from 1 April to 30 June are transferred in June; benefits due from 1 July to 30 September are transferred in September and benefits due from 1 October to 31 December are transferred in December – in a lump-sum payment.
  • In case of payment on a half yearly basis, benefits due from 1 January to 30 June are transferred in June, and benefits due from 1 July to 31 December are transferred in December – in a lump-sum payment.
  • In case of payment on a yearly basis, benefits due from 1 January to 31 December are transferred in December – in a lump-sum payment.

Wishing to use the scheduled payment, please indicate this on the payment form no. 3970-003.

IV. Examples for the (pension) payment methods detailed above

1) To a representative who is resident in Hungary

a) payment via postal address:

Beneficiary living in an EEA state (e.g. Romania), country pursuant to a bilateral agreement (e.g. Australia) or in any other foreign countries (e.g. Republic of South-Africa) may decide that his/her benefit shall be transferred by the Pension Payment Directorate to a representative who is resident in Hungary via the representative’s postal address. This option is free of charge.

b) payment via Hungarian bank account:

Beneficiary living in an EEA state (e.g. Ireland), country pursuant to a bilateral agreement (e.g. Canada) or in any other foreign countries (e.g. Republic of Paraguay) may decide that his/her benefit shall be transferred by the Pension Payment Directorate to a representative who is resident in Hungary via the representative’s Hungarian bank account. This option is free of charge; nevertheless if the amount is transferred from here to another internal/foreign bank account, both the sender and the receiver bank might charge their expenses.

2) Payment to an own Hungarian bank account:

Beneficiary living in an EEA state (e.g. the Slovak Republic), country pursuant to a bilateral agreement (e.g. Montenegro) or in any other foreign country (e.g. People’s Republic of China) may decide that the benefit shall be transferred by the Pension Payment Directorate to the beneficiary’s own Hungarian bank account. This option is free of charge; nevertheless if the amount is transferred from here to another internal/foreign bank account, both the sender and the receiver bank might charge their expenses.

3) Payment to a bank account managed in one of the EEA states:

Beneficiary living in an EEA state (e.g. Republic of Austria), may decide that the benefit shall be transferred by the Pension Payment Directorate to the beneficiary’s own bank account managed in any EEA states (i.e. either in the Republic of Austria or in another EEA state) in one of the currencies vended by the Hungarian Central Bank. This option is free of charge; nevertheless the receiver bank might charge additional expenses.

4) Payment to a bank account managed in a country pursuant to a bilateral agreement:

Beneficiary living in a country pursuant to a bilateral agreement (e.g. Australia) may decide that the benefit shall be transferred by the Pension Payment Directorate to the beneficiary’s own bank account managed in that given country (i.e. in Australia) in one of the currencies vended by the Hungarian Central Bank. The transfer cost (HUF 2500 in 2017) is deducted from the Hungarian benefit and the receiver bank might charge additional expenses.

5) Payment to a bank account managed by Erste Bank Hungary:

This method corresponds to point 2) with only one difference: it is not necessary to open the bank account in person. After your request has been sent to the Pension Payment Directorate, Erste Bank Hungary contacts you directly in this regard.

Central Administration of National Pension Insurance

(Országos Nyugdíjbiztosítási Főigazgatóság)



Annex 1:

Information

on the payment methods for a beneficiary living in an EEA state (e.g. Ireland)

  • Payment to a representative who is resident in Hungary via postal address: the beneficiary may decide that his/her benefit shall be transferred by the Pension Payment Directorate to a representative who is resident in Hungary via the representative’s postal address. This option is free of charge.
  • Payment to a representative who is resident in Hungary via Hungarian bank account: the beneficiary may decide that his/her benefit shall be transferred by the Pension Payment Directorate to a representative who is resident in Hungary via the representative’s Hungarian bank account. This option is free of charge; nevertheless if the amount is transferred from here to another internal/foreign bank account, both the sender and the receiver bank might charge their expenses.
  • Payment to an own Hungarian bank account: the beneficiary may decide that the benefit shall be transferred by the Pension Payment Directorate to the beneficiary’s own Hungarian bank account. This option is free of charge; nevertheless if the amount is transferred from here to another internal/foreign bank account, both the sender and the receiver bank might charge their expenses.
  • Payment to a bank account managed in one of the EEA states: the beneficiary may decide that the benefit shall be transferred by the Pension Payment Directorate to the beneficiary’s own bank account managed in any EEA states (i.e. either in the Ireland or in another EEA state) in one of the currencies vended by the Hungarian Central Bank. This option is free of charge; nevertheless the receiver bank might charge additional expenses.
  • Payment to a bank account managed by Erste Bank Hungary: this method corresponds to the payment to a Hungarian bank account with only one difference: it is not necessary to open the Hungarian bank account in person. After your query has been sent to the Pension Payment Directorate, Erste Bank Hungary contacts you directly in this regard.

In case of any payment methods the transfer of the benefits can be chosen on a quarterly, half yearly or yearly basis posterior – if the Hungarian benefit is under the prevailing Hungarian old-age pension minimum (HUF 28 500/month in 2017).



Annex 2:

Information

on the payment methods for a beneficiary living in a country pursuant to a bilateral agreement (e.g. Australia)

  • Payment to a representative who is resident in Hungary via postal address: the beneficiary may decide that his/her benefit shall be transferred by the Pension Payment Directorate to a representative who is resident in Hungary via the representative’s postal address. This option is free of charge.
  • Payment to a representative who is resident in Hungary via Hungarian bank account: the beneficiary may decide that his/her benefit shall be transferred by the Pension Payment Directorate to a representative who is resident in Hungary via the representative’s Hungarian bank account. This option is free of charge; nevertheless if the amount is transferred from here to another internal/foreign bank account, both the sender and the receiver bank might charge their expenses.
  • Payment to an own Hungarian bank account: the beneficiary may decide that the benefit shall be transferred by the Pension Payment Directorate to the beneficiary’s own Hungarian bank account. This option is free of charge; nevertheless if the amount is transferred from here to another internal/foreign bank account, both the sender and the receiver bank might charge their expenses.
  • Payment to a bank account managed in a country pursuant to a bilateral agreement: the beneficiary living in a country pursuant to a bilateral agreement may decide that the benefit shall be transferred by the Pension Payment Directorate to the beneficiary’s own bank account managed in that given country (i.e. in Australia) in one of the currencies vended by the Hungarian Central Bank. The transfer cost (HUF 2500 in 2017) is deducted from the Hungarian benefit and the receiver bank might also charge additional expenses.
  • Payment to a bank account managed by Erste Bank Hungary: this method corresponds to the payment to a Hungarian bank account with only one difference: it is not necessary to open the Hungarian bank account in person. After your query has been sent to the Pension Payment Directorate, Erste Bank Hungary contacts you directly in this regard.

In case of any payment methods the transfer of the benefits can be chosen on a quarterly, half yearly or yearly basis posterior – if the Hungarian benefit is under the prevailing Hungarian old-age pension minimum (HUF 28 500/month in 2017).



Annex 3:

Information

on the payment methods for a beneficiary living abroad (e.g. Argentine Republic), but neither in an EEA state nor in a country pursuant to a bilateral agreement

  • Payment to a representative who is resident in Hungary via postal address: the beneficiary may decide that his/her benefit shall be transferred by the Pension Payment Directorate to a representative who is resident in Hungary via the representative’s postal address. This option is free of charge.
  • Payment to a representative who is resident in Hungary via Hungarian bank account: the beneficiary may decide that his/her benefit shall be transferred by the Pension Payment Directorate to a representative who is resident in Hungary via the representative’s Hungarian bank account. This option is free of charge; nevertheless if the amount is transferred from here to another internal/foreign bank account, both the sender and the receiver bank might charge their expenses.
  • Payment to an own Hungarian bank account: the beneficiary may decide that the benefit shall be transferred by the Pension Payment Directorate to the beneficiary’s own Hungarian bank account. This option is free of charge; nevertheless if the amount is transferred from here to another internal/foreign bank account, both the sender and the receiver bank might charge their expenses.
  • Payment to a bank account managed by Erste Bank Hungary: this method corresponds to the payment to a Hungarian bank account with only one difference: it is not necessary to open the Hungarian bank account in person. After your query has been sent to the Pension Payment Directorate, Erste Bank Hungary contacts you directly in this regard.

In case of any payment methods the transfer of the benefits can be chosen on a quarterly, half yearly or yearly basis posterior – if the Hungarian benefit is under the prevailing Hungarian old-age pension minimum (HUF 28 500/month in 2017).