Inverse remittances – Hungarian state pensioners abroad Sándor ILLÉS 1 – Éva GELLÉR - LUKÁCS 2 Abstract The international retirement migration and ageing-in-place in the country of immigration have become the global processes, but their scale cannot be compared to the international migration of the active age groups or to the numbers of internal migration fuelled by urbanisation. It is to be stressed that in the case of elderly people receiving Hungarian pension abroad we witness something different as compared to the subject matters referred to above. They dominantly represent a rather special subpopulation and in this study, we analyse the former international emigrants ageing in destination country. They receive Hungarian state pension abroad. The full scope administrative type of data mainly came from National Pension Directorate. The methods are time series analysis and cartographic visualisation. In the presentation, we investigate the volume of Hungarian state pensioner abroad, analyse the demographic and geographic composition of them for the period between 2000 and 2015. Moreover, we compare the amounts of money sent abroad (based the data of National Pension Directorate) to classic remittances to Hungary (data of Hungarian National Bank). I. Disciplinary context operated by terms in nuts-shell Pensioners abroad is a classic multidisciplinary theme: 1. Demography: - Volume and composition of stock and/or flow Mortality: ageing – longevity – selection of migrant stock in the past – selection of - migrant flow in the present Migration: Ageing-in-foreign-place (AFP, stock – international retirement migration - (IRM), flow - Fertility relevance (maybe in the past, retrospective method) - Nuptiality relevance (maybe in the past, retrospective method) - Migrant cohort effect (maybe in the past, retrospective method) 2. Geography: - Territorial distribution of stock and/or flow Spatiality of migration – direction, distance, border – utilization of spatial migratory - systems – creation of spatial mobility network – AFP fuels urbanisation but IRM counter-urbanisation 1 Director, Active Society Foundation, H-1094 Budapest, Liliom u. 8. HUNGARY, dr.illes.sandor@gmail.com 2 Senior Lecturer, Eötvös Loránd University, Faculty of Law, JOTOKI Postgraduate Law Institute, H -1053 Budapest, Egyetem tér 1 -3. HUNGARY, E-mail: drlukacseva@gmail.com 1
Space-time interrelation – generational effect - 3. Economy: Volume of inverse remittances (pensions paid abroad) – burden of state pension (pay- - as-you-go) budget – private pension (internal and or international companies) Average amount – comparison to home and host country averages - Classis remittances as basis comparison – direct capital flows (maybe irrelevant) - - Macro-, and micro-economic effects 4. Law: International portability of social security rights – internationalisation of rights gained - and paid by national level – limited transferability of social security systems - Pension rights of international migrants (AFP quasi-vulnerable group, IRM quasi- affluent group) - From articular to universal rights Relative importance of this theme is high and it is growing. Pure analytical methods are available, Group of comparisons and/or reference groups can be founded for contextualisation, conceptualisation and application- transformation from science to other spheres (politics…) Style (form): national case study, international comparative study, regional integration study (EU, NAFTA…)?, global study??. Perspective – scale: from subnational (elderly concentration in receiving country), national through international (transnational-translocal continuum?), supranational to global. What is inverse remittance? - From sending country perspective: burden (indirect capital out-flow) utilised abroad. - From the angle of receiving country? indirect capital in-flow (inward developmental source (if direction is from affluent to poor countries. - From pensioner point of view: direct income worked in the past. II. Theoretical background Elderly international migrants are a very diverse mass (Warnes 2001). Some elements of the classic theories and concepts are useful except for relate strictly to economic actives. - System theory - Network theory - Human capital concept - Life course concept - Capital (cash) flow theory - Transnational-translocal nexus III. Particular context of presentation Style (form): case study, 2
Perspective: macro, national, from a semi-rich sending country, Relative importance: moderate but it is increasing, Data: from administrative source Methods: time series analysis, cartographic visualization IV. The main text IV.1. Legal and administrative background and processes Institutional issues – reform upon 1 January 2017 There have been vast organisational reforms in the Hungarian social security system as of 1 January 2017 that marked changes in the field of old-age benefits as well. The Ministry of Human Capacities remained the competent authority for the management of the entire social protection sector including old-age benefits (plus cash family and sickness benefits, social services). The competences of the Central Administration of National Pension Insurance ( Országos Nyugdíjbiztosítási Főigazgatóság , hereinafter: ONYF), the central implementing body in the field of social protection and old-age benefits, has also been tackled by the recent reform, but its functions as the central pension insurance administration body has almost entirely been maintained. This involves the ONYF carrying out its central administrative and registry tasks relating to both national and international pension issues. Coordinative tasks stemming from the European Union (EU) social security coordination regulations are continuously completed by the ONYF being the liaison body and national designated contact point for other EEA member states (European Economic Area is consisted of the 28 EU Member States plus Norway, Iceland and Liechtenstein) and Switzerland. The latter is bound by EU law based on a bilateral agreement concluded between the EU and Switzerland in 2002. 3 Additionally, the ONYF remained responsible for coordinating issues arising from the numerous bilateral agreements related to old-age benefits. Amongst the changes it is to be highlighted that the former task of the ONYF, namely being empowered to act as second instance authority for appeals has been diminished with effect from 1 January 2017. The Municipal Government Office of Budapest has been designated as the new second instance authority having accorded nationwide competence. Usually, in the Hungarian administrative system, first instance bodies are the district offices of government offices, this is valid for applications for individual Hungarian pension claims. However, in international pension-related cases the reform has introduced exclusive competence for a designated district office, namely the 8th District Office of the Municipal Government Office of Budapest. It means that all international pension claims shall be proceeded by this institution including the establishment of the pension, issuance of certain documents and forms required by international cooperation, both with EU member states and other countries (these other foreign countries outside the EU are usually called ’third - countries’, however, in fact a better title would be ‘countries outside the EEA’). Also pension insurance-related cases of those people, who obtained pensions from Hungary but live elsewhere, is handled by the 8th District Office. These together all called international pension issues. 3 http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:22002A0430(01) Downloaded 28 September 2017. 3
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