Rules of paying Health Service Contributions

In Hungary, the Social Security is a social pooling system covering the citizens of Hungary and other natural persons working in Hungary. It means that every single person who works in Hungary has to pay for taking benefits. Pursuant to the Act LXXX of 1997 on the Eligibility for Social Security Benefits and Private Pension and the Funding for These Services (hereinafter: Social Security Benefits Act or SPA) the participation in the social security system is mandatory in accordance with this law.

The article is about the inpayment of the health service contribution and what kind of documents are need to the submission via of the system of the National Tax and Customs Administration (NTCA) to take the health care benefits. At the end of the article will be listed the relevant laws and decrees.

Who is entitled to benefits?

In Hungary the mandatory pay contribution is the basis of the right to benefits. The law determines that who is eligible to take those benefits which are comprised by the law. These persons are the following:

  • Insured persons [SPA Sec. 5 (1) points a)-k)];
  • Entitlements persons (e.g.: pensioner, students, scholars of schools and education institutions, mental patients and patients treated for pathological addiction in an institution of social therapy, etc.) [SPA Sec. 15 (1) and (2) points a)-f)];
  • Persons liable to pay health service contributions in accordance with the SPA Sec. 39 (2) [SPA Sec. 16 (1) point r)];
  • Social Security Benefits Provided Under Agreement [ SPA Sec. 34 (1)-(15)].

Who has to pay for health service contribution?

The SPA determines that who is required to pay health service contributions. These person are the following:

  • Persons liable to pay health service contributions in accordance with the SPA Sec. 39 (2);
  • Private Entrepreneurs engaged in auxiliary activities;
  • Business Partnerships on any Business partner who is engaged in auxiliary activities;
  • Social Cooperatives shall pay health services contributions on behalf of their members performing work within a member’s work relationship [SPA Sec. 18 (1) point c), Sec. 19 (4) and Sec. 39/B (1)]

Who is considered to be a resident in the view of social security? What conditions are need in additional to be eligible for health contribution services?

Pursuant to the SPA Sec. 4 (1) point u) resident shall mean the following:

  • Hungarian citizens who have their address in Hungary registered in accordance with Act LXVI of 1992 on Records of the Personal Data and Addresses of Citizens, persons who have been granted immigrant or permanent resident status and persons with refugee or subsidiary protection status,
  • persons falling within the scope of the Act on Admission and Residence of Persons with the Right of Free Movement and Residence (hereinafter referred to as “persons with the right of free movement and residence”), who exercise their right of free movement and the right of residence for a period of longer than three months in the territory of Hungary, provided that they have their address registered in accordance with the Act on Keeping Records on the Personal Data and Address of Citizens, and
  • stateless persons.

It is very important for the applicant to be eligible for one of the aforementioned requirements to submit his/her submitting form.

In addition to the above-mentioned conditions, the natural person shall have registered address in the territory of Hungary prior to admission for at least one year without any interruption or in the case of stateless persons who have a residence permit, a registered habitual residence provided for in the Act on the Admission and Residence of Third-Country Nationals. The said one-year period shall include a maximum period of ninety days, during which the resident person did not have a registered address in the territory of Hungary. The state tax authority, if it has no records concerning the said one-year period, shall contact the central body operating the register of personal data and address records of citizens, or the body operating the immigration register as relating to the habitual residence, to request information as to the home address of such resident person for the purpose of determining contribution payment liability. [SPA Sec. 39 (3)]

The provision means that the particular natural person has to be a residence place or habitual residence to be determining his/her contribution payment liability.

What is the time limit in connection with the health service contribution?

A) Beginnings of the contribution payment obligation

The obligation of health service contribution shall be applied for the period beginning on the day following the day of loss of eligibility for health services and ending on the first day of the relationship that is subject to compulsory insurance. [SPA Sec. 39/A (1)]

This provisions briefly means that the natural person (applicant) fell out of the sphere of the health services and compulsory insurance entitlements, and therefore he/she has to pay health service contributions until he/she will not regain the entitlement to the health services, compulsory insurance, or those entitlements which are listed in the law.

B) Reclaim of the health service contribution paid

If the obligation of joining to insurance scheme has generated later than the health service contribution payed, the contribution paid during the life of the insurance relationship may be refunded upon request with the certificate which was issued by the employer. This certificate shall be submitted to the National Tax and Customs Administration (NTCA). [SPA Sec. 39/A (2)]

C) Enter and cancel of the health service contribution

The health care contribution payer shall notify the NTCA regarding the commencement and termination of payment obligations within 15 days. Based on this notification, the NTCA shall prescribe the monthly payment obligations for the tax year on the tax account, keep records of the payments received, and shall cancel contribution payment obligations in the case provided for in this Act or in another act. The NTCA also shall issue a tax identification code to the contribution payer who does not have one. [SPA Sec. 45/A (1)]

The contribution payer shall not be required to notify the termination of payment obligations of health service contribution (see below to the next point), if this payment obligation is terminated by entering into the insurance relationship and that was notified to the NTCA in accordance with the RTA. The national tax authority shall ex officio inform the contribution payer in connection with termination of his/her obligation to pay health service contribution. [SPA Sec. 45/A (2)]

So this provisions mean that the contribution payer has 15 day to notify (submit his/her form) the national tax and customs authority about his/her obligation of health service contribution. This is the same situation when his/her obligation of health service contribution is terminated. The Subsection (2) also describes that if the contribution payer enter into the insurance relationship, the authority will automatically inform the contribution payer, if it happens in the way as the RTA prescribe it. For instance: the employer will notify the authority about the commencement of the insurance relationship.

Relying on the notification regarding to the termination of the obligation of the health service contribution, which was sent to the national tax and customs authority, the tax authority shall supply data concerning the ceased obligation to pay health service contribution within 10 days by way of electronic means to the Health Insurance Fund. It will happen when the contribution payer notify the authority about the commencement of entering into the relationship that is subject to compulsory insurance. [SPA Sec. 45/A (2)]

D) Passive eligibility period (suspended period)

After the termination of the relationship that subject to compulsory insurance, the passive period eligibility is behooved to the insured person for a while. These conditions are regulated by the Act LXXXIII of 1997 on the Services of the Compulsory Health Insurance System (hereinafter: HIA) Sec. 29 (9).

According to the HIA Sec. 29 (9) the entitlement of a resident person provided for in the SPA to health care services in the following time periods:

a) shall remain in effect for a period of 45 days, if the eligibility criteria was satisfied without any interruption for a period of at least 45 days before the time of termination,

b) if the period of existence of the eligibility criteria was less than 45 days, entitlement to healthcare services shall be extended by that time,

c) shall remain in effect for a period of 45 days, if the eligibility criteria previous to the eligibility criteria that was terminated was satisfied without any interruption for a period of over 45 days, and the eligibility criteria that was last terminated did not prevail for a period of 45 days, however, the period between the existence of the two eligibility criteria was less than 30 days.

This provision means briefly that in spite of the ceasing of the insurance relationship of the insured person he/she will entitle to take health care services for 45 days. During this time the social security relationship shall be settled by the insured person.

Who has to pay the health service contribution?

Pursuant to the law any resident person who is not insured and is not entitled to receive health services shall be required to pay health services contributions. [SPA Sec. 39 (2)]

How much HUF health service contribution shall be paid in 2020?

THE TOTAL AMOUNT OF HEALTH SERVICE CONTRIBUTION THE DAILY AMOUNT OF HEALTH SERVICE CONTRIBUTION
7710 HUF/MONTH 257 HUF/DAY
[SPA Sec. 19 (4)]

Time period for payment of Health Service Contribution

The health service contribution shall be paid by the contribution payer: 12th of each month.

Right to Health Care Service

To be eligible for health care service, it must be comply to the particular provision of Act III of 1993 on Social Administration and the Social Service (SASA).

Pursuant to the SASA Sec. 54 (1) the district office determines the social need for the purpose of health care service to that person:

  1. in whose family, the monthly income for one person is 120% of the minimum amount of the old age pension;
  2. who lives alone and his/her income is 150% of the minimum amount of the old age pension and his/her family has no assets.

The official certification of the social need (aka. certification) is issued by the district office. The expiration period of the certification is 1 year. The certification contain the name, the address, in the case of stateless person holding habitual license, the habitual residence, social security identification code of the person in need, the fact of the social need (indigence) and expiration of the certification.

If the aforementioned conditions are still met, the certificate can be reissued. The certificate testify the social need from the date of the submission of the application. The district office keeps record about the persons in need and pursuant the separate law notify the NEAK (National Health Insurance Fund of Hungary aka. NEAK).

Briefly, pursuant to the SASA the eligibility for health care services are benefits which are belonged to the benefits in kind. This benefit provides the free use of the health care services without paying the health service contribution.

What kind of documents are need for submission?

The following documents are needed for submission:

  • identification card
  • residence card
  • passport
  • tax ID card
  • social security ID card
  • power of attorney
  • submission form 20T1011 (it shall be submitted to the national tax authority)

What changes can be waited for in the near future?

The new social security act (Act CXXII of 2019 on the Eligibility for Social Security Benefits and Private Pension) will enter into force on 1st July 2020. The changes will be described later in this year.

Who conducts the social security system?

The social security system is a multistage system. It is divided by two parts: for health insurance and the pension insurance. These parts create the whole system. This article only deals with the issues of the health insurance.

The issues of the health care and health insurance system are belonged under the control of National Health Insurance Found of Hungary (NEAK).

In countryside, the issues of the health insurances are performed by the district office by the country seat.

In Budapest, the same duties are performed by Budapest Government Office XIII. District Office (together: District Office of the Country). [Government Decree 386/2016 (2 Dec) on the Bodies of Health Insurance Sec. 1 (1) points a), b), c)]

The relevant laws and decrees

Act LXXX of 1997 on the Eligibility for Social Security Benefits and Private Pension and the Funding for These Services

Act LXXXIII of 1997 on the Services of the Compulsory Health Insurance System

Act III of 1993 on Social Administration and the Social Service

Act LXVI of 1992 on Records of the Personal Data and Addresses of Citizens

Government Decree 168/1997 (X. 6.) on implementation of Act LXXXI of 1997 on Social Security Pension Benefits

Government Decree 386/2016 (2 Dec) on the Bodies of Health Insurance

Zoltán Ferenc Samkó J.D.
Health and Sports Lawyer


The general rules of the payment notification

The present article introduces some information about the general rules of the payment notification and its enforcement during the enforcement procedures. The article is divided in two parts. The first part of the article deals with the general rules of the payment notification and the second part of the article describes those rules which are related to the enforcement of the payment notification during the enforcement proceedings.

This legal institution often emerges in the field of Labor and Employment Law. The employer usually uses the payment notification when he/she would like to enforce his/her claim relating to the employment relationship quickly, easily and efficiently against his/her employee. The article also describes those laws and decrees which create the core of the regulation of the payment notification.

Many times the parties can not be able to resolve their problems peacefully therefore it has to be need for this legal institution which gives a final solution to them. The enforcement proceedings helps the enforcement of the legitimate claim. Sometimes this legal institution can not be able to solve the problems of the parties, in this time the civil litigation will takes place. The article only discuss the rules of the payment notification and it does not deals with the possibility of the civil procedure.

If you want to know more about this legal institution and you are interested in this article, please visit to the website of HVG-ORAC or buy the relevant issue of the Jogtudományi Közlöny. Yo can find more about the article if you click on the link.

Zoltán F. Samkó J.D.
Health and Sports Lawyer

Zoltán Ferenc Samkó: Enforcement of the Payment Notification during the Enforcement proceedings – The general rules of the payment notification



About the conditions of practicing medical activity in short

The current article consists two parts. The first part of the article gives a brief outline about the conditions of practicing of family doctors (or general practitioners) and dental practitioners activities in the health care. The end of the first article comprises a short list about the most important rules which are applicable in the health care in connection with the activity of the general and dental practitioners.

The second part of the article will describes about the company formation of the family doctors (general practitioners) and the dental practitioners. The article does not discuss every single form of practicing family and dental doctors activities.

The article deals with those forms of the general practitioners activities which are emerging the most obviously in the health care. These forms are the limited partnership and limited-liable partnership.

About the forms of activity of the general and dental practice in short

To practice as a general practitioners or dental medicine doctor it is necessary to be eligible for two basic conditions. The first condition is to conclude an operating contract with the particular local (municipal) government and second condition is to have a right to practice for their activity.

In Hungary the general and dental practitioners activities can be perform in two ways:

  • it can be based on public employment relationship (public servant relationship) and
  • it can be performed based on the concluded operating contract with the local government, in the own enterprise as an entrepreneur private doctor. [Decree of Ministry for Health (MFH) 4/2000 (25 Febr) on the Activity of the General Practitioner, the Pediatrician and Dental Practitioner]

① If the doctor performs his/her activity in the public employment relationship, the Act I of 2012 on the Labor Code or Labor Code Act (LCA) and the Act XXXIII of 1992 on the Legal Status of the Public Employee’s will be applicable to his/her activity next to those laws and decrees which are related to the health care. In this legal relationship the particular doctor is an employee and he/she has an employer who employs him/her at a clinic or hospital. In the employment relationship doctor can performs easily his/her activity because he/she does not have to deals with the management and operation of the clinic or hospital and also he/she does not have to deals with the tax issues. It simply means that the doctor gets his/her after-tax wage.

② If the doctor would like to practice his/her activity as a private doctor, he/she has to conclude an operation contract with the local government and the doctor also must has the right to practice. If the above-mentioned conditions are met, the doctor has to formate and operate a business associate where he/she can performs his/her medical activity. In this legal relationship the Civil Code Act (CCA) will be applicable next to the health care related laws and decrees. If the doctor performs his/her medical activity as a private doctor, as it was mentioned, he/she operates a company (business association). He/she has no employer therefore he/she determines his/her working hours but also he/she is responsible for his/her company tax issues. Besides of this, he/she is also responsible for the management and the operation of his/her company.

The article only deals with the second option. In the primary care the general and dental practitioners can formate business associations according to the Act V of 2013 on the Civil Code (hereinafter: CCA). The most usually formatted business associations are the limited partnership (Lp.) or the limited-liable partnership (Ltd.). The second article will discuss the detailed rules of the formation of limited partnership. The rules of the formation the Ltd. will discuss in an another article.

As it was mentioned above, one of the most significant field of the Health, Medical and Pharmaceutical Law is formatting company. Without a well functioning health service provider firm, there is no any efficient health care. The family doctors and dental practitioners activities can be proceed in limited partnership and limited-liable partnership. Both type of company are popular among the doctors society.

One of the most common type of the formatted company in the health care is the limitied partnership (hereinafter: Lp.). The family doctors and the dental practitioners can operate efficiently and easily their enterprises in this type. Besides the aforementioned facts, the tax liabilities are the easiest to the doctors (e.g. tax submission, etc.) in this type of the business corporation. 

This article also gives a list about the most relevant and applicable laws and decrees which shall be applied in the health care in connection with practicing medical activity. 

The applicable laws and decrees

The general and dental practitioners activities are regulated by lots of laws and decrees. In the view of this article, it will be listed some of them which are related to the formation of limitied partnership and the acquisition of the right to practice.

  • Act V of 2013 on the Civil Code (CCA)
  • Act V of 2006 on Public Company Information, Company Registration and Winding-up Proceedings (Public Company Information, Company Registration and Winding-up proceedings Act or Company Registration Act, CRA)
  • Act I of 2012 on the Labor Code 
  • Act XXXIII of 1992 on the Legal Status of the Public Employee’s (LSPA)
  • Act II of 2000 on the Individual Medical Activity (IMAA)
  • Act CXXIII of 2015 on the Primary Health Care (PHCA)
  • Decree No. 21/2006 (V.18.) IM on Company Registration Procedures and on the Register of Companies (Company Registration Decree)
  • Act LXXXIII of 1997 on the Services of the Compulsory Health Insurance System (SCHISA)
  • Government Decree 313/2011 (23 Dec) on the Enforcement of the Act II of 2000 on the Individual Medical Activity (Medical Enforcement Decree)
  • Decree of Ministry for Health (MFH) 4/2000 (25 Febr) on the Activity of the General Practitioner, the Pediatrician and Dental Practitioner
  • Government Decree 217/1997 (1 Dec) on the Enforcement of Services of the Compulsory Health Insurance System (Medical Insurance Enforcement Decree)
  • Government Decree 385/2016 (2 Dec) on the Designation of the Performance of the Public Health Tasks of the Capital (County) and District Government Offices and the Designation of the Health Care Public Administration Body

The rules of the formation of the business associations can be found in the CCA.  The rules of the business associations form an individual part in the CCA. The rules of the limited partnership (Lp.) are placed in the chapter of the business associations and their rules can be found in a particular title.

Basically the CCA based on the dispositive regulation but quite a few of its provisions are binding rules which shall be observed by everybody. Next to the CCA, there are some other laws and decrees which were listed above and they are also applicable regarding to the operation of the medical company.

The second part of the article will discuss the rules of the formation of the limited partnership.


New Year, new tasks, new articles…

I would like to wish Happy New Year to all of my Visitors. I wish that the new year will bring us success, luck, prosperity and health. I also wish that everything will come true for everyone. Please stay with the SAMKÓ LEGAL in the year of 2020 too.

HAPPY NEW YEAR! 2020

All the best and cheers!

Zoltán Ferenc Samkó J.D.
Health and Sports Lawyer

FAIR PLAY AWARDS GALA IN THE DANUBE ARENA

It is my pleasure and I am very honored that I was invited to the Fair Play Award Gala which was held on 21th November 2019, Thursday in the Danube Arena at Budapest. The Hungarian Olympics Committee – Fair Play Committee has celebrated its 52th anniversary since its establishment. The Committee is engaged for the fair play in the sport and besides of this in the other field of the life. The first fair play awards were given in 1967 by the National Association of  Hungarian Journalists (MÚOSZ) and the Fair Play Committee established by the National Sports Office.

The aim of the Fair Play Committee is still the same, preserve the tradition of the spirit of the fair play. Therefore the Committee every year organize the Fair Play Award Gala where it rewards those chosen athletes who are worthy for the fair play award. This award ceremony was co-organized with the SPORTJUS Hungarian Association of Sports Lawyers of Hungary. It was the first time that the SPORTJUS got involved the organization of this event.

The ceremony begun with the opening speeches. Firstly Dr. Jenő Kamuti, the president of the Fair Play Committee, after that Krisztián Kulcsár, the president of the Hungarian Olympics Committee, and finally Dr. Zsigmond Nagy, the president of the SPORTJUS Hungarian Association os Sports Lawyers of Hungary kept his speech. All of them referred in their speeches the importance of the fair play. Besides of the aforementioned fact, the purity of the sport and the honesty towards to each other were highlighted in all three speech. 

I would especially refer to our president, Dr. Zsigmond Nagy speech. As our president Dr. Zsigmond Nagy cited our associations posy, ,,the sport is a fundamental human right.” Of course we are operating according to this basic principle which is marked in the Olympics Charta in its chapter of Fundamental Principles of Olympism. The original text is the following: ,,The practice of sport is a human right.” We respect the sport activity and we appreciate the others striving to live their life honestly and fairly as they also do in the sport. Dr. Zsigmond Nagy noted he hoped that this relationship between our organization and the Hungarian Olympics Committee would continue to exist in the near future.

The winners of the Fair Play Award:

The Hungarian Olympics Committee Fair Play Committee gave awards to the winners in six categories.

1. Fair Play act:

trophy: Szántói Szabó Tamás (kayak-canoe)

diploma: Sipos Árpád (teqball)

2. In the service of the sport:

trophy: Köpf Károly (sports leader)

diploma: Győr Béla (traditionalist)

3. The popularization of the Fair Play:

trophy: Füredi Marianne (journalist), Szalay Péter (journalist)

diploma: FTC ice hockey division U8-U10 age group

4. Leisure sport:

trophy: Hungarian Flying Disc Federation

5. Oeuvre:

trophy: Sziklenka László (kayak-canoe), Csányi Rajmund (gymnastics), Bérczes Edit (ultra running), Göröcs János (football)

diploma: Pajor István (ski)

6. Art/Science:

trophy: Juhász Árpád (television, traveling)

I also congratulate the winners!

Budapest, 23rd November 2019

Zoltán Ferenc Samkó, J.D.
Health and Sports Lawyer

III. Basic concepts

III.1.
The definition of personal data

Pursuant to the GDPR personal data means any information relating to an identified or identifiable natural person (‘data subject’); an identifiable natural person is one who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data, an online identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that natural person. The controller shall be fully liable for every damages that may occur to the data subject in connection with the data management. [GDPR Article 4, point 1]

III.2.
Processing of special categories of personal data 

Besides of the definition of personal data, the GDPR Article 9 gives a short list about the special categories of personal data which are revealing the follows:

  • racial or ethnic origin;
  • political opinions;
  • religious or philosophical beliefs;
  • trade union membership;

The following data also belong:

  • the processing of genetic data, biometric data for the purpose of uniquely identifying a natural person, data concerning health or data concerning a natural person’s sex life or sexual orientation shall be prohibited.
  • Processing of personal data relating to criminal convictions and offences or related security measures based on Article 6 (1) shall be carried out only under the control of official authority or when the processing is authorised by Union or Member State law providing for appropriate safeguards for the rights and freedoms of data subjects. Any comprehensive register of criminal convictions shall be kept only under the control of official authority. [GDPR Article 10]

The data management shall be progressed with caution during the processing of special categories of personal data.

The tasks of the controller and the processor are also especially the record of the data, the enumeration of the processed data, the safety data storage, and if it necessary, performing the impact assessment.

III.3.
The data subject (patient/patients)

The most important task and aim is the protection of the patients. It ensures their data shall be processed appropriately and the unauthorized person does not have access to these data.

Pursuant to the GDPR Article 4 data subject shall mean a natural person who has been identified or is identifiable by reference to any information. The legal persons data shall be not protected by the data protection regulation.

III.4.
Controller

Controller means the natural or legal person, public authority, agency or other body which, alone or jointly with others, determines the purposes and means of the processing of personal data; where the purposes and means of such processing are determined by Union or Member State law, the controller or the specific criteria for its nomination may be provided for by Union or Member State law. [GDPR Article 4, point 7]

III.5.
Processing

Processing means any operation or set of operations which is performed on personal data or on sets of personal data, whether or not by automated means, such as collection, recording, organisation, structuring, storage, adaptation or alteration, retrieval, consultation, use, disclosure by transmission, dissemination or otherwise making available, alignment or combination, restriction, erasure or destruction. [GDPR Article 4, point 2]

Where two or more controllers jointly determine the purposes and means of processing, they shall be joint controllers. They shall in a transparent manner determine their respective responsibilities for compliance with the obligations under this Regulation, in particular as regards the exercising of the rights of the data subject and their respective duties to provide the information referred to in Articles 13 and 14, by means of an arrangement between them unless, and in so far as, the respective responsibilities of the controllers are determined by Union or Member State law to which the controllers are subject. The arrangement may designate a contact point for data subjects. [GDPR Article 26]

III.6.
Restriction of processing

Restriction of processing means the marking of stored personal data with the aim of limiting their processing in the future. [GDPR Article 4, point 3]

During the data management, it can be occurred that the data process shall be restricted by the controller because of the request of the data subject.

III.7.
Processor

The processor assists for the controller work. It is worth to notice in connection with the data processing that the processor has not got individual decision-making power and the right to dispose. The processor does his/her work following the instructions of the controller. Data processor shall mean a natural or legal person or unincorporated organization that is engaged in processing operations within the framework of and under the conditions set out by law or binding legislation of the European Union, acting on the controller’s behalf or following the controller’s instructions. The Info Act Sec. 25/C states that where processing is carried out by a person or body, such processors must be able to provide sufficient guarantees to implement appropriate technical and organizational measures in such a manner to ensure the lawfulness of data processing and the protection of the rights of the data subject. Before the commencement of processing the data processor shall provide proof to the data controller of having such guarantees. Pursuant to the Info Act Sec. 25/D (3) point a) the data processor acts only on instructions from the controller made out in writing. Relating to the Info Act 25/D (3) point c) the processor assists the data controller by any appropriate means to ensure compliance with the provisions on the data subject’s rights. Basically this means that the processor assists the data controller’s work with auxiliary technical activities. These activities can be the followings for instance: collecting or transmission. [GDPR Article 4, point 8 with Info Act Sec. 25/C and Sec. 25/D (3) points a), c)]

III.8.
Recipient

Recipient means a natural or legal person, public authority, agency or another body, to which the personal data are disclosed, whether a third party or not. All person shall be regarded as recipient, who get the data for any purpose. [GDPR Article 4, point 9]

III.9.
The consent of the data subject (patient)

Consent of the data subject means any freely given, specific, informed and unambiguous indication of the data subject’s wishes by which he or she, by a statement or by a clear affirmative action, signifies agreement to the processing of personal data relating to him or her. [GDPR Article 4, point 11]

III.10.
Supervisory authority

In Hungary, the National Authority for Data Protection and Freedom of Information (NAIH) is responsible for carrying out supervisory and official tasks. The NAIH safeguards the security of the data, enforces the data protection laws, responsible for the appropriate functioning of the data protection and enforce the application of the GDPR and Info Act. Draws the attention of the controller and processor to their obligations and inform the affected persons to their rights. Besides this, the NAIH conducts the official investigation and keep inner records. [GDPR Article 4, and 51]

III.11.
Personal data breach

Personal data breach means a breach of security leading to the accidental or unlawful destruction, loss, alteration, unauthorised disclosure of, or access to, personal data transmitted, stored or otherwise processed. [GDPR Article 4, point 12]

III.12.
Genetic data

Genetic data means personal data relating to the inherited or acquired genetic characteristics of a natural person which give unique information about the physiology or the health of that natural person and which result, in particular, from an analysis of a biological sample from the natural person in question. [GDPR Article 4, point 13]

III.13.
Biometric data

Biometric data means personal data resulting from specific technical processing relating to the physical, physio­logical or behavioral characteristics of a natural person, which allow or confirm the unique identification of that natural person, such as facial images or dactyloscopic data. [GDPR Article 4, point 14]

III.14.
Data concerning health

Data concerning health means personal data related to the physical or mental health of a natural person, including the provision of health care services, which reveal information about his or her health status. [GDPR Article 4, point 15]

III.15.
Psychological secret

The Ethics Code of the Psychologists (ECP) point 5.1. describes the concept of the psychological secret. The psychologists are burdened by the obligation of the psychological secret relating to every single psychological and personal data which came to his/her attention. The ECP states that the psychologist may only inform these data to an authorized person and he/she shall be obligated to handle the data confidentially. Besides the above-mentioned and described obligations, the ECP prescribes that the psychologists obligation of confidentiality still exist after the end of his/her relationship with client.

Pursuant the ECP point 5.1.1. psychologists secrets shall include all psychological and personal data which obtained in the course of their professional activities, as well as other data relating to the treatment that is required, ongoing or completed, and which is known in connection with the treatment regardless he/she has known these data with written or oral communication or during any other psychological care. [Ethics Code of the Psychologists point 5, 5.1, 5.1.1]

It important to notice that, in addition to the notion of the psychological data, the ECP use the term of the personal identification data in the concept of psychological secret. It can be said that the sphere of the processed data was narrowed, (specified) to the particular data, like as the personal identification data.

In the interpretation of the ECP, it can be preposterous because during the psychological care, not only the psychological and personal data will be recorded  but also the physical, physiological or intellectual data which can be connected to the patients psychological status. It would be better the use of the concept of personal data. This concept gives a wider sphere of the data to be stored. To avoid the confusion, the sphere of the personal identification data like as the name, residence, the dwelling place, the social security number, etc. should be mentioned as an example in the concept of personal data.

III.16
Psychological data

Pursuant to the ECP point 5.1.2. psychological data in particular are the follows: those data which are related to the data subject’s mental and psychical state, the behavior, the data which are also related to performing adoptive parenting, foster parents, guardian tasks, or those data which are related to exclusion the ability of performing the above-mentioned tasks, or aptitude or its exclusion or those data which are related to pathological passion, detected, examined, measured, mapped and derived data furthermore those data which can be related to the previous ones and also those data which influence the previous mentioned data. [Ethics Code of the Psychologists point 5.1.2]

During the psychological cares, the psychologist must ensure the right process, storage and protect of the patient’s personal data. Formerly it shall be applied the Act LXIII of 1992 on the Protection of Personal Data and the Disclosure of Information of Public Interest. By making the Info Act the aforementioned act was repealed. In the health care from 25th May 2018 besides the Info Act, the GDPR is applicable primary in Hungary.

III.17.
Medical confidentiality

The HCA (Act CLIV of 1997 on the Health Care; Health Care Act) Sec. 25 (1)-(7) regulate the legal institution of the medical confidentiality. According to the Commentary, the rule of the medical confidentiality shall not only applied to the doctors but also to every single health care provider. The medical confidentiality include the patients all personal data, within is this particularly their health care data which are related to their health status and which are come to the knowledge of those persons who are involved in the health care during the patients treatment. The patients have the rights that these data, particularly those data which are related to their health status shall be communicated only to the authorized persons and these data shall be processed confidentially by those persons who are involved in the health care. All of these data are called uniformly medical confidentiality by the Health Law and the Medical Science. [HCA Sec. 25 (1); Commentary on the Health Care Act]

It is worth to note that the HCA also use the concept of personal identification data. In itself this is not a problem but it would be better to use the notion of personal data in the introduction of this chapter of HCA because this concept include a wider sphere of the patient health data. All in all it can bear on more report content than the previous notion.

III.18.
Enterprise, group of undertakings, supervisory authority

The GDPR determines the concept of enterprise in the following way: it is a natural or legal person engaged in an economic activity, irrespective of its legal form, including partnerships or associations regularly engaged in an economic activity. [GDPR Article 4, point 18]

The GDPR determines the concept of group of undertakings in the following way: it means a controlling undertaking and its controlled undertakings. [GDPR Article 4, point 19]

According to the GDPR the supervisory authority is an independent public authority to be responsible for monitoring the application of this Regulation, in order to protect the fundamental rights and freedoms of natural persons in relation to processing and to facilitate the free flow of personal data within the Union. The public authorities are provided by the member States of the European Union. [GDPR Article 4, point 21 and Article 51 (1)]

III.19.
Right to information

Although the right to information is one of the patients fundamental rights during the treatment, it is still closely connected to the data management. Namely during the treatment the patient, the doctor and the health care provider exchange the information between each other. The patient asks questions to the doctor in relation with his/her health status or the treatment and the doctor answer them in connection with the aforementioned questions. Pursuant to the HCA the patient has the right to get detailed information about his/her health status, the treatments (interventions), planned schedule, the decision-making power related to the treatments, the possible alternative procedures, the methods, the process and outcome of the treatment, about the further treatments and the recommended lifestyle. Furthermore, the patient has the right to asks questions or get to know about his/her results of the performed health treatments and interventions, their failure and their different results and their reasons. The patient also has the right to get to know those doctors and persons name, qualification with their position who were contributed during the patient treatment. Here also belongs the consent based on information because the patient may only agree to the treatment if he/she has the proper information. The conditions required for information are provided by the health care provider. If the patient speaks in foreign language, he/she has a right to use the help of interpreter. Before the treatment, the doctor must inform the patient about the costs and fees of the treatment if the patient health status makes it possible. [HCA Sec. 13 (1)-(9)]

III.20.
The right to information of the health document

The patient has the right to get to know about his/her health document with its content like as the data related to his/her health treatments. The patient may make extract and copy about these documents. The patient also has a right to get the medical report or a written summarized opinion about his/her health status. The patient entitled to choose the authorized person who has the right to look into the documents behalf of him/her. [HCA Sec. 24 (1)-(13)]

The aforementioned list is not complete. It solely describes the basic concepts which occur during the health data management based on the GDPR, the Info Act and the Health Care Act. The concepts which were missed out from the GDPR are the following: main establishment, representative, binding corporate rules, supervisory authority concerned, cross-border processing, relevant and reasoned objection, information society service, international organisation, third party, filing system, profiling, pseudonymisation. The missed concepts will be discussed in separate articles, if it necessary.

The third part of the article will discuss the legal base of the health data management and the prevailing basic principles which occur during the data management.

REGISTRATION FOR THE PUBLIC HEARING

On Friday 15th November 2019 will be held the public hearing of Sun Yang at the Court of Arbitration for Sport (CAS) in Lausanne, Switzerland. As it is known for everyone, the World Anti-Doping Agency (WADA) filed its appeal against the Chinese swimmer Sun Yang and the Fédération Internationale de Natation (FINA).

According to the appeal Sun Yang was participated in the out of competition test where he and his security guard smashed the sealed vial containing the swimmer blood sample with a hammer. The FINA has exempted Sun Yang in its resolution, therefore the WADA filed its appeal against the FINA resolution.

The CAS has approved the request of the parties about holding a public hearing in this case. There is a second time in the history of the CAS a public hearing will be held in Lausanne, Switzerland. The CAS has exclusive jurisdiction in this case to judge the appeal. The public hearing will takes place in the hearing room, where the representatives of the media can represent themselves.

The whole public hearing about this case can also be followed on the CAS’s official website. Here is some information about the registration for the public  viewing area.

You should scroll down below of the article. The source of the bulletin is the official website of  CAS. The bulletin can be available in English.

Budapest, 5th November 2019

Zoltán Ferenc Samkó, J.D.
Health and Sports Lawyer


The Court of Arbitration for Sport (CAS or Tribunal Arbitral du Sport) has announced that the hearing of Sun Yang will be held in public on 15 November 2019. The hearing will takes place at the Conference Centre of the Fairmont Le Montreux Palace in Montreux/Switzerland.

As it is well-known Sun Yang violated the doping rule of WADA. Therefore WADA filed a lawsuit against him and FINA. The hearing can be followed via live stream on the website of the CAS.

If you are interested in details, please read the attached documents about the hearing or visit CAS website.

Budapest, 16 October 2019

Zoltán F. Samkó J.D.
Sports Lawyer

Source: pexels.com


The enforcement of the claim of orphan’s benefits.

Pursuant to the SSPA Sec. 64 (1) applications for pension benefits shall be submitted in writing, using the prescribed form or standard electronic form (hereinafter referred to as proof of claim form). This action constitutes as an application under the Act CL of 2016 on General Public Administration Procedures (hereinafter: GPAP) Sec. 35 (1). The entitlement of pension benefits is related to the person of the rightholder, therefore it can not be enforced by nobody nor the successor and the spouse. Procedures relating to the enforcement of claims for benefits available under the social security system and other proceedings under this Act shall be exempt from duties and charges. It shall mean that the conducting of the procedure which is regulated in the Act XCIII of 1990 on the Duties (hereinafter: Duties Act) can be initiated without any obligation of paying duties.

The proof of claim form can be downloaded from the website of Hungarian State Treasury, under the code number K11.

Pursuant to SSPA Sec. 64. (2) Claims may be enforced retroactively for maximum 6 months, meaning that benefits may be established – if all conditions for entitlement are satisfied – as of the first day of the sixth month preceding the date of filing the proof of claim. The claim shall be adjudged according to the legal regulations in force on the date of commencement of benefits.

It shall be attached to the proof of claim form:

  • the death certificate of the deceased rightholder or the court ruling declaring the rightholder dead or missing;
  • the fully enforceable acknowledgement of paternity by the guardian authority (it can be any government office or district office);
  • the birth certificate of the pension claimant;
  • the certificate of the service time by the employer (it shall mean that certification which is issued by the employer to certify the existence of employment relationship. It also certify the time when the employee was in the employment relationship with the employer and out of his/her wages the pension contributions were paid by the employer.);
  • In case of private entrepreneurship, those certifications which are available on the register of pension insurance administration agencies (These can be queried from the customer site ,,Ügyfélkapu”.);
Source: pexel.com

It shall be considered as service time the period of the insurance relationship after 31th December 1997. Furthermore pursuant to the Government Decree 168/1997 (X.6.) Korm. on implementation of Act LXXXI of 1997 on Social Security Pension Benefits Sec. 29 (1) the employment, public and civil servant relationships, service relationships, periods of studies in vocational training schools under scholarship or apprenticeship agreement are considered as service time too.

Pursuant to the Government Decree 168/1997 (X.6.) Korm. on implementation of Act LXXXI of 1997 on Social Security Pension Benefits Sec. 32 (1) it also shall be taken account as service time the following elements down below.

(1) The following periods shall be recognized as service time:

a) when receiving sick-pay (benefits while on sick leave), benefits for accident-related injuries or compensation aid, pregnancy-maternity benefits, medical treatment allowance, temporary invalidity benefits and temporary invalidity allowance;

b) when on maternity leave; and

c) when receiving child-care benefits or child-care allowance.

(2) Service time shall also include periods of hospitalization if admitted during the service time or within thirty days subsequently. One year additional service time (two years in connection with tuberculosis) may be recognized on the grounds of hospitalization after the insurance was terminated or after any other service time acquired on other grounds.

It must also be attached:

  • those judicial decisions which were made within 6 months in case of the orphan’s up to 50 percent disability or rehabilitation benefit in connection with his/her health status. In lack of this, the orphan’s documents which are related to the health status of the orphan, if the orphan requesting orphan’s benefits relating to he/she is a person with reduced ability to work.
  • the school attendance certification in case of the orphan’s over sixteen years of age.

The proof of claim is valid with signature only, in lack of this, it will not be considered.

The place of the filing of the proof of claim.

Source: pexel.com

As of 1 November 2017, the Central Administration of National Pension Insurance (ONYF) merged into the Hungarian State Treasury (MÁK). The proof of claim shall be submitted or sent to the competent Pension Payment Directorate of the Hungarian National Treasury or pension insurance administration agencies of the claimant’s (applicant’s) place of residence.

The pension insurance administration agencies.

The Government Decree 168/1997 (X.6.) Korm. on implementation of Act LXXXI of 1997 on Social Security Pension Benefits Sec. 1 lists the pension insurance administration agencies:

(1) The Government appoints the following bodies to function as pension insurance administration agencies:

a) the district (Budapest district) offices provided for in Annex 1 of Budapest and county government agencies (hereinafter referred to as “district office”);

b) Budapest and county government agencies, with the exception of the Pest County Government Agency (hereinafter referred to as “government agency”);

c) the Magyar Államkincstár (Hungarian State Treasury) (hereinafter referred to as “Treasury”) Nyugdíjfolyósító Igazgatóság (Pension Payment Directorate) (hereinafter referred to as “Pension Payment Directorate”);

d) the central body of the Treasury (hereinafter referred to as “Head Office”).

(2) The Government appoints the Pension Payment Administration to function as the pension pay-out agency.

(3) The Government delegates the Head Office to function as the central pension insurance agency.

According to the Government Decree 168/1997 (X.6.) Korm. on implementation of Act LXXXI of 1997 on Social Security Pension Benefits Sec. 2 (1) the district offices shall function as a general pension assessment bodies. Unless otherwise provided for by law, the competence of general pension assessment bodies shall cover the areas specified in Annex 1.

District VIII Branch of the Government Agency of the City of Budapest acting as the general pension assessment body for the City of Budapest and the County of Pest, responsible for the City of Budapest and the County of Pest.

Annexes related to the proof of claimant.

The Annex 3 of the Government Decree 168/1997 (X.6.) Korm. on implementation of Act LXXXI of 1997 on Social Security Pension Benefits comprise the applicable percentage of calculating for dependent’s benefits the dependent’s benefits.

The Annex 4 of the Government Decree 168/1997 (X.6.) Korm. on implementation of Act LXXXI of 1997 on Social Security Pension Benefits comprise the rules which are related to the data content of the form of the claim.

The current jurisdiction.

Unified Judicial Decision No. 2011. 2354 The claim of pension will not be expired, the lost of the right to the claim is not the legal consequence of the  late enforcement nor the service dependent’s (retirement) benefits.

Curia Decision No. Mfv. 10.789/2016/14. The determining of six month retrospective claim for benefits shall be applicable only, if the claimant make statement relating to this during the official procedure.

Metropolitan Administrative and Labor Court Decision No. M.662/2012/8. During the started lawsuit against the administrative decision (resolution) on the dependent’s benefits establishes the judgement of the court, if the essential ascertainment’s of the forensic medical expert’s reports are in correspondence with each other during the official procedure.

Metropolitan Administrative and Labor Court Decision No. M.408/2011/15. If the view of point of the forensic (medical) expert diverge well reasonable from the expert’s opinion which were made in the official procedure, the secondment of the newer expert is unnecessary (for example: it is accurately marked that which disease was not taken into account during the official procedure).

Here is some information about the reorganization of the Hungarian social security system. This document was made by the Hungarian State Treasury.

Sources.

Commentary on Act LXXXI of 1997 on Social Security Pension Benefits, Edited by Áron Pánczél. Budapest, Wolters Kluwer (Nagykommentár a társadalombiztosítási nyugellátásról szóló 1997. évi LXXXI. törvényhez – Szerkesztette: Pánczél Áron. Budapest, Wolters Kluwer – Jogtár)

Act LXXXI of 1997 on Social Security Pension Benefits

Act LXXX of 1997 on the Eligibility for Social Security Benefits and Private Pensions and the Funding of These Services

Act CL of 2016 on General Public Administration Procedures

Government Decree 168/1997 (X.6.) Korm. on implementation of Act LXXXI of 1997 on Social Security Pension Benefits

This article is written about a particular kind of dependent’s benefits, the orphan’s benefits. This legal institution is very special, therefore it is regulated by more laws and decrees.

The article consists of two parts: the first parts contains the basic notions and the features of the orphan’s benefits. The second parts discuss the enforcement of claims of the orphan’s benefits and its procedural regulations.

Some current judicial practices were listed at the end of both parts of the article in connection with this topic.

The concepts of dependent benefits.

The dependent benefits shall mean regular payments of money calculated upon the income of the insured person (formerly insured person), or his relative, consistent with his service time.

The dependent’s benefits are provided to the insured person under the frame of the social security pension system.

The service time.

The concept of the service time is determined by the Act LXXXI of 1997 on Social Security Pension Benefits (hereinafter: Social Security Pension Benefits Act or SSPA) Sec. 4 (1) point h).

According to the SSPA Sec 4 (1) point h) service time shall mean the periods when the insured person was required to pay pension contributions, or paid pension contributions under a voluntary arrangement. The periods of service time free from any obligation of payment of pension contributions shall be laid down in specific other legislation.

The family member required and capable to provide maintenance.

According to the SSPA Sec 4 (1) point i) the family member required and capable to provide maintenance shall mean a person legally required to provide maintenance to an orphan’s pension creditor and/or a parent’s benefit creditor – consistent with the chain of maintenance obligation – before the deceased rightholder 

ia) who was ordered by court to provide maintenance to the orphan’s pension creditor and/or the parent’s benefit creditor as due, or 

ib) whose per capita income in the family exceeds two and a half times the mandatory minimum amount of full old-age pension benefits according to Act III of 1993 on Social Administration and Social Welfare Benefits, except if not required – by decision of the court – to provide maintenance to the orphan’s pension creditor and/or parent’s benefit creditor, with the proviso that a person whose whereabouts is unknown shall be considered incapable to provide maintenance; 

The concepts of orphan’s pension.

Pursuant to the SSPA Sec. 4 (1) point f) orphan’s pension shall mean the benefits paid to the children or adopted children of a deceased pensioner or of a person with pension rights who does not receive pension, or to their foster children, brothers and sisters or grandchildren subject to specific conditions.

The SPA Sec. 6 (2) list kinds of dependent’s benefits which are provided under the frame of the social security pension system. These are the follows:

a) widow’s pension;

b) orphan’s pension;

c) parent’s benefits;

d) accident-related dependent’s benefits;

e) widow’s benefits.

The requirements of entitlement.

The requirements of entitlement of the dependent’s benefits are regulated by the SSPA Sec. 46, Sec. 54 (1)-(3) and Sec. 55 (1)-(5).

Regarding to the entitlement, the SSPA Sec. 54 (1) refers to the contents of the SSPA Sec. 46. Pursuant to this provision, orphan’s pension shall be available to any children – born in wedlock or in a domestic partnership and raised together in the same household -, whose parent satisfies the requirements set out in Section 46 applicable to the deceased spouse.

The SSPA Sec. 46 ascertains the following:

(1) Widow’s pension shall be available to a person whose spouse died while drawing old-age pension or whose spouse died: 

a) before reaching 22 years of age and 

aa) who obtained service time within 180 days upon the conclusion of his/her studies, or 

ab) a total of at least 2 years of service time; 

b) after reaching 22 and before reaching 25 years of age, and acquired at least 4 years of service time; 

c) after reaching 25 and before reaching 30 years of age, and acquired at least 6 years of service time; 

d) after reaching 30 and before reaching 35 years of age, and acquired at least 8 years of service time; 

e) after reaching 35 and before reaching 45 years of age, and acquired at least 10 years of service time; 

f) after reaching 45 years of age, and acquired at least 15 years of service time.

(2) Furthermore, any person whose spouse did not acquire the service time prescribed in Subsection (1) shall be entitled to widow’s pension if his/her spouse acquired to service time prescribed for the lower age group and if his/her service time is not interrupted subsequently for any period of thirty days of more until the time of his/her death. This thirty-day period shall not include any period of incapacity to work. 

According to the SSPA Sec. 46 (3) the following periods shall be acknowledged as service time for the purpose of eligibility for widow’s pension: the period during which the deceased rightholder had been drawing invalidity benefits, accident-related disability benefits or invalidity allowance.

Pursuant to the SSPA Sec. 54 (2), orphan’s pension shall not be available to an adopted child by way of his/her biological parent, except if the child was adopted by the spouse of his/her biological parent. The Subsection 3 states that, orphan’s pension shall be available to a brother or sister, or a grandchild (including great-grandchildren and great-great-grandchildren) if he/she was supported by the deceased person in his own home, and if the child does not have any relative who is able and willing to support him/her.

By the way it is good to know that the Payment of orphan’s pension to the children referred to in Subsection (3) of Section 54 of the SSPA shall be suspended – from the first day of the month following the date of delivery of the relevant resolution of the first instance – if the relative liable to provide support becomes able to support them. [Government Decree 168/1997 (X.6.) Korm. on implementation of Act LXXXI of 1997 on Social Security Pension Benefits Sec. 64 (1)]

Source: pexel.com

The period (availability) of orphan’s benefits.

The period (availability) is determined by the SSPA Sec. 55 (1)-(5).

Orphan’s pension shall be available – if the conditions for entitlement are satisfied – as of the day of the death of the deceased person until the child’s sixteenth birthday.

If the child is pursuing a full-time course of study or participates in full-time education and training in a higher education institution, orphan’s pension shall be provided for the duration of studies, up to the child’s twenty-fifth birthday. If the child’s ability to work has diminished within the period of entitlement, orphan’s pension shall be provided for these periods independent of age.

It is very important if the orphan is older than twenty-five years old at the death of the person referred to in Section 54, the orphan’s benefit can not be granted for him/her. The earlier granted benefit – depending on the full-time course of study – will ceased. There is a an exception when the orphan is supported in orphan’s pension and he/she was a person with reduced ability to work at the time when he/she 25 years old.

In this case the orphan will be supported with the orphan’s benefit until he/she is qualified as a person with reduced ability to work. It is very important to know that if the orphan’s benefit is terminated due to health improvement, it can not be determined above the age of 25 again even though if the orphans health begins to deteriorate later.

The Head Office (the central body of the Hungarian State Treasury; hereinafter: Treasury) can ascertain special benefit in exceptional case, equity if the orphan at the death of deceased rightholder, is older than the age of 25 and he/she is pursuing a full-time course of study or participates in full-time education and training. The Head Office also extend the right to special orphan’s benefits in its power of equity regarding to the former death of deceased rightholder and the studies of the child, if the entitlement of him/her was existed before the age of 25 of the orphan.

If the child’s ability to work has diminished within the period of entitlement, orphan’s pension shall be provided for these period independent of age.

The child or his/her parent’s marriage shall have no bearing on entitlement to orphan’s pension, nor if the child is adopted.

On the grounds of schooling entitlement to orphan’s pension shall be granted to a child who: 

  • pursues studies as a student with individual study arrangement due to an illness or physical or mental handicap, pregnancy, childbirth or to caring for his or her child under 3 years of age; 
  • is below the age of 25 and pursues studies within the framework of adult education, provided that such adult education is provided by means other than distance education, and the weekly number of classes reaches seven in the average.

It is very important to note that on the grounds of schooling, orphan’s pension shall be granted until the end of the last month of studies, including the period of summer school-break as well. The legislator intends to use this rules to help the parent and the child in need of care in the same household making the coverage of child-raising costs easier during the child studies.

The SSPA also includes those rules which are in connection with the orphan studies. This rules describes the verification process of the entitlement of orphan’s benefits in connection with the orphans studies.

In connection with orphans studying in Hungary, the body operating the public education information system or the higher education information system shall verify the commencement and existence of the student relationship and the estimated time for the conclusion of studies at the request of the pension insurance administration agency, and shall ex officio verify the suspension or termination of student relationship, indicating the student’s name and social security identification code and the length of the time of suspension or termination. So, in this case, the claimant (applicant) has no individual action.

In the case of orphans studying abroad, school attendance shall be verified once a year if attending a secondary school and semi-annually if attending an institution of higher learning within one month from the date of commencement of studies.

Where the studies of a student of a secondary school or institution of higher education are suspended due to the student’s illness or giving birth to a child, this shall have no bearing on entitlement to orphan’s pension.

Source: pexel.com

The amount of benefits.

The amount of the orphan’s benefits are determined by the SSPA Sec. 56 (1)-(4).

Orphan’s pension shall be thirty per cent per child of the old-age pension benefits to which the deceased person had been or should have been entitled at the time of his/her death. The Government Decree 168/1997 (X.6.) Korm. on implementation of Act LXXXI of 1997 on Social Security Pension Benefits Sec. 64/D states the following: the mandatory minimum amount of orphan’s pension assessed for periods between 31 December 2007 and 1 January 2020 shall be 24,250 forints per month.

Pursuant to the SSPA Sec. 59 if there are several orphan’s, they each receive the amount due under the law. In contrary with the widow’s pension, the orphan’s benefit will not be shared. [SSPA Sec. 51, 59]

Summarize the above-mentioned facts, the mandatory minimum amount of orphan’s pension shall be thirty per cent per child of the old-age pension benefits but at least the aforementioned 24,250 forints per month.

Sixty per cent of the pension and benefits referred to in Subsection (1) shall be paid as orphan’s pension to a child: 

a) if both parents have died,

b) whose parent’s ability to work has diminished.

If a child is entitled to orphan’s pension in connection with both parents, the orphan’s pension that is more favorable shall be paid.

Person with reduced ability to work.

Pursuant to the SSPA Sec. 4 (1) point k) person with reduced ability to work shall mean a person whose health had deteriorated by up to 50 per cent. The rules of person with reduced ability to work are determined by the Act on the Benefits Provided to Workers with Disabilities and on the Amendment of Certain Acts (Act CXCI of 2011).

The current jurisdiction.

Judicial Decision No. 17/2000. (V.26.) It is not unconstitutional that the entitlement of the orphan’s benefit is bound to the service time. On the one hand the State is not obligated to provide solution of social security for every single life situation. The Social Security Pension System is only one of the type of the subsistence benefits. On the other hand the orphan’s benefit is ground on the entitlement to old-age pension of the deceased rightholder, it depends on, therefore the orphan’s of those who acquired the necessary service time and those without it, can not be taken account to be a homogeneous group. So, it can not to be talked about discrimination too. 

Decision No. 867/B/1997. (Constitutional Court) It is not unconstitutional that the orphan’s benefit – if the orphan is not a person with reduced ability to work – will terminated at the age of 25 because the provisions of child protection constitutional proclamation does not create individual entitlement.

Judicial Decision No. 2004. 1065. There is no orphan’s benefit for person with reduced ability to work, if he/she is older than the age of 25 at the time of death of the rightholder.

Metropolitan Administrative and Labor Court Decision M.3325/2006/10. It is not chargeable taking the orphan’s benefit for the orphan, if he/she can verify that he/she made the notification and even so the Nyufig (Pension Payment Directorate) has not terminated the transfer.

Sources.

Commentary on Act LXXXI of 1997 on Social Security Pension Benefits, Edited by Áron Pánczél. Budapest, Wolters Kluwer (Nagykommentár a társadalombiztosítási nyugellátásról szóló 1997. évi LXXXI. törvényhez – Szerkesztette: Pánczél Áron. Budapest, Wolters Kluwer – Jogtár)

Act LXXXI of 1997 on Social Security Pension Benefits

Act LXXX of 1997 on the Eligibility for Social Security Benefits and Private Pensions and the Funding of These Services

Act CL of 2016 on General Public Administration Procedures

Government Decree 168/1997 (X.6.) Korm. on implementation of Act LXXXI of 1997 on Social Security Pension Benefits