As of January 1, 2025, the retention period for documents necessary for pension calculation will change. The purpose of the change is to reduce the administrative burden on employers.
According to Section 99/A of Act LXXXI of 1997 on Social Security Pensions (“Tny”), as effect in December 2024, employers must retain employment-related documents, data, and employment certificates containing information about the insured person’s or former insured person’s (i.e. employees and former employees) service periods or income considered for pension calculation (e.g., payroll statements or certificates issued upon termination of employment) for five years after the person reaches the applicable retirement age.
Under the amendment, the retention obligation under Section 99/A of the Tny will only apply to documents created on or before December 31, 2024. Although the legislation does not explicitly specify the retention period for documents generated after January 1, 2025, other laws may guide employers in establishing proper document retention practices. For instance, records classified as accounting documents must be retained for eight years under Act C of 2000 on Accounting. For other documents, aligning retention periods with the statutory limitation period for employment claims, typically three years, might be advisable. It is important to note that employers remain obligated to retain documents created before January 1, 2025, for five years after the insured person reaches the applicable retirement age.
Finally, do not forget to update the relevant data protection notices and adapt actual document retention practices, including archiving plans, systematic document disposal, and data deletion procedures, to comply with the changes.