The Austrian pension funds are not able to pay the pensions originally promised because the income for two decades has not been sufficient. This affects almost 150,000 pension fund recipients. Repeated pension cuts have often resulted in more than half of the original pension being lost forever. In addition to those entitled to benefits, more than 900,000 beneficiaries are also affected, who will receive significantly lower benefits when they retire.
What do the politically responsible people think?
The approaches to solving this are very different. The Chamber of Commerce and NEOS see no need for action at all and are in favor of expanding the second pillar. The known problems will therefore continue to be passed on to those entitled to them for decades to come.
Those entitled receive support from the senior citizens’ council, pensioners’ association, chamber of labor, trade unions and – as expected – in various ways from the political parties. The possible measures range from a minimum return guarantee that the AK, FPÖ, SPÖ and the Greens can imagine to additional funding obligations. There are positive signals from the ÖVP and FPÖ regarding considerations of tax cushioning in the event of losses. The AK can also imagine tax-free payment of employee contributions and a free choice of risk strategy. An overview of all measures can be found in the appendix and on the Homepage.
Demands from PEKABE
The most effective solutions for those affected are to the next federal government
- Risk sharing between beneficiaries and pension funds
- Freedom to choose an investment model and full cost transparency
- Tax measures to compensate for losses
- Payout of the cover capital at least for those entitled to benefits who have already suffered pension cuts if no other solutions are possible. In any case, this way you can counteract further foreseeable losses. This variant would be possible for everyone – pension funds, employers and the state – without any financial outlay.
Peter Weller, chairman of PEKABE:
“The pension funds are not able to close the pension gap. Valorization almost never takes place; instead, there are repeated cuts; the system has ultimately failed. Political responsibility means admitting mistakes and at the same time looking for suitable solutions. Almost 1.1 million Those who are entitled must not be left out in the cold by politicians.”
About PEKABE
PEKABE represents the interests of more than a million beneficiaries of Austrian pension funds independently and on a non-partisan basis.
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