AUSTRIA

Earnings-related schemes with almost universal coverage for the employed

Coverage and structure

General schemes for employees (wage and salary earners; institutionally distinct, but identical provisions), public employees (civil servants only), self-employed (small business and some liberal professions) and farmers.

Special schemes for miners and notaries.

Uncovered self-employed or former employees can join a corresponding scheme on a voluntary basis.

Source of funds

Insured people: 10.25% of gross earnings.

Employer: 12.45% of payroll.

Government: Any deficit, also cost of income-tested allowance.

Contribution ceiling (25,800 Austrian schillings a month) is annually adjusted with earnings index.

Contributions are not taxed; deductible from income tax base.

Eligibility conditions

a) Old age pension

Standard pension: Age 65 (men), 60 (women); 15 years of contributions Long-service pension: Age 60 (men), 55 (women); 35 years of contributions, including 24 months in the last three years.

Early pension for long-term unemployed: Age 60 (men), 55 (women), 15 years of contribution and in receipt of unemployment benefits unemployment insurance, or sickness benefits in preceding 52 weeks.

Further early retirement programmes for special branches or arduous occupations with links to employees’ pension scheme.

b) Invalidity pension

Loss of 50% of normal earnings capacity; 5 years of contributions (6 months of contributions before age 27). c) Survivor's pension Insured must meet invalidity pension requirements (completion of qualifying period) or was pensioner at time of death. Benefit structure

a) Old age pensions

Full pension at standard retirement age is 79.5% of assessed earnings after 45 years of contributions. Assessed earnings: average (partial wage) adjusted earnings of last 10 years, or, if higher 5 years before age 45. Accrual factor: 1.9% per annum for first 30 insurance years, and 1.5% for 31-45 insurance years.

No spouse supplement, but child supplement and attendance allowance.

b) Disability pension

In principle, same as old age pension. In case of invalidity before age 50, missing contribution years are added up to this age.

c) Survivor's pension

60% of basic pension of insured, payable to widow, and phased in over next years also to widower. 24% or 36% of basic pension of insured, payable to each orphan or full orphan, respectively. Maximum survivors pension, 110% of pension of insured.