Reform requirement in company pension schemes: How to secure your money!

Reform requirement in company pension schemes: How to secure your money!

Österreich - The need for reforms in company pension schemes in Austria is becoming increasingly urgent. Current legal regulations show serious weaknesses that require a comprehensive analysis, such as ots.at. A particularly critical point is the lack of cost transparency in the Pension Cash Act (PKG), where the costs for third parties, such as fund managers, are not specifically regulated. As a result, the necessary information is not accessible to the beneficiaries, which makes decision -making significantly more difficult.

The protection association of pension funds (Pekabe), who represents more than one million legitators, emphasizes that the performance of the Austrian pension funds is inadequate in international comparison. With 3.3 % performance, they cut off significantly worse than the international average of almost 6 %. This leads to considerable financial loss, especially with dispositions of 50,000 euros, and makes reforms essential in the investment strategy.

reform needs and participation of the social partners

Another point of criticism is the lack of integration of the Austrian Senior Council as the social partner of the pensioners. Pekabe calls for reform proposals that should also integrate the change options of the assessment strategy for beneficiaries. These options could range from dynamic to active to conservative strategies, which would be a significant improvement for the insured. The inconsistent calculation of the costs also represents a barrier for comparison between the different pension funds.

The company pension scheme in Austria is part of the so-called three-pillar model. The first pillar includes the statutory pension, the second, the company pension scheme and third parties, private pension, as bmf.gv.at. The Operating Pention Act (BPG) has been regulating the agreements between employers and employees for retirement provision since 1990, whereby claims remain preserved even after the termination of the employment relationship, provided that the venomerability period is complied with.

corporate prospects for pension scheme

The condition of the company pension scheme is also viewed critically in the economy. According to a survey by [pwc.de] (https://www.pwc.de/de/im-fokus/Accounting-rorting/betriebliche-altersorse-pension-consulting/ company-altersorse-2024.html), 41 percent of the companies surveyed have implemented a plan for company pension scheme in the past five years. Three quarters of these companies see retirement provision as a decisive incentive for existing employees and new entrances.

While 14 percent are introducing new plans for future employees, 48 ​​percent of companies emphasize their importance for potential employees. However, 75 percent of the companies express the desire for external support, in particular in the administration and payment of the company pensions, as well as for strategic advice in the field of retirement provision.

The improvements in company pension schemes are urgently needed not only to counteract the existing weaknesses, but also to meet the increasing expectations of employees. Ultimately, these measures could help increase the attractiveness of the pension funds and to strengthen the trust of the beneficiaries in old -age provision.