Criticism Surrounding Changes in Pensions

After just one week, the review of the first changes in the pension area ended on Friday. Among other things, the retirement age and the necessary insurance years for the corridor pension are being raised. There is criticism of the review period - it should generally last six weeks, according to the constitutional service. Institutions are also concerned about people who have already made arrangements and are now confronted with new rules.

63 Instead of 62 Years for Corridor Pension

From January 1, 2026, the earliest possible retirement age for the corridor pension will gradually be raised from 62 to 63 years, and the necessary insurance years from 40 to 42. In quarterly steps, the values will increase by two months until the target is reached. From 2029, the savings are expected to amount to one billion euros per year. There is also a change in the first pension adjustment: from 2026, it should be 50 percent regardless of the month of retirement.

In general, there is understanding regarding the necessity of the measures: For example, the Chamber of Labour (AK) points out in its statement that "all population groups must contribute to the necessary savings potential." However, it misses employment policy accompanying measures, without which the changes in the corridor pension would lead to unemployment in many cases.

Criticism is not spared elsewhere either: Regarding the corridor pension, the constitutional service in the Federal Chancellery sees an interference with the protection of trust. It recommends documenting the necessity of the savings and quickly passing the amendment. This is to ensure that the interference does not occur "disproportionately suddenly" and that it can be assumed "that those affected have not yet made any - especially financial - arrangements that would be disproportionately disadvantaged by the norms coming into effect."

Impact on AMS Registrations?

Similar concerns are shared by the Public Service Union (GÖD), the Chamber of Labor, and the state of Burgenland. Many have planned their lives based on the current rules - "particularly on the possibility of entering the corridor pension upon reaching the age of 62 and after fulfilling the required insurance periods," according to the GÖD's statement. Those affected might then be forced to register with the AMS for a few months and claim financial benefits - "at the expense of the budget," the Chamber of Labor points out.

"We understand that the budget needs to be consolidated, but if possible, not at the expense of women, who are often confronted with double and triple burdens in their lives," criticizes the Women's Ring. With the gradual increase of their retirement age to 65, they are already making a "significant contribution to the pension system." Women might not be able to achieve the necessary insurance years for the corridor pension due to gaps in their insurance history, argue both the Women's Ring and the Chamber of Labor, as well as the Trade Union Federation (ÖGB).

For those part-time retirement agreements that became effective before April 1, there should be no increase in the retirement age for the corridor pension. The Chamber of Tax Advisors and Auditors fears problems in cases where agreements effective after April 1 were made in March or April in reliance on the validity of the current legal situation. The ÖGB criticizes that the exception should not apply to models of company part-time retirement. Neither the Constitutional Service nor the ÖGB can understand why April 1, 2025, was chosen as the cut-off date.

The 50 percent pension adjustment in the first year is incomprehensible to the Senior Citizens' Council: Employees who take up employment can "naturally expect to receive the full collective agreement increase in the following year. It is not understandable why this should be different for pension adjustments." The ÖGB, GÖD, Senior Citizens' Council, and Chamber of Labor are also puzzled by the fact that the suspension of proration in 2025 is now being reversed - the full adjustment was supposed to apply in 2026. The GÖD, for example, demands that the 50 percent adjustment should only take effect in 2027.

IV views corridor pension reform positively

The innovations do not go far enough for the Federation of Austrian Industries (IV). It welcomes the reform of the corridor pension, but further steps to reform the pension system are "urgently needed" and are missing from the draft law. However, the government recently announced further changes: This year, they plan to pass a partial pension and a sustainability mechanism. The latter is intended to force a future government to take further measures in the pension sector if the current ones are insufficient.

(APA/Red)

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