Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out

Changes in the Austrian Pensionskassen System

VIEWS: 5 PAGES: 17

									               Partners for Financial Stability Program

                                 In cooperation with

             Organization for Economic Co-operation and Development




          Organisation de Coopération et de Développement Économiques




                                        The
                                    INPRS
       INTERNATIONAL NETWORK OF PENSIONS REGULATORS AND SUPERVISORS


                Seminar on Private Pensions

                                       Hosted by




    The Agency for Supervision of Pension Funds and Insurance of Croatia


                          Room document No. 8 – III. Session

                              Mag. Dr. Fritz Janda
                     Changes in the Austrian Pensionskassen
                                     System




                                   May 27-28, 2003
1




                                   Zagreb, Croatia
INPRS Seminar in Zagreb
       May 2003
           -
 Changes in the Austrian
 Pensionskassen System

        Fritz Janda
3
              Contents
   a) Introduction

   b) Changes in the Austrian
       Pensionskassen System

   c) Outlook


                                 4
  a) The Three Pillar Model
- 1. Pillar: tax (20%) and social
     insurance contributions (80%)

- 2. Pillar: occupational retirement
     provision

- 3. Pillar: individual provision

                                       5
          a) The Second Pillar
- Pensionskassen
- Life insurance
- Balance Sheet Reserve of the Employer
- Voluntary higher Contributions to the Public
  Pension System

   In Austria: 1/6 of employees covered
  In the EU: 1/2 of employees covered
                                                 6
      a) Pensionskassen I

11% of employees are covered by a
Pensionskassen contract in Austria

Pensionskassen are the biggest private
pension payer in Austria - EURO 274 million



                                              7
8
            a) Pensionskassen II

   Joint stock company
   Multi / Single Employer Pensionskassen
   Business Aim: Administer - Invest - Pay
   Contributions: Employer and Employee



                                              9
            a) Statistics 2002

Pensionskassen: 13 Single Employer
                 7 Multi Employer

Beneficiaries: 344.000
Assets Administered: EURO 8,3 billion

Contributions: EURO 602 million
                                        10
               b) Supervision New and Old
                                         Austrian Financial Market Authority


Federal Minstery of Finance Federal Ministery of Finance Federal Ministery of Finance   Securities Supervision
Pensionskassen Supervision Banking Supervision             Insurance Supervision

- Costs carried by supervised institutions themselves
- Other security measures
                                                                                                                 11
          b) The IORP - Directive
   History                   Aim
    - 1997: Green Book         - Common
    - 2000: Proposal             Standards for a
    - 2002: Council              common market
    - 2003: Parliament         - Strengthening
    - June 2003: Council         2. Pillar

    Austria: No major changes to be expected

                                                   12
            b) Further Changes

   Balance Sheet Reserve --> Outside Funding
   Defined Benefits --> Defined Contributions
   Private Sector --> Public Sector
   Mindestertrag / Performance guarrantee



                                                 13
         b) Severance Payments
   Old System              New System
    - Balance Sheet          - Outside Funding
    - 2 to 12 salaries       - Defined
    - Taxation: 6%             Contribution
    - Function:              - Taxation: 6%
      link employee -        - pension: no tax
      firm                   - Function:
                               more mobility

                                                 14
           b) Zukunftsvorsorge

   State Premium up to EURO 180.-
   Assets are bound for 10 years
   Investment: 40% shares traded on the Vienna
    Stock Exchange
   Incentives to take assets as pension


                                                  15
              c) Outlook
- Recent Survey
- Development of the Capital Markets
- Taxation
- Development of the 1. Pillar
- Development in the Public Sector
- Collective Bargaining Agreement


                                       16
17

								
To top