VIEWS: 5 PAGES: 17 POSTED ON: 5/5/2012
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
"Changes in the Austrian Pensionskassen System"