Austrian Parliament Approves Second Pillar Pension Reforms
17 May 2012 (PLANSPONSOREurope.com) –Austria's parliament has approved a reform of the law governing Pensionskassen as well as saying that more reforms are on their way.
Amendments include a “security pension” option and a lower discount rate where initial pension payment has a guarantee
The revised law also aims to increase employee choice on asset allocation whilst making contribution schemes more flexible for plan sponsors.
The revision will also encourage retiree representation on supervisory boards.
According to newswire Austria.com, Treasury Minister Maria Fekter from governing party ÖVP said that the reforms were urgently needed especially given the recent turmoil in financial markets and that further plans of the second pillar are planned
The revision also gained the support of second government party SPÖ, which has previously shown skepticism surrounding funded schemes and non-state supported retirement provision, with SPÖ pension representative Erwin Kaipel noting that the guarantees introduced as part of the reforms would help minimize future losses.
However, the FPÖ and Green parties claimed the reforms had not gone far enough.
The reforms are likely to come into effect in 2013.