Old Age Pension Scheme for Attorneys

Mandatory insurance

• Attorneys (since 2011 associates have also been included).¹

Voluntary insurance

• Under certain conditions formerly mandatorily insured persons can request to continue insurance on a voluntary basis. 
• Under certain conditions insurance months can be additionally purchased.

General finances

• Funded schemes based on contribution payments and capital revenues, with various financing mechanisms (partly PAYG-, partly capital-funded).
• No government guarantees or state subsidies (problem of ‘funding gaps’).²

Contribution rates

• Fixed amount (with possibility of reduction under certain conditions) or fixed share of declared income paid by insured person; contributions differ between regional funds.

Taxation of contribution payments

• Contributions are tax-deductible.

• Pension funds are independent public law institutions (no insurance carriers), self-administered and region-specific.
• The professional chambers are responsible for the administration and organisation of the schemes, with supervision by the responsible ministries of the federal government.

Qualifying conditions* 

• Retirement age between 65 and 70.
• In general, waiting period of 12 months, partly only minimum contribution period of one month.

Early retirement

• Entitlement to an early retirement pension if standard retirement age will be reached within four years, with negative (permanent) adjustments to pension benefits (4.8% per year).

• Possibility of early retirement (but lower pension benefits) if severe and permanent invalidity has occurred (waiting period: 5 to 10 years depending on age; no waiting period under certain conditions). 

Deferred retirement

• Retirement can be deferred without a maximum age.

Combining employment & retirement

• Termination of employment is often a precondition for claiming pension benefits. 

*Exact conditions are regulated in self-administration by the statutes of the Austrian bar association and the regional professional chambers.

Pension benefits

• Based on total amount of individual contribution payments, contribution period, and ‘basic old age pension’ (Basisaltersrente) according to statutes; benefits may differ between pension funds.

Benefit calculation

• Based on the sum of contribution payments, partly plus number of valuable contribution months and amount of ‘basic old age pension’ (Basisaltersrente) set by statutes of the professional chambers.
• Adjustments: depending on surpluses in reserve funds and decision of professional chambers.

Taxation and social security contributions on pension payments 

• Pension benefits are subject to income tax according to the general tax rules.
• Contributions to (statutory/private) health insurance are mandatory (fully paid by retired person).