WU as an employer pays into both a company provision fund and a company pension plan for employees (excluding civil servants). In this article, we would like to provide an overview of these two products. It outlines, which entitlements are associated with these funds, and how employees can dispose of the funds paid in.

The company provision fund (Abfertigung) is a statutory severance pay scheme. It applies to all Austrian employment relationships that have begun since January 1, 2003 and, since January 1, 2008, also to all employment relationships of freelance employees according to § 4 para. 4 ASVG (e.g. external lecturers). Savings are to be made over the entire working life, which are paid out at the latest on retirement. In the event of a change of employment contract or employer, the funds are generally "taken along". The employer has to pay a monthly contribution of 1.53% of the gross salary to the provision fund. These contributions are then invested by the provision fund. There are several provision funds in Austria, WU chose APK. The current account balance, information on the investment and return and applications for transferral or payment (if eligible) can be viewed or submitted via the online portal kontostand.at. Registration is possible with ID Austria. WU employees should remember to check any claims with the APK at the end of their employment relationship with WU (APK information brochure). In particular, in the event of termination by lapse of time - the most common type of termination of employment contracts at WU – you are entitled to dispose of your capital, provided that at least 36 monthly contributions have been paid upon termination. The accumulated funds can then be paid out as a lump sum or transferred to the provision fund of a new employer or transferred to an institution for occupational retirement provisions. If you cannot dispose of your capital (e.g. because you have not accumulated 36 monthly contributions), an application for transferal of the entitlement to the current provisions fund of your new employer can be submitted to the APK at the earliest 36 months after the end of the contributions (this application is submitted to the current provisions fund). If the funds continue to be invested in the APK after the end of your WU employment contract and you move abroad, you have to inform APK of your new address yourself. Otherwise, APK will not be able to provide you or your beneficiaries with any further information (e.g. on entitlements).

The company pension plan is the "second" pillar of retirement provisions in Austria, which is intended to ensure financial security in retirement alongside the statutory pension (which is the first pillar in Austria) and private pension provision (which is the third pillar). Under the Collective Bargaining Agreement for Austrian universities, payments to a company pension fund are mandatory (§§ 71 ff). There is a separate federal pension fund for civil servants. Hereinafter, we give more details on the company pension plan for WU employees who are subject to the Collective Bargaining Agreement. The relevant framework conditions for this pension plan at WU are set out in an operational agreement.

As stipulated in the Collective Bargaining Agreement, 3% of the gross monthly salary is paid into the pension fund for income up to the maximum contribution base (according to “ASVG”). For the part of the gross monthly salary exceeding the maximum contribution basis, 10% is paid. For appointed professors and in future for all full professors, 10% of the gross monthly salary is generally paid into the pension fund. In addition, own contributions can be made. There are several company pension funds in Austria, the responsible pension fund for WU employees is Valida. Your current account balance, information on investment and return as well as applications for transferral or payment (if eligible) and a pension calculator can be viewed or submitted via the Vorsorgeportal. You can do the initial activation of the portal using again ID Austria. In accordance with the Collective Bargaining Agreement, inclusion in the company pension fund takes place as soon as the employment relationship with WU has lasted longer than 24 months without interruption. As part of the initial inclusion in the company pension fund, a decision can be made on the risk protection (without or with increased risk protection) as well as on the investment group (defensive, balanced or dynamic). If no decision is made, contributions are invested in the defensive investment group. To support employees in this decision, the two staff councils together with the employer organize an annual information event with Valida. However, not only employees who are newly included, but all employees can attend this event and ask questions. The presentation from the last event, including details of the available options is available on our homepage. The contributions paid by WU may - depending on age and the amount saved - be paid out as a lump sum or as monthly pension payments after the end of employment at WU. However, the funds can also be continuously invested by Valida or transferred to other pension funds or similar. However, an active application by the beneficiary is required for any disposal. At the end of an employment relationship with WU, all employees should therefore remember to check any claims with Valida and make a decision on the further disposal.

^28.05.2025

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