The Spread of Company Pensions in Austria in 2007

International comparisons clearly show that the company pensions in Austria are like a voluntary additional income to the public pension. Its level of prevalence and the contribution and payment levels are also comparatively low but the variety of ways they are executed is high. A direct survey of businesses carried out by WIFO in spring 2008 allowed a comprehensive estimate of the arguments for and against company pensions and a database to be created from which figures for the whole economy can be extrapolated. In total one quarter of businesses in Austria offer their employees a company pension. In the public sector, in the financial services sector and in the energy sector the incidence of company pensions is traditionally high. However, it is relatively rare for a company pension to be offered in the hotel and restaurant industry or the building industry. In 2007 only almost one third of employees had any entitlement to a company pension. One eighth of those people who have a state pension for employees also received an additional company pension. In 2007 the average monthly company pension amounted to 890 € (14 times a year). The strong expansion of company pensions since 2000 is at the expense of the amount of any pension payout. The number of people who draw a company pension will remain small because group insurance programmes which are currently so popular can predominately only be paid out in a single lump sum.