Given the budget of the state, Johannes Kopf, head of the labor market service, is a thorn in the part of partial pension: “The model is completely attractive for employees, but clearly too expensive.” Older people would also prefer younger people who are struggling on the labor market.
“If you say that we should remove the partial pension for budget trees, I would not defend myself against it, I would not scream,” says AMS Boss Kopf.
In partial retirement, everyone who is confronted five years before retirement and agrees with their operation. They reduce their working hours, but they still get a large part of their salary and do not lose pension contributions. Head: “The most common is the model: you only work half, but get three -quarters of the wage and the full pension insurance. It is completely attractive – who doesn’t want that?”
The model is particularly expensive for the AMS, because in the case of continuous partial pension, 90 percent of the costs (wage replacement, pension contributions) are paid by unemployment insurance. Head: “We pay almost everything.”
The government program says that a new partial council must partially replace the model of partial pension. Head: “Subboard then means that you continue to work from 62 or 63, but sometimes you can already get a pension.” However, this concept would then be considerably cheaper for the state. Head: “Moreover, the funds then come from pension insurance and no longer from unemployment insurance.”
Go to the current partial pension model: “In itself, I think the idea, especially in stressful agreements, that you no longer work full -time in old age, but in recent years before the pension for good. But the Austrian model is clearly too expensive with a view to the budget situation. I thought it was justified to limit it.”
Partial pension blocked on the retreat
A problem is that many who are partially partially pension in continuous pension, just work completely for six months and do not have half a year. This is actually not in the interest of the inventor. After all, it was possible to push back the blocked partial pension variant by covering the AMS only 50 percent of the costs. Head: “When partial pension was introduced, people were able to work for 3.5 years in the blocked partial retirement and then stay at home for 3.5 years. It was important to reduce the blocked partial retirement.”
In the past, 90 percent of the blocked partial pension decided. Now 80 percent choose the continuous variant, which also has the problem of high costs.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
