The AUA will also cut luxury pensions from 2024. About 650 people are affected, mainly former airline board members, but also individuals and employees who received high supplementary pensions in addition to the statutory pension.
Entitlements will decrease by a maximum of 15 percent in the future, with only pension premiums above 500 euros being reduced, the Ministry of Economic Affairs announced on Monday.
Since July 1, 2012, the pension system for active AUA shipboard personnel has been fully converted to defined contribution plans. This means that only people who have received a defined benefit pension fund commitment before this deadline will be affected.
A law that comes into effect on January 1, 2024 will reduce these luxury pension entitlements and convert them into defined contribution pension fund obligations. According to the ministry, the switchover will take place autonomously at the AUA; cash flows from the public sector are not taken into account in the switchover.
Reduction of up to 15 percent
The pension part of more than 500 euros to 1,000 euros will be reduced by 5 percent, the pension part of more than 1,000 euros to 1,500 euros by ten percent, from more than 1,500 euros to 2,000 euros by 15 percent and the pension part above 2000 euros by 20 percent, whereby the total reduction may not exceed 15 percent of the monthly reference pension.
Source: Krone
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