Austria’s Freedom Party (FPÖ) says it will not support the government’s planned “Active Pension” scheme, which is due to be approved by the National Council. The party argues that some of the proposed rules could put certain pensioners at a disadvantage.
FPÖ deputy parliamentary group leader Dagmar Belakowitsch criticised the treatment of people who retired before the age of 65 under the long-service or heavyworker pension schemes. She also objected to the way the new tax exemption would be calculated.
Under the proposed system, pensioners would be able to benefit from a tax-free amount of up to €15,000 a year. However, the exemption would be calculated at a maximum of €1,250 per month rather than across the whole year.
The FPÖ plans to submit two amendments. The first would allow men who have completed the required 480 months of insurance to use the Active Pension before turning 65. The second would allow the €15,000 tax-free amount to be calculated over the full year.
Belakowitsch said the monthly calculation could make it harder for retired skilled workers to take temporary jobs during periods when companies face a sudden rise in demand.
She described the proposed legislation as “very badly made” and said the FPÖ could not support what she considers an unfair system. FPÖ consumer protection spokesman Peter Wurm also criticised the reform, saying the government had handled it poorly.
The government says the Active Pension is intended to encourage people to remain in work after reaching retirement age and help ease Austria’s shortage of skilled workers. The FPÖ, however, argues that the proposed rules may prevent experienced pensioners from working as flexibly as possible.
The debate now turns on whether the governing parties will accept the FPÖ’s proposed changes before the legislation is approved.
