The employer declares his intention to provide employees with pension benefits. In a company agreement, the conditions of the pension benefits are described. The employer then undertakes a pension fund contract with VBV-Pensionskasse AG according to that company agreement.
For more information, have a look at our brochure Pensionskasse in questions and answers.
A life cycle pension plan is a specific form of a defined contribution pension fund model. If the employer implements such a pension plan, there are up to three different investment portfolios employees can choose from until retirement.
In the classic life cycle pension plan the employee decides when he wants to switch his investment portfolio. The automatic life cycle pension plan has defined age-limits where the switch into another portfolio – with less risk – is planned.
Yes, you can increase your VBV-pension through employee’s contributions. You may contribute up to 1,000 Euro per year and benefit from a government-sponsored premium. The resulting pension is up to 100% tax free.
For more information, have a look at our flyer employee’s contributions.
As soon as your employer informs us about the termination of your employment you will receive an information letter from VBV-Pensionskasse with further details about the handling of your capital.
According to the legal guidelines, the payment of a lump sum is only possible under the following provisions:
The right to draw a lump sum may depend on the fulfilment of a certain period of contribution payment, which is stated in the pension agreement.
Your employment has to be terminated. We have to await the employer’s announcement of your employment termination.
The lump sum resulting from employer’s and employe’s contributions together must not exceed 12,300 Euro (value 2018). (The legal limit according to § 1(2) and (2a) PKG is upgraded regularly confirmed by law and according to specifically defined policy.)
If the lump sum exceeds the legal limit you have following options:
- you may request the conversion of the capital into a non-contributory qualifying entitlement;
- you may request the transfer of the capital to the pension fund, collective occupational insurance scheme, pension scheme within the meaning of § 5 (4) PKG or collective annuity insurance scheme of a new employer, or to an annuity insurance scheme with no entitlement to surrender;
- you may request the transfer of the capital to a foreign retirement pension scheme, if you are changing your place of employment to a place abroad on a long-term basis;
- you may request the continuation of the scheme with the payment of your own contributions.
Usually, your employer informs us about your retirement and we will send you a letter with all details and forms we need to pay out your occupational pension. If you do not retire from the employer who implemented the VBV pension plan for you, please contact us as soon as you received the retirement notification from the state pension (ASVG-Bescheid).
Your initial pension will be calculated according to the contract conditions and depends among others from your capital, your age at retirement and the investment result.
For more information, please have a look at our brochure Pensionskasse in questions and answers.