Wohlfahrtseinrichtungen Pension fund and death-grants fund

bullet1 Basic information

The compulsory insurance in the pension fund ended on December 31st, 2012. The following information only has historic character.


The architects’ and chartered consulting engineers’ pension insurance was founded in 1951 under the name „Wohlfahrtseinrichtungen“. It has been financed from the beginning without federal subsidies. Due to a fundamental reform in 2000 the acquired pension rights were long-term secured, parameters are being evaluated on a regura basis in order to identify necessary adaptions.

Whose risks are covered? When does the coverage commence?
All active architects and chartered consulting engineers and employed managers of ZT-companies are compulsorily insured.

What has to be done?
The local Chambers of Architects and Chartered Consulting Engineers pass the information about their member’s status (whether they are active or not); based on that information, new members are being contacted by the WE who sends them the respective forms in order to transmit their personal data.  For the professional start up phase reductions are applicable; during the firs two years (after having sworn the oath) only the minimum contributions have to be paid. Until the end of the fifth year another reduction is applicable, as long as the revenues do not exceed € 23.500,--.

What are the characteristics of a compulsory insurance?
The social security system in Austria foresees, that related to all professional revenues social insurance contributions have to be paid. Thus pension rights are acquired, given that – if applicable - a qualifying period has been completed.
The ZT (as well as the attorneys at law) opted out of the common social pension system in 1999. Consequently the WE replaces the common pension system.
The fundamentals are regulated in §§ 5 GSVG, 5 ASVG, 29-31 ZTKG and the „Statute WE 2004“. The statute is a regulation of the „Kammertag“ (comparable to a general assembly of mandataries) of the Federal Chamber.

What are the benefits?
The pensions-insurance’s benefits are old-age-pensions, survivor’s pensions and disability pensions. The death-grants fund, which is part of the separated assets of the WE, provides single payments to survivors.

Which are the features of the Pension fund?
The reform in 2000 comprised a fundamental change of the system. The pay as you go system was replaced by a mixed system containing a mixture of a pay as you go system and a funded system. New pension rights are calculated based on defined pension schemes. Individual accounts are affiliated to each beneficiary which are the sole calculation-basis for pensions. Annual interests will be accrued for those contributions, which are allocated to the individual accounts. The total sum of allocated contributions and accrued interests are the calculation basis, being divided by life-expectancy considering discounted interest.  

Which amounts have to be paid?
The minimum contribution for 2011 equals € 2.496,72, the „full contribution“ (Voller Beitrag) equals  € 15.603,48 and the maximum contribution equals € 19.426,44.
The contribution base is the revenues incurred two years before (i.e. the revenues incurred in 2009 for the contributions in 2011). In case of given evidence of the revenues the contributions equals 24,5% of the revenues.

Without evidence the full contribution has to be stipulated. Compulsory contributions are fully tax-deductible.

What are the defining features of a “pay as you go- system” and a “funded system?
In a pay as you go-system the contributions incurred are spent fort he pensions of the same year. The number of insured persons (and their revenues) determines the system’s financial feasibility. Normally theses systems are based on fixed pensions (i.e.: the amount of the old-age-pension is determined) which have to be financed by current contributions. If a deficit occurs, it has to be equalised by the state using taxes.
A funded system is based on investing the contributions incurred until the pension payments will start. The accumulated capital and accrued interest are the primary source for the pension payments. The pensions are contribution-defined; the amount of the pension payments is determined by the contributions paid.
The mixed system of the WE includes that the pension rights are partially funded.

Where is “my capital“?
Two answers have to be given:

      1. The assets of the WE are predominantly invested in bonds, about 20% in stock capital and (according to the method of valuation, either based on the valorised purchase-price or market value) 10-20% in real-estate.
      2. After having paid the pensions the exceeding amount is invested for the whole group of insured persons, there are no individually affiliated investments at all. Whereas the monthly pension payments depend on the individual contributions paid, the total sum of payments varies within the statistical range.

The assets of the WE are separated assets of the Federal Chamber of Architects and Chartered Consulting Engineers, being administered by the board of trustees (Kuratorium).

How much of the contributions will be reimbursed?
As just mentioned, the total sum of pension-payments varies and depends on individual circumstances, as in every social security system. Apart from the most important criterion, the finally reached age, the amounts and duration of survivor’s-pensions (widows, orphans, and partners) paid have to be considered. The importance of disability pensions results from covering the risk of incapacity for work right from the beginning of the professional activity, if the incapacity for work derives from an accident.  If it derives from an illness, a qualifying period of 5 years and as from an age of 50 years respectively 8 years has to be observed.


Who is in charge of which duties?
Das board of trustees (Kuratorium) is assigned by law to administer the separated assets of the WE and takes the decisions as authority of first instance. The daily business is being run by the office of the WE.
The board (Vorstand) of the Federal Chamber takes the decisions as authority of second instance in case of appeals against decisions of the board of trustees.
The „Kammertag“  enacts regulations including the statute of the WE according to the board of trustee’s proposals.
The auditor certifies the annual statements.

The actuary makes the actuarial annual statements which are certified by the actuarial-auditor. Thus both are responsible for the actuarial fundamentals.
The ministry of economic affairs is the inspecting authority.