The Austrian Trade Union Federation (ÖGB) has responded to the recent medium-term forecast by the Pension Commission, asserting that Austria's public pension system remains financially stable in the long term. However, ÖGB underscores that maintaining this stability depends on a strong labor market, particularly increased employment among older individuals.

The Pension Commission's report reaffirms the resilience of Austria's solidarity-based pension model. According to ÖGB, the sustainability of the pension system is directly linked to high employment rates. Ensuring that more citizens, especially those approaching retirement age, remain employed is seen as a crucial factor for the continued success of the country's pension structure.

Call for Policy Reforms to Support Older Workers

ÖGB highlights the need for targeted political measures to strengthen employment opportunities for older workers. One of the key proposals is the introduction of a bonus-malus system, which would create incentives for businesses to retain or hire employees over the age of 60. Currently, a significant proportion of Austrian companies, especially medium and large enterprises, do not employ any staff members above this age threshold, which the trade union views as a missed opportunity to utilize the experience and expertise of older workers.

Under the suggested bonus-malus framework, companies would receive benefits for employing older workers and face penalties if they fail to do so. This approach aims to counteract the trend of early labor market exit among older individuals and to help them remain active contributors to the social insurance system. By maximizing the participation of older workers, the ÖGB believes that the intergenerational contract--an agreement underpinning the public pension system--can be maintained on a sustainable basis.

Opposition to Raising the Retirement Age

While some have advocated for an increase in the statutory retirement age as a means to secure pension funding, ÖGB opposes this measure. The organization points out that many employees already face challenges in staying employed until the current retirement age. Therefore, ÖGB maintains that the focus should be on improving job prospects and workplace conditions for older people, rather than on extending the working life through legislative changes.

The union further notes that dismissing older employees before they reach retirement age not only undermines individual livelihoods but also places additional strain on the pension system, as it reduces the number of contributors and increases the number of benefit recipients. ÖGB emphasizes that a proactive approach--such as the proposed bonus-malus incentive system--would help address these issues more effectively than simply raising the pension age.

Securing Austria's Pension Future

The current discourse surrounding pension sustainability in Austria revolves around balancing the social contract between generations and adapting to demographic shifts. ÖGB's stance is that maintaining high employment levels is the most effective way to ensure the stability of the public pension system without resorting to unpopular or potentially harmful policy shifts. The union advocates for stronger measures to integrate older workers into the labor market, promoting both economic security for individuals and long-term financial health for the pension system as a whole.

In conclusion, ÖGB's response to the Pension Commission's forecast calls for strategic action from policymakers and businesses alike. By prioritizing employment opportunities for older workers and implementing incentive-based systems, Austria can continue to uphold its commitment to a secure and sustainable public pension system for current and future generations.