EN ECB -PUBLIC  
 
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 19 May 2014  
on pension restrictions  
(CON/2014/ 35) 
 
Introduction and legal basis  
On 27 March 2014 , the European Central Bank (ECB) received a request from the Austrian Ministry of 
Finance for a n opinion on a draft  law on the limitation of s pecial pension arrangements (herei nafter the 
‘draft law’).  
The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the third indent of Article 2(1)  of Council Decision  98/415/EC1, 
as the draft law relates to the Oesterreichische Nationalbank ( OeNB ). In accordance with the first se n-
tence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Go verning Council has 
adopted this opin ion. 
 
1. Purpose of the draft law  
1.1 Generally, the draft law aims to secure the long -term stability of pension rules in the public sector 
where special pension rights exist. It also applies to private entities owned by the State  such as  the 
OeNB. It contains provisions reducing emoluments and pension benefits for public office holders , 
in particular by  raising pension safeguard contributions, pension contributions and the pensionable 
age, including  with respect to the OeNB  Terms of Service I and II . The d raft law  also abolishes a 
currently applicable death grant ( Sterbequartal ), whereby after the death of a pensioner the pension 
is paid for a further three months . Part of the draft law, i.e. an amendment to the Federal Constit u-
tional Law on limiting the emoluments of public office holders, will be adopted as constitutional 
law.  
1.2 With regard to the OeNB , the draft law only applies to pensioners and active officers  and emplo y-
ees falling under Terms of Service I and II. The ECB notes that there are current ly five different 
terms of service (i.e. classes I to V). Terms of Service I and II only  apply to staff hired before 
31 May 1993 and 30 April 1998 , respectively. The ECB understands that such staff receive OeNB 
pension s based on individual agreements with the OeNB  and do not fall under the general social 
                                                 
1  Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national authorities 
regar ding draft legislative provisions (OJ L 189, 3.7.1998, p. 42 ). 
ECB -PUBLIC  
2 security system .  
1.3 The draft law obliges former OeNB officers  and employees  subject to Terms of Serv ice I and II to 
pay pension safeguard contributions to the OeNB from 1 January 2015. The pension safegu ard co n-
tributions amount to at least 5.8% of monthly pensions for persons subject to  Terms of Service I 
and at least 3.3% of monthly pensions  for persons subject to Terms of Service II. Contributions 
may amount to up to 25% of payments  in the case of  highe r pensions under both schemes.  
1.4 Active officers and employees subject to Terms of Service I and II will pay pension contributions 
from 1 January 2015. The pension contributions for officers and employees under Terms of Se r-
vice I amount to 5% of monthly  emoluments and supplementary payments from 1 January 2015 
and are gradually increased to 10.25% from 1 January 2018. Regarding Terms of Service II, the 
pension contributions amount to at least 10.25% of their monthly emoluments and supplementary 
payments up to the relevant maximum contribution base under the Law on general social security, 
and an additional 3% for emoluments in excess of the maximum contribution base, which is grad u-
ally increased to 5% from 1 January 2017. The OeNB will have to withhold th e relevant amounts 
from salary or pe nsion payments.  
1.5 Additionally, the draft law raises the retirement age for active officers  and employees  subject to  
Terms of Service I and II . This is gradually increased to 61.5  until 2028  (for employees subject to  
Terms of Service I) and 65 until 2025  (for employees subject to Terms of Service II) . If a n emplo y-
ee claim s a pension before the pensionable age, the pension will be lowered  accor dingly.  
1.6 The draft law also ent itles the OeNB’s General Council to establis h a flexible pension rule for the 
members of the Governing Council  and employees, including reductions  in the case of  retirement  
before the age of 65. An officer or employee may claim a flexible pension upon reaching 62, pr o-
vided that he or she has served at least 40 years. According to the draft law, OeNB pensions are a d-
justed at the same time and to the same extent as pensions under the statutory pension insurance 
scheme.  
 
2. Central bank independence  
2.1 As the draft law applies to and directly affects members of the OeNB’s  decision -making bodies and 
its employees, it should be examined from the perspective of central bank independence.  This e x-
amination is without prejudice to the Member State s’ competences under Article 153(4)  of the 
Treaty.  
2.2. The pri nciple of central bank independence as enshrined in Article 130 of the Treaty prohibits third 
parties, including the governments of the Member States, from issuing instructions to the national 
central banks (NCBs). In addition, th is principle means that th ird parties may not influence, directly 
or indirectly, an NCB in the performance of its tasks or as regards its ability to fulfil its mandate 
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3 both operationally in terms of manpower, and in terms of a ppropriate financial resources2. 
2.3 Member States may n ot interfere with an NCB’s ability to employ and retain the qualified staff 
necessary for the NCB to perform independently the tasks conferred on it by the Treaty and the 
Statute of the European System of Central Banks and of the European Central Bank. To protect a u-
tonomy in staff matters, the ECB has consistently recommended in its previous opinions and in its 
convergence reports that any amendment to legislation on remuneration for members of an NCB’s 
decision -making bodies and its employees should be dec ided in close and effective cooperation 
with the NCB, taking due account of its views, to ensure the ongoing ability of the NCB to ind e-
pendently carry out its tasks3. Autonomy in staff matters extends to issues relating to staff pe n-
sions4. 
2.4 In order to protect the OeNB’s autonomy in staff matters, legislative provisions affecting the rem u-
neration of members of its  decision -making bodies and employees should be drafted in close and 
effective cooperation with the OeNB. Against this background , the OeNB’s autonomy  in staff ma t-
ters, which is an aspect of its financial independence , should be respected by tak ing due account of 
the internal pension reform adopted by the OeNB on a voluntary basis in January 2014 and of the 
OeNB’s opinion on the draft law .  
 
This opinion will be published on the ECB’s website.  
 
 
Done at Fran kfurt am Main,  19 May 2014 . 
 
[signed]  
 
The President of the ECB  
Mario DRAGHI  
                                                 
2  See, for example, the ECB’s Convergence Report 2013, p. 24, paragraph 6 of Opinion CON/2012/89 and paragraph 4 of 
Opinion CON/2013/46. All ECB documents are published on the ECB’s website at  www.ecb.europa.eu.  
3  See Opinion CON/2011/106, in particular paragraph 4.3.  
4 See the ECB’s Convergence Report 2013, p. 27 and the reference to ECB opinions made there.