Opinion of the European Central Bank of 19 May 2014 on pension restrictions (CON/2014/35)
Date: 2014-05-19
Institutions: European Central Bank
Subjects: Austria, central bank, national law, pension scheme, retirement conditions

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 an opinion on a draft law on the limitation of special pension arrangements (hereinafter 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  sen-

tence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has 

adopted this opinion. 

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 draft 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 Constitu-

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 employ-

ees falling under Terms of Service I and II.  The ECB notes that there are currently 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 

pensions based on individual agreements  with the OeNB and do not fall under the general social 

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Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national authorities 
regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42). 

 
 
 
 
                                                 
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security system.  

1.3  The draft law obliges former OeNB officers and employees subject to Terms of Service I and II to 

pay pension safeguard contributions to the OeNB from 1 January 2015. The pension safeguard con-

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 higher 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 Ser-

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 gradu-

ally increased to 5% from 1 January 2017. The OeNB will have to withhold the relevant amounts 

from salary or pension 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 an employ-

ee claims a pension before the pensionable age, the pension will be lowered accordingly. 

1.6  The draft law also entitles the OeNB’s General Council to establish 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, pro-

vided that he or she has served at least 40 years. According to the draft law, OeNB pensions are ad-

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 ex-

amination  is  without  prejudice  to  the  Member  States’  competences  under  Article  153(4)  of  the 

Treaty. 

2.2.  The principle 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, this principle means that third 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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both operationally in terms of manpower, and in terms of appropriate financial resources2. 

2.3  Member  States  may  not  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 au-

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  decided  in  close  and  effective  cooperation 

with the NCB, taking due account of its views, to ensure the ongoing ability of the NCB to inde-
pendently  carry  out  its  tasks3.  Autonomy  in  staff  matters  extends  to  issues  relating  to  staff  pen-
sions4. 

2.4 

In order to protect the OeNB’s autonomy in staff matters, legislative provisions affecting the remu-

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 mat-

ters, which is an aspect of its financial independence, should be respected by taking 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 Frankfurt am Main, 19 May 2014. 

[signed] 

The President of the ECB 

Mario DRAGHI 

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3  
4 

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.  
See Opinion CON/2011/106, in particular paragraph 4.3. 
See the ECB’s Convergence Report 2013, p. 27 and the reference to ECB opinions made there. 

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