Pensions: VfGH confirms rules on aliquoting

VIENNA. The Constitutional Court (VfGH) has rejected the complaint from members of the SPÖ and FPÖ as well as several labor and social courts against the pension quota system. This is constitutional because the legislature can assume an “average view”. The VfGH announced yesterday whether the result is considered satisfactory in all cases cannot be measured by the principle of equality.

Pension aliquoting means that the amount of the adjustment in the first (full) year of retirement depends on the month in which you start. The later in the year you retire, the lower the increase will be in the following year. For those who retire in November and December, there will be no increase at all the following year.

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According to the Constitutional Court, it is “within the legislature’s legal and policy scope to decide on an aliquoting model when making the first adjustment.” The Court points out that unequal treatment would arise because all pensions (regardless of the reference date) would be increased annually on January 1st – there are no objections to this.

In addition, the legislature softened the contested aliquoting in 2023 and suspended it for the years 2024 and 2025 in order to limit the undesirable effects of this model, according to the highest judges.

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