Company pension fund contributions can be maintained during partial pension from 1 January 2026
Austria's Company Pension Act (BPG) has been amended so that employees taking a partial pension (Teilpension) from 1 January 2026 may continue contributing to their company pension fund (Pensionskasse) at the previous level, just like employees on parental leave or other reduced-hours arrangements. The change was introduced by BGBl. I Nr. 47/2025.
What changed
A new sentence in § 3(4) of the BPG now makes explicit that, when an employee takes a partial pension (Teilpension under § 4a of the General Pension Act/APG), the already-existing rules on maintaining pension fund contributions during work-time reductions apply by analogy. Previously these rules covered parental leave, educational leave, and similar reduced-hours situations but did not explicitly mention partial pension. The amendment takes effect on 1 January 2026.
Who is affected
Employees who have a company pension fund agreement and who choose to phase into retirement via a partial pension from 1 January 2026 are directly affected. Employers who contribute to a pension fund for such employees also need to be aware of the change.
What to look out for
If your employer reduces their pension fund contributions because you are working fewer hours under a partial pension arrangement, you may choose to continue paying your own contributions at the previous level. You may also choose to cover the employer's reduced portion for the duration of the reduced hours, protecting the long-term value of your company pension.