Mandatory provision for the self-employed. („Vorsorgekasse“)

At the start of your self-employment, you will receive a letter asking you to select a provident fund within the first six months and to conclude the membership contract.

If you are unable to choose a pension fund provider, you will automatically be assigned to a pension fund.

The mandatory self-employed pension scheme (‘Vorsorgekasse’) is included in the SVS contributions. You can draw benefits from the self-employed pension fund when you start your statutory pension or end your self-employment.

The amount of the contribution to the self-employed pension scheme is currently 1.53% of the (provisional) contribution basis for statutory compulsory insurance with the SVS - and depends on the amount of your income. The pension funds will inform you annually about your current account balance.

You can receive payment of benefits if you have ceased your business activity in Austria or in the following cases:

→ You have paid your social security contributions to the SVS for at least three years

AND your business licence has been discontinued:

• the business licence has been dormant for at least two years

or

• two years have passed since the business licence was cancelled

→ You have started your statutory pension

or

→ five years have passed since you were last required to pay contributions under the Company Employee and Self-Employed Pension Schemes Act (‘BMSVG’)

or

→ you have not been subject to a contribution obligation for five years.

If you fulfil the above conditions, the pension fund will inform you how you can dispose of the amount you have saved or you can submit a written request for payment.