Since 2005, parents in Austria have had the option of allowing the parent who remains employed after the child is born to transfer up to 50 percent of their partial credit in the pension account to the parent who is responsible for most of the childcare. This is possible up to the calendar year in which the child turns seven. “Partial credit” means the sum of the contribution bases acquired per year. These are credited to the pension account at 1.78 percent.
Until your seventh birthday
“What is not entirely clear to many people is that they are relatively well protected during the child-rearing periods in the first four years. The raising parent is currently credited with as much pension as if he or she had a monthly income of 2,163 euros. For many parents, pension splitting is particularly interesting for the period afterwards, up to a maximum of the child’s seventh birthday, because there is usually a longer part-time phase,” says AK expert Bernadette Pöcheim.
What is also particularly valuable for women, “as a rule it concerns women”, is that the agreement, once made, is irrevocable, according to the AK expert. “So it also applies if a couple separates.”
For almost all insured people
Pension splitting is in principle possible for all insured persons, regardless of whether they are business owners, employees, newly self-employed or freelancers. “Special regulations only apply to civil servants,” says Pöcheim. “It is not relevant whether the parents of the child or children live in the same household, are married or have a partner. Recognized parenthood is sufficient. Adopted or foster children are also taken into account.” A transfer is not possible if one parent already receives a pension from their own insurance. “It is also important that pension splitting is applied for by the tenth birthday of the last child born together.”
