A client is entitled to dispose of his/her severance capital if 36 monthly contributions have been paid up to termination of the employment relationship and if the employment was terminated for one of the following reasons:
- mutually agreed termination
- notice of dismissal by the employer
- end of agreed period of employment
- wrongful dismissal
- justified premature resignation
- termination of employment by an employee while on maternity or paternity leave, or resignation while in part-time employment pursuant to the Austrian Maternity Protection Act or the Austrian Paternity Protection Act.
The requisite 36 monthly contributions can result from any number of employment relationships with various corporate staff and self-employment provision funds.
As to when you can dispose of your capital depends on the duration of contributions made and of the reason for the termination of your employment. Your entitlement to disposal will be assessed by the Federation of Austrian Social Insurance Institutions. If it is valid, APK Vorsorgekasse AG will automatically be notified.
When you are entitled to dispose of your accrued severance pay, there is no need for you to take any steps; APK Vorsorgekasse AG will automatically send the disposal documents (for a specimen, please click here) to your home address.
If you wish to dispose of your severance pay entitlement, we would ask you to return the disposal form to us within six months. Otherwise, your severance capital will stay invested up to the point when your next entitlement to disposal is due.
In any case, a client’s entitlement is valid
- in the event of retirement, or termination of an employment relationship on reaching the age qualifying for early retirement pension,
- if no contributions to any corporate staff and self-employment provision fund have been paid for five years
- upon his/her death.
Upon the death of the employee, the severance pay capital accrued will be paid out to his/her dependants or will be incorporated into the deceased’s estate.
When you are entitled to disposal, you can choose among these options:
- Continued investment of the capital sum with APK Vorsorgekasse AG.
Any later disposal of the accrued sum is only possible when your next entitlement to disposal is due.
- Transfer to your personal bank account, or by postal remittance (minus 6% income tax).
- Tax-free transfer to the corporate staff provision fund of your new employer.
- Tax-free transfer to a pension fund pursuant to Section 5, Pension Fund Act.
- Tax-free transfer to a supplementary retirement pension scheme pursuant to Section 108 b Income Tax Act or to a corporate group insurance.
On receipt of your written request for disposal, completed in full, the accrued capital will be paid out within the statutory limit of two full months and five working days, starting from the termination of your employment relationship.
We do, however, endeavour to minimise the period between receipt of your request for disposal and effective payment.