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Divergent occupational pensions in Bismarckian countries: the case of Germany and Austria

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  • Tobias Wiß

    (Hertie School of Governance, Berlin, Germany
    Johannes Kepler University, Linz, Austria)

Abstract

Pension reforms and the changing public/private pension mix of the last decades are well documented. However, a more detailed look at the design of occupational pensions reveals remarkable differences even in countries that are usually treated as similar in the literature. Germany and Austria share many similarities and are having to cope with similar reform pressure. However, the design of occupational pensions varies substantially. Why? In Germany, trade unions are regularly involved in occupational pension schemes and benefits are calculated on the basis of defined contributions (DC), but with minimum return guarantees preventing losses in times of financial turmoil. By contrast, trade unions rarely participate in Austrian occupational schemes. In Austria, pure DC schemes without guarantees resulted in heavy occupational pension cuts during the recent financial market crises. Following the method of difference, the article explains this difference by trade union structure, unions’ strategic thinking and (lacking) reform threats supported by employers.

Suggested Citation

  • Tobias Wiß, 2018. "Divergent occupational pensions in Bismarckian countries: the case of Germany and Austria," Transfer: European Review of Labour and Research, , vol. 24(1), pages 91-107, February.
    • Handle: RePEc:sae:treure:v:24:y:2018:i:1:p:91-107
    DOI: 10.1177/1024258917748258
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    References listed on IDEAS

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    1. Anderson, Karen M. & Meyer, Traute, 2003. "Social Democracy, Unions, and Pension Politics in Germany and Sweden," Journal of Public Policy, Cambridge University Press, vol. 23(1), pages 23-54, January.
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    3. Reinhard Koman & Ulrich Schuh & Andrea Weber, 2005. "The Austrian Severance Pay Reform: Toward a Funded Pension Pillar," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(3), pages 255-274, September.
    4. Obinger, Herbert & Starke, Peter & Moser, Julia & Bogedan, Claudia & Gindulis, Edith & Leibfried, Stephan, 2010. "Transformations of the Welfare State: Small States, Big Lessons," OUP Catalogue, Oxford University Press, number 9780199296323.
    5. Ebbinghaus, Bernhard (ed.), 2011. "The Varieties of Pension Governance: Pension Privatization in Europe," OUP Catalogue, Oxford University Press, number 9780199586028.
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    Cited by:

    1. Anne Skevik Grødem & Anniken Hagelund & Jon M Hippe & Christine Trampusch, 2018. "Beyond coverage: the politics of occupational pensions and the role of trade unions. Introduction to special issue," Transfer: European Review of Labour and Research, , vol. 24(1), pages 9-23, February.

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