AUSTRIA - The Austrian insurance companies Generali and Wüstenrot have both won tenders for providing company pensions in Vienna.

Since 2005, Austrian law allows for insurance companies to provide corporate pensions thus providing an alternative for companies to joining a so-called "Pensionskasse".

"We chose this option because it seems safer than joining a Pensionskasse," said Christian Aigner from the association for "Sachwalterschaft, Patientenanwaltschaft & Bewohnervertretung", which provides services and information concerning the power of attorney.

The association decided in 2003 that it wants to provide a funded second pillar pension for its 370 employees. "Insurances offer products that have a lower equity exposure than a Pensionskasse. We wanted to go for a secure option rather than high returns".

Meanwhile, the European Commission has chosen the insurance company Generali to provide supplementary pensions for its staff and delegates in Vienna. The contract has a value of €2.2m. 

By the end of the year, the 25 people eligible to this pension must decide whether or not they want to make use of the offer, a spokeswoman for the commission in Vienna told IPE.