ABSTRACT
In common with most EU and OECD countries in recent decades, Austria has de clared its agreement with two basic principles of pension reform - but it has not yet implemented them: first, what I call lifetime indexing, a closer link between pension entitlements and higher life expectancy, an automatic integration of longevity gains into the pension formula (Pensionsautomatik)\ and secondly, higher equivalence or contributivity, a closer link between contributions and benefits in old-age entitlements (more Beitragsgerechtigkeit). The second principle translates itself into actuarial fairness/neutrality regarding the bonus/malus for working longer or early exit.
