Less pension – damage flashes at the Constitutional Court

The Constitutional Court (VfGH) dismissed Heinz Schaden’s complaint. It was about the revocation of his political pension after his conviction for infidelity. The decision of the highest court could also have an impact on the civil law disputes with the city of Salzburg in the same case.

The former SPÖ mayor was convicted of breach of trust in July 2017. As a result, the pension granted for the work as mayor was no longer applicable and was re-assessed in accordance with the provisions of the ASVG. This was essentially confirmed by the Salzburg Regional Administrative Court. In his complaint, Schaden relied on the unconstitutionality of the provisions of the Salzburg Law on Payments 1992.

The Constitutional Court, however, considered the re-assessment to be relatively qualified. He justified this with the fact that this is linked to an actually imposed penalty in a certain amount and is based on the duration of the pension contributions actually paid.

The supreme court could not recognize an unobjective “disadvantage” of a retired politician compared to active politicians or active officials. In addition, Schaden has voluntarily opted into the system that now applies to him.

It is unclear how it will proceed under civil law. The city of Salzburg is now recovering the legal fees in the case of damage. A settlement was agreed in September, which can, however, be revoked until April. At the time, Schaden said that he could only repay the agreed 250,000 euros if the Supreme Court would decide in his favor.

In any case, it remains to be seen how the dispute over legal fees will continue. According to his own statements, it will be difficult for damage without his full pension to raise the agreed amount of 250,000 euros.

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