“Heartless decision”

Severance pay: Heirs left empty-handed

Sabine T. passed away shortly before her retirement. Her severance pay is retained by the employer, the ÖGK.(Bild: Krone KREATIV/Vienna Press/Andreas Tischler, zVg. (2))

A mother died just before her retirement—but the health insurance fund where she worked won’t pay her children a single cent of her severance pay. The amount in question is 70,000 euros.

Sabine T., a resident of Vienna, was employed by the ÖGK for 43 years, but two months before her retirement, the contribution auditor succumbed to cancer. As a result, she did not receive the severance pay that would have been due under the old regulations.

Added to the grief of the bereaved is the financial shock. After her death, her daughter (36) received a letter from the ÖGK stating: Severance pay amount: 70,295.36 euros. In their own words, Nicole W. and her brother Walter (38) were almost “blown away.” But they won’t see a single cent of it!

From 70,000-Euro Joy to Disillusionment
The swift disillusionment: “After settling the estate with the notary, I was informed that the ÖGK is withholding the money because there is no legal claim—since my mother was neither married nor in a registered partnership at the time of her death and had no children who are still dependent on her,” Nicole W. is stunned. Her mother’s husband and the children’s father passed away when Nicole and her brother (38) were still young. Both are self-sufficient and have families of their own, but they would have been overjoyed to receive 70,000 euros.

The proof of entitlement you received was designed in this format for internal processes and was not intended for transmission to relatives.

Aus dem Schreiben der ÖGK

Notice of settlement sent in error
The surviving relatives requested a goodwill solution. Then they were even more astonished. Because the notification regarding the severance pay amount had been sent by mistake. “The payment statement for the month of October 2024 that you received was designed in this format for internal processes and was not intended for transmission to relatives,” the letter states, among other things.

And: “Due to the current economic situation, we must inform you that a goodwill solution is unfortunately not possible.” The 36-year-old is disappointed by the decision and criticizes the legislature: “Even if it’s legal, I find the decision heartless.”

How can it be that a marriage or a registered partnership is worth more than one’s own children, even if they are no longer dependent?

Nicole W., Tochter der Verstorbenen

No legal claim to severance pay
But the ÖGK remains firm. This is because severance pay entitlements are transferred only to those legal heirs whom the deceased employee was legally obligated to support and who were financially dependent on her. That does not apply in this case.

“The old severance pay is an employer benefit and not a refund of contributions made by the deceased employee,” the ÖGK stated in response to a query from “Krone.” “We are obligated to comply with statutory and collective bargaining agreement provisions when using insured funds.”