October 12, 2017 / 10:24 AM / a year ago

UPDATE 1-Austrian Constitutional Court upholds Bank Austria pensions law

(Adds UniCredit reaction)

VIENNA, Oct 12 (Reuters) - Austria’s Constitutional Court upheld on Thursday a recent law forcing Bank Austria, a unit of Italy’s UniCredit, to pay more than it had originally planned for shifting staff into the state pension system to save costs.

The move announced by Bank Austria in 2015 applied to 3,300 staff. The bank had originally planned on paying 7 percent of each employee’s last salary before the move, multiplied by the duration of their employment. Austria then passed a law imposing the more common rate of 22.8 percent.

Bank Austria has already made provisions to cover the 790 million-euro ($936.3 million) cost of the higher rate.

“Insofar as the application (to have the law struck down) is admissible, it is not founded,” the court said in its ruling read out by its president, Gerhart Holzinger.

UniCredit said its results would not be affected.

“The full amount has been provisioned and has already been booked as liability and therefore there is no further impact on the P&L (profit and loss) of UniCredit,” it said in a statement. ($1 = 0.8437 euros) (Reporting by Francois Murphy; Editing by Shadia Nasralla, Greg Mahlich)

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