The uniform pension fund regulations usually are not uniform for all, or the relationship between the uniform regulations of the pension funds that came into force on June 1, 1818, and between coverage and disability, is a lot more important than ever before. The uniform pension fund regulations are already in effect from June 1,
Up to now, each pension fund had its own rules, and although all the regulations were quite similar, there was still differences between the two. Moreover, the many insurance tracks in each pension fund could confuse any reasonable person, through the different names given by each pension fund for the same insurance track, and by the variety of insurance tracks in each pension fund.
The purpose of uniformity in the regulations is actually a superior goal on the one hand, because the for the Hebrew version can choose his pension fund based on accessible parameters such as: yields in various time ranges, management fees, service and size of the fund.
On the other hand, uniformity produces a long term financial product that is a shelf product, and there is not any ability for any pension fund to initiate problems that benefit members in certain creative way.
The degree of the member’s insurance cover for disability and survivors is determined by three parameters: Age of seniority in the member – age admission later means a lower portion of coverage; The insured wage from which the allowances are based on the insurance policy coverage; The insurance track chosen through the member.
From the insurance track, it really is possible to figure out how the monthly deposit will likely be divided between the purchase of insurance coverages and the increase in savings. The better money will likely be diverted to the purchase of insurance coverage, the higher the insurance coverage it can acquire.
This is in order to give flexibility to the member, who wishes to purchase insurance for disability and survivors, whose cost affects the savings after the period. Contrary to the possibilities that existed before, the typical regulations may have only 7 tracks.
The insurance policy coverage rates will reduce the coverage received by members who join the first time with an older age
Moreover, the essential change that will be contained in the uniform policies is the expense of coverage for loss in capacity to work.
Following the Ministry of Finance instructed the pension funds to lower insurance coverage costs in 2013, it had been now decided to raise the cost again . With all the gaps moving around 2x, depending on the se.x from the member, as well as at age of enrollment.
The consequence of the increase in tariffs is that the joining of the man from age of 42 north to a pension fund is not going to buy him maximum coverage for disability and survivors.
As an example – A member who joins at age 30 at a salary of ten thousand NIS chooses the highest coverage for disability and survivors, a 75% disability track , and 100% survivors (except for those older than 41) is going to be entitled to a disability pension of NIS 7,500 as well as a survivors’ pension of NIS 10,000. The existing age pension at age of 67 on the basis from the savings will likely be NIS 9,299. If he chooses a track that includes a minimum insurance, including: 37.5% disability, 40% survivors, svejpi receive an allowance of NIS 9,719.
Let’s assume that exactly the same member joins the very first time at age 48, as well as then wants maximum insurance coverage. The coverage for your disability is going to be only NIS 3,750, as well as the coverage for your survivors is going to be NIS 9,200.
What will the colleague do? He will want the employer to buy insurance for him that is certainly complementary to the insurer, to ensure that he will give him the supplement for the coverage. Quite simply, the employer will purchase a cover of NIS 3,750 in a separate policy for loss of work capacity, to ensure that he will be insured with a full cover of 75%.
Currently it is no longer possible to purchase supplementary supplements for separate policies. To date, it has been common one of the working population, in which the employer has acquired to them “plant ownership incapacity.” This coverage provided an answer both towards the insured’s salary in managers’ insurance and also to the insured’s salary within the pension fund.