The uniform pension fund regulations 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 their own rules, and although all the regulations were quite similar, there were still differences between the two. Moreover, the different insurance tracks in each pension fund could confuse any reasonable person, from the different names provided by each pension fund for the same insurance track, and by the variety of insurance tracks in each pension fund.
The purpose of uniformity from the regulations is actually a superior goal on the one hand, since the for the Hebrew version will be able to choose his pension fund in accordance with accessible parameters like: yields in various time ranges, management fees, service and size of the fund.
On the contrary, uniformity results in a long term financial product which is a shelf product, and there is not any ability for virtually any pension fund to initiate conditions that benefit members in some creative way.
The amount of the member’s insurance cover for disability and survivors is dependent upon three parameters: Era of seniority in the member – age of admission later means a lesser amount of coverage; The insured wage from where the allowances are produced from the insurance coverage; The insurance coverage track chosen from the member.
With the insurance track, it really is possible to determine how the monthly deposit is going to be divided between the purchase of insurance coverages and the rise in savings. The more money will likely be diverted to purchasing insurance policy coverage, the greater the insurance policy coverage it can acquire.
This is to be able to give flexibility for the member, who would like to purchase insurance for disability and survivors, whose cost affects the savings at the end of the period. Contrary to the possibilities that existed before, the conventional regulations will have only 7 tracks.
The insurance coverage coverage rates will decrease the coverage received by members who join the very first time at an older age
Moreover, the essential change that might be contained in the uniform policies is the cost of coverage for loss of capability to work.
Following the Ministry of Finance instructed the pension funds to decrease insurance policy coverage costs in 2013, it was now chose to increase the cost again . With the gaps getting around 2x, depending on the se.x in the member, as well as at age enrollment.
The result of the increase in tariffs is that the joining of any man from the age of 42 north to a pension fund will not buy him maximum coverage for disability and survivors.
As an example – A member who joins at age of 30 at a salary of ten thousand NIS chooses the highest coverage for disability and survivors, a 75% disability track , and 100% survivors (with the exception of those older than 41) is going to be eligible for a disability pension of NIS 7,500 and a survivors’ pension of NIS ten thousand. The previous age pension at age of 67 on the basis of the savings is going to be NIS 9,299. If he chooses a track which includes a minimum insurance, such as: 37.5% disability, 40% survivors, svejpi get an allowance of NIS 9,719.
Let’s assume that the same member joins the very first time at the age of 48, and also then wants maximum insurance policy coverage. The coverage for the disability will be only NIS 3,750, and the coverage for the survivors will 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, so that he can give him the supplement for the coverage. Put simply, the business will invest in a cover of NIS 3,750 in a separate insurance policy for loss in work capacity, in order that he will be insured with a full cover of 75%.
At present it has stopped being possible to purchase supplementary supplements for separate policies. Up to now, this has been very common among the working population, which the employer has acquired to them “plant ownership incapacity.” This coverage provided a solution both to the insured’s salary in managers’ insurance as well as the insured’s salary within the pension fund.