The uniform pension fund rules 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 much more important than ever before. The uniform pension fund regulations are already in effect from June 1,
So far, each pension fund had its very own rules, and although each of the regulations were quite similar, there were still differences between them. Moreover, the many insurance tracks in each pension fund could confuse any reasonable person, from the different names provided by each pension fund to the same insurance track, and through the wide range of insurance tracks in each pension fund.
The goal of uniformity of the regulations is a superior goal on the one hand, considering that the for the article will be able to choose his pension fund in accordance with accessible parameters like: yields in different time ranges, management fees, service and dimensions of the fund.
On the other hand, uniformity results in a long term financial product which is a shelf product, and there is not any ability for just about any pension fund to initiate issues that benefit members in some creative way.
The amount of the member’s insurance policy for disability and survivors is dependent upon three parameters: Era of seniority of the member – the age of admission later means a reduced portion of coverage; The insured wage from which the allowances are based on the insurance coverage; The insurance coverage track chosen from the member.
From the insurance track, it is easy to determine how the monthly deposit will likely be divided between purchasing insurance coverages and the rise in savings. The greater money will be diverted to the purchase of insurance policy coverage, the larger the insurance policy coverage it can acquire.
This can be to be able to give flexibility to the member, who wants to purchase insurance for disability and survivors, whose cost affects the savings at the end of the period. Contrary to the number of choices that existed previously, the standard regulations will have only 7 tracks.
The insurance coverage rates will lessen the coverage received by members who join for the first time with an older age
Moreover, the essential change which will be contained in the uniform policies is the expense of coverage for lack of ability to work.
Right after the Ministry of Finance instructed the pension funds to reduce insurance coverage costs in 2013, it absolutely was now decided to raise the cost again . With the gaps moving around 2x, depending on the se.x of the member, and at age of enrollment.
The result of the rise in tariffs is the fact that joining of a man from age of 42 north to some pension fund will never buy him maximum coverage for disability and survivors.
For instance – A member who joins at age 30 at a salary of ten thousand NIS chooses the maximum coverage for disability and survivors, a 75% disability track , and 100% survivors (except for those older than 41) will be eligible to a disability pension of NIS 7,500 as well as a survivors’ pension of NIS ten thousand. The existing age pension at the age of 67 on the basis from the savings will be NIS 9,299. If he chooses a track which includes a minimum insurance, like: 37.5% disability, 40% survivors, svejpi receive an allowance of NIS 9,719.
Let’s think that exactly the same member joins for the first time at age of 48, as well as then wants maximum insurance coverage. The coverage for the disability will likely be only NIS 3,750, as well as the coverage for that survivors is going to be NIS 9,200.
What will the colleague do? He will need the employer to buy insurance for him that is certainly complementary to the insurance company, to ensure that he can give him the supplement for your coverage. Quite simply, the employer will purchase a cover of NIS 3,750 in a separate insurance policy for loss in work capacity, in order that he will likely be insured with a full cover of 75%.
Currently it is no longer easy to purchase supplementary supplements for separate policies. Currently, this has been common among the working population, that the employer has acquired for 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 in the pension fund.