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 more important than in the past. The uniform pension fund regulations are already in effect from June 1,
So far, each pension fund had their own rules, and although all of 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, by the different names offered by each pension fund towards the same insurance track, and through the variety of insurance tracks in each pension fund.
The goal of uniformity of the regulations is really a superior goal on the one hand, because the here will be able to choose his pension fund according to accessible parameters like: yields in numerous time ranges, management fees, service and scale of the fund.
On the other hand, uniformity results in a long-term financial product that is a shelf product, and there is absolutely no ability for any pension fund to initiate issues that benefit members in some creative way.
The degree of the member’s insurance policy for disability and survivors depends on three parameters: Chronilogical age of seniority in the member – age admission later means a lesser percentage of coverage; The insured wage from which the allowances are derived from the insurance coverage; The insurance coverage track chosen through the member.
Through the insurance track, it is easy to see how the monthly deposit will likely be divided between the purchase of insurance coverages and the increase in savings. The greater money will likely be diverted to purchasing insurance policy, the larger the insurance coverage it is going to acquire.
This really is to be able to give flexibility to the member, who would like to purchase insurance for disability and survivors, whose cost affects the savings after the period. In contrast to the options that existed before, the conventional regulations could have only 7 tracks.
The insurance policy coverage rates will reduce the coverage received by members who join for the first time with an older age
Moreover, the primary change that might be contained in the uniform policies is the price of coverage for loss of capability to work.
Following the Ministry of Finance instructed the pension funds to decrease insurance policy costs in 2013, it absolutely was now made a decision to raise the cost again . With all the gaps getting around 2x, depending on the se.x of the member, as well as at age enrollment.
The consequence of the increase in tariffs is the fact that joining of any man from the 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 of 30 at a salary of ten thousand NIS chooses the maximum coverage for disability and survivors, a 75% disability track , and 100% survivors (aside from those over the age of 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 old age pension at age 67 on the basis from the savings will be NIS 9,299. If he chooses a track that features a minimum insurance, like: 37.5% disability, 40% survivors, svejpi receive an allowance of NIS 9,719.
Let’s assume that the same member joins for the first time at the age of 48, and even then wants maximum insurance policy coverage. The policy for your disability will likely be only NIS 3,750, and also the coverage for your survivors will likely be NIS 9,200.
What will the colleague do? He will need the business to buy insurance for him that is complementary to the insurer, in order that he can give him the supplement for the coverage. Put 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 having a full cover of 75%.
Currently it is not easy to purchase supplementary supplements for separate policies. Up to now, it has been very common amongst the working population, that the employer has acquired to them “plant ownership incapacity.” This coverage provided a solution both to the insured’s salary in managers’ insurance and also to the insured’s salary in the pension fund.