Yesterday, the Finance Committee, headed by MK Moshe Gafni, unanimously approved the regulations limiting deposits to executive insurance. In this context, it was determined that with regard to new joiners, the deposit for managers' insurance will be limited to the part of the salary that exceeds twice the average wage in the economy, so that the part up to twice the average wage in the economy will be deposited into a provident fund for an allowance that is not an insurance fund. During the discussions, the Ministry of Finance presented that managers' insurance causes damage to savers, whose amount of savings during retirement is tens of percent lower than pension funds.
As stated, according to the regulations, "in order to ensure a proper pension at the time of retirement for savers," it is proposed to limit the deposit to "managers' insurance" to the portion of wages above twice the average wage in the economy, so that the portion up to twice the average wage in the economy will be deposited into a provident fund for an allowance that is not an insurance fund. The change will take effect on 1 September.
The Ministry of Finance presented during the discussions that managers' insurance causes damage to the public who save within their framework, and that in the past managers' insurance had certain advantages, and that these are no longer valid.
Wrong? We'll fix it! If you find a mistake in the article, please share with us