Deputy Legal Advisor of National Insurance on Halat/Maariv
The National Insurance is warning today about financial problems the government body is suffering from - and may lead to the fact that as early as 2036 it will not be able to finance the full rights due to the public according to law.
A three-year report predicting the National Insurance payments predicts that its expenses for the past year will be higher than the income received, and because of this it will be necessary to withdraw money from the savings fund.
From 2030 - the National Insurance is expected to be forced to make an early redemption of part of the fund and use these amounts, estimated at billions of shekels, to complete its full obligations to the public.
In 2036, as mentioned, the fund is expected to be depleted and without additional funding or the return of the funds taken to the state treasury - the National Insurance will not be able to pay its full obligations.
The created report reflects the state of conditions as of the end of 2022. Because of this, Labor Minister Yoav Ben Tzur asked to update the report and include in it the changing indicators following the war in order to get a more accurate picture adapted to the current reality.
National Insurance Institute Ashdod/Reuven Castro
War expenses are divided into two main areas: the first, the payment of benefits to insured citizens, who pay social security on an ongoing basis.
The second - special payments within the framework of government decisions, which will be financed directly by the state treasury, by compensating the National Insurance.
According to the report, the corona crisis caused a reduction in the National Insurance's income both directly from the public and from the state treasury, as well as reducing the rate of the body's investments in bonds.
At the same time, legislative changes from recent years also affected the financial stability of the National Insurance.
Including raising the retirement age for women in 2021, and the disability reform that passed after years without change.
In order to resolve the situation, Ben Tzur called for the establishment of a joint committee between the National Insurance and the Ministry of Finance in which they will discuss the issue and come up with solutions to ensure the continued independence of the National Insurance and the guarantee of continued payments to the residents of Israel who have paid insurance all their lives.
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Ben Tzur/Reuven Castro
"The independence of the National Insurance and the continuation of payments to the residents of Israel are a necessary thing in a moral and reformed society. The public in Israel has paid National Insurance all his life and he wants to go to sleep knowing that if, God forbid, something happens - the National Insurance will be there for him and pay him all the rights he has accumulated over the years," he responded to the report's data Ben Tzur
"I asked all the relevant parties to sit together and try to reach appropriate solutions, and this at the same time as saying clearly that the offset of allowances will not be under my watch. Nursing people, senior citizens, people with disabilities, the unemployed will not be harmed. Over the years, legislative reforms have been passed, billions of shekels are transferred every year - And this is a social, economic and value issue that must be considered in order to ensure its continued existence."
"The National Insurance is a deep-rooted and social body that was established back in the days of Golda Meir to ensure that every person who needs assistance will not be dependent on the mercy of others but will be granted help with full right. This spirit and policy is a law in the State of Israel and it is good that it is so," said the Acting Director General of the National Insurance, Zvika Cohen. "The Corona crisis and the difficult war we are in only sharpens the need for an organization like the National Insurance that provides an answer to the victims of hostilities, the unemployed, senior citizens, those in nursing care, those receiving income support and more.
In a reality where the economic and security situation changes frequently, the citizens of Israel have to live knowing that there is a social body that is there for them and they have paid to ensure this.
The actuarial situation of the National Insurance is an issue that needs to be transparent to the public and the decision-makers in order to make sure that the residents of Israel are insured for many years to come."
Michaela Cohen - spokesperson for the National Insurance
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