1. MauriceB@bacs.co.il
* Max contribution to a Comprehensive “new” pension fund: 20.5% of twice the national average salary (= 3,880 ILS for 2016)
Retirement Contribution Uplift Chartflow
Amendment 16 - 2016 Regulation Update
Pre 1995 ("old") Pension
Funds In Deficit
The new
requirements
meet the existing
contribution rates
- no adjustment
required.
Gilad pre-1995 ("old")
Pension Fund
Aggregate contribution
rate 17.5% remains
unchanged. Retirement
savings contribution
rate increased by 0.5% ;
severance pay
contribution rate
reduced by 0.5%
meeting
required
Post 1995 ("new") Comprehensive and
Supplementary Pension Funds and Old no-deficit
Pension Funds
Increased contribution rates
(subject to the ceiling*) in a
New Comprehensive Pension Fund
When adjusted
contributions exceed the
ceiling*
An automtic transferof excess
contributions (above the ceiling*) are
alloted to a suplementary fund with
reduced risk cover and reduced tax
concessions.
meeting
required
When adjusted
contributions do NOT
exceed the ceiling*
Standardized contribution
rate adjustment
Managers insurance ("Bituach Menahalim")
Policies issued pre
06/2001
Adaptation and
adjustment
according to each
insurer
Policies issued post
06/2001
Standardized
policy
adjustments for
all insurers