Pension Fund Regulations – More FAQ’s..

Pension advice at the bank – exactly how much does it cost as well as whom? The savers’ pension portfolio is generally managed by an insurance agent. When pension counseling is conducted at the Bank, the pension portfolio actually goes to the bank.

Thus, the commissions received to date by the insurance broker from the insurance firms and pension funds are transferred to the lender, and his awesome income from your for the Hebrew version is based on this.

It was recently published that this average annual income of the Bank from each pension counseling client is NIS 900, an amount that over the years can accumulate to thousands of shekels, as well as the numbers increase because the customer’s pension savings are greater.

Here is a numerical example of the fee that lies behind “free bank advice”: A pension fund member with a fixed monthly premium of NIS 2,000 monthly (based upon a monthly salary of NIS ten thousand) is anticipated to pay the financial institution from age of 30 to age of 67 a commission of approx. NIS 95 thousand.

Pension advice at the bank – what else is very important to know? The Bank are unable to establish any connection with the employer and manage the pension portfolio for your individual employee, rather than the insurance professional. Because of this, there is absolutely no exploitation of economies of scale for that employer and also the employee, and also the employer actually added another “insurance agent” to himself, who is the bank’s pension advisor.

This addition only burdens operational and complicates the collection report. This is why banking institutions currently operate in a relatively small market share, handling very little managers insurance plans or any other insurance plans, and most of their clients are self-employed.

Therefore, customers who are curious about objective , professional and low-cost pension counseling should consult a completely independent pension counselor who collects a 1-off fee for that consultant himself, and will not receive any commissions through the investment houses as well as the insurance providers.

Since January 2008, there is a mandatory deposit for all employees, starting from the end of three months of employment or six months of employment, according to whether or not the employee includes a pension plan or has reached a company without any pension savings.

In the event the employee has pension savings, then your employer will deposit the very first option retroactively, and in case the employee is employed right at the end of the season, then by December 31 of the year, whichever is earlier.

This case leaves the business and employee relatively limited time to behave on the matter. We have often heard about many employees who failed to report to the employer they had a pension plan even though 90 days right from the start in the employment, or knew they had but did not know who the pension manufacturer was and did not make a decision on svejpi identity in the pension producer.

In addition, employees with complex plans who have not even agreed using the insurance agent as well as met with him, but have not decided on the mix of their pension portfolio, have previously reached 3 months from the date of employment, however the employer fails to know where you should deposit.

So that you can address this issue, default agreements were signed through the employer with one or some other pension manufacturer. Many employers, in particular those with high turnover and turnover, used default agreements so that you can transmit lists of workers who had not yet received a decision concerning the identity in the pensionary manufacturer, thereby complying using the provisions from the extension order for compulsory pension.

These agreements, insofar because they were performed with the assistance of a specialist entity, were with a service specification, so as that this employees receive good quality service, in the accessibility from the marketers and then in the professionalism of the pension marketing meetings that took place each case after the joining.