חוק תשלום קצבאות לחיילי מילואים ולבני משפחותיהם (תיקון מס' 7), התשע"ו-2016Law of Payment of Pensions to Reserve Soldiers and Their Family Members (Amendment No. 7), 2016 · automatic translation · suggest a correction

Official summary of the law (Knesset)

The Reserve Duty Soldiers and Their Families Pension Payment Law, 2002, was enacted against the background of a gap that had formed between reserve duty soldiers and career servicemembers, regarding payments given in the event of injury or death due to service. The Law establishes that, in addition to the benefits given to reserve soldiers injured during their service and to their family members by virtue of the rehabilitation laws, an additional pension shall be paid to them, if they did not have pension and insurance arrangements that addressed this. Under the old calculation method, in the first stage the soldier's salary was checked for compliance with the salary ceiling set in the Law, and if his salary was higher than it, it was reduced to this ceiling. From the amount of the ceiling, the amount that the soldier or his survivors were entitled to from a provident fund was deducted, and accordingly the final pension amount was determined. This calculation method harmed those with high salaries (above 43 thousand NIS per month), since the entitlement amounts from the provident fund were offset against the salary ceiling, and not against their actual salary, which was higher. The amendment to the Law changed the calculation method, so that now first the amount that the reserve soldier or his survivors are entitled to from the provident fund is deducted from the salary, and only afterward is the remaining amount reduced up to the salary ceiling set in the Law. This amendment benefits those with high salaries, but does not harm those earning lower salaries. The amendment also applies to cases that occurred in the past, but only to payments to be given from May 2016 onward. An additional amendment in the Bill concerns the date of pension payment, and establishes that the first pension payment will be paid starting from the first month after the month in which the cause for the pension arose. This differs from the situation that prevailed before the amendment to the Law, in which the first pension payment was paid starting from the second month after the month in which the cause for the pension arose.

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