חוק הפיקוח על שירותים פיננסיים (קופות גמל) (תיקון מס' 16), התשע"ו-2016Law on Supervision of Financial Services (Pension Funds) (Amendment No. 16), 2016 · automatic translation · suggest a correction

Official summary of the law (Knesset)

The Supervision of Financial Services (Provident Funds) Law (Amendment No. 16), 2016 (hereinafter – the Amendment), was passed in second and third reading on 13 June 2016. Under the Amendment, if a condition was set between an employee and employer whereby the deposit rate, excluding the severance pay component, to a provident fund stands at a certain percentage of the employee's salary and also includes payment by the employer for the purchase of loss-of-working-capacity insurance, while the deposit rate to a different type of provident fund stands at a lower percentage – such a condition shall not be deemed a prohibited condition under Section 20(a) of the Supervision of Financial Services (Provident Funds) Law, 2005 (hereinafter – the Law), provided that the employee shall be entitled to a minimum deposit rate of at least 6.25% from 1 July 2016 until 31 December 2016, and with respect to the period from 1 January 2017 onward – a deposit rate of not less than 6.5%. The Amendment's effective date was set as 5 February 2016 – the effective date of Amendment No. 12 to the Law, which established a prohibition on an employer conditioning payments to a provident fund on behalf of its employee and the deposit rate, insofar as such a condition is made.

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