The Ministry of Finance estimates that the total value of the illegal pension supplement paid to the Hebrew University's pensioners amounts to NIS 1 billion. Of this sum, NIS 400 million is actuarial liabilities (amounts that the university was due to pay to pensioners who retire in the future), and NIS 600 million has already been paid to pensioners in the past few years, unlawfully.
These payments represent one of six salary components paid unlawfully in the framework of the university's unfunded pension scheme for its retirees that were raised in the course of a hearing that the Commissioner of Wages began in December 2015. At this stage, it has been decided to take action only on the cost of living supplement, as the most significant of the six components.
Ministry of Finance sources estimate that only a small portion of the amount already paid under this heading will be recovered, but point out that the NIS 50 million that will be saved annually as a result of halting the unlawful payment from now onwards will remain as part of the university's day-to-day budget and will be available for financing research and for improving the standard of teaching and for the benefit of the institution's students.
As for the amounts already paid, the Ministry of Finance admits that it does not have the manpower resources to deal with the extent of the problem.
Published by Globes [online], Israel business news - www.globes-online.com - on May 16, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016