Senior public sector managers entitled to pensions worth NIS 10m

The generous pensions packages are a result of the senior managers' salary structure.

Thousands of senior employees in management grades in the government sector, in the Ministry of Finance and Bank of Israel among other places, are entitled to pensions packages that could reach as much as NIS 10 million, a "Globes" investigation has found. Figures to be revealed in the newspaper tomorrow show that the generous pensions packages are a result of the senior managers' salary structure.

While regular public sector workers, whose salary structure the Ministry of Finance was instrumental in formulating, receive various pay supplements to increase their gross salaries, their salaries for pensions purposes remain very low (sometimes 50% of the gross salary). The senior managers on the other hand had personal contracts that ensured that all, or almost all (90-100%) of their final gross salary would be the determining salary for pension purposes.

So veteran senior managers who have reached monthly salaries or NIS 50,000 or more in the public sector will be entitled to a gross pension of NIS 35,000 monthly. At a rough estimate, this is a pension package that could total as much as NIS 10 million.

These pensions packages, all of them at the taxpayer's expense, are especially offensive in the light of the criticism from the Ministry of Finance and the Bank of Israel of IDF pensions and their demands for streamlining and reform in the public sector.

Published by Globes [online], Israel business news - www.globes-online.com - on March 20, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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