Finance Committee headed by MK Moshe Gafni, Approved the regulations for the supervision of financial services, including the transfer of funds between provident funds.
Under the approved regulations, it was determined that savers in an investment provident fund will be able to move their funds to a new provident fund, adjust the pension product according to its needs and reduce the costs of managing the savings.
It was further confirmed that if they have reached the age of at least 60, savers will be able to transfer their savings from an investment provident fund to an annuity provident fund, in order to receive an annuity only, and thus enjoy the tax benefits provided in the annuity.
The amendment is expected to increase competition and improve savers’ terms. Until the same amendment to the law, it was possible to switch between different provident funds only in the same body in which they are managed, the amendment in fact allows transfer between the various bodies. The provident fund is a long-term savings, which is managed by various provident companies to generate a return. The purpose of lowering the barriers to transition is to enable competition, lower management fees, and improve returns.
The committee’s chairman, MK Moshe Gafni, welcomed the approval of the regulations: “I see this as a positive step, especially in light of the complex days we are in. “Regulations together with regulations in which we did not find public assistance, and now that the separation has been created, we have approved the regulations for the benefit of the saving public.”
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