Always check!

Have you considered whether you work in an organized company with good working conditions? Are you confident that everything is going well because you are employed by a large and stable company? That assumption may be incorrect

Unfortunately, I have encountered several cases over the years where individuals in key positions within companies, including CEOs of banks and startup companies, failed to have funds deposited into their retirement accounts as required by law.

For instance, there was a situation involving a woman in a senior position at a well-known bank who went on maternity leave twice, but during both periods, funds were not deposited into her pension plan as required.

These instances highlight the importance of personal responsibility. Customers must pay attention to factors such as regular deposits, which can be verified through deposit reports or replenishment reports (דוחות היזון) obtained from the insurance company. Clients should also be mindful of management fees and the chosen investment strategy.

Some individuals still contribute to a pension fund with high management fees, up to 0.5% of the accumulated amount and 6% of the deposit. However, the majority of people overlook their investment path within the pension plan and the training fund. As a result, they may be surprised by market fluctuations and find themselves with less money than anticipated for important purposes like purchasing a house.

Upon termination of employment, clients should ensure they receive all their entitled benefits from the employer. This includes a termination letter and Form 161. It is recommended to contact an assessor and request the maximum exemption for compensation, which currently stands at 13,310 NIS.

Furthermore, it is essential for clients to submit a signed form to a temporary risk entity at the end of their job, in order to maintain active insurance coverage for their pension plans until they secure new employment that will continue the deposits. This is crucial for maintaining coverage in case of loss of working capacity or loss of life. It also ensures that deposits in the new job begin immediately, without a waiting period of six months.

Clients should also verify that their group health insurance plan continues privately without requiring a new health declaration. This eliminates the need to purchase a new health plan, which often involves a re-certification period ranging from three months to a year.

In one particular case, I encountered an individual who was entitled to a training fund as part of their employment contract. However, they only remembered to claim these funds after 20 years had passed, and part of the claim was already time-barred.

Therefore, I strongly urge you to seek the assistance of a professional and ensure that you receive all your rights both during and at the end of your employment.