Career Military Service (Israel Defense Forces) Law (Pensions) (Amendment No. 39), 5786-2026

The bill seeks to amend the Career Military Service (Israel Defense Forces) Law (Pensions). The primary change concerns the calculation and payment method of the "bridging pension" for soldiers who served in the career military. Eligibility and amount: The bridging pension will be paid to soldiers who retired from career service and reached early retirement age (currently 60, with a proposed change in accordance with the Pension Law). Eligibility age: Officers who retired by July 1, 2023, and reached age 41; non-commissioned officers (NCOs) who retired by July 1, 2023, and reached age 46. All retirees will receive the pension until age 67. Pension amount restrictions: The pension shall not be less than a specific amount to be determined by regulations, based on the amount expected from the provident fund. In certain cases, if the expected provident fund pension is lower, the bridging pension payment will continue until age 67. Index adjustments: The bridging pension will be updated annually according to the Consumer Price Index. Additional adjustment mechanism: A new mechanism is proposed to adjust the bridging pension amount. The mechanism will examine the difference between the average of pensions actually paid and a "reference amount" (defined as 17,360 NIS as of January 1, 2021). If a positive difference is found, the IDF will take organizational steps to reduce it. If the difference persists, a reduction in pensions will be implemented, not exceeding the pension update rate. Bridging pension for survivors: It is proposed that in the event of the death of a retired soldier, a bridging pension will be paid to their survivors for a period to be determined by regulations. Special compensation track: It is proposed to allow new soldiers to choose a special compensation track instead of the bridging pension. This track will allow for increased compensation during service but will require waiving eligibility for the bridging pension after service. The soldier may revoke their choice within six months and return the funds received. Additional changes: Arrangements regarding retirement from career service: It is proposed to amend the Economic Efficiency Law to allow greater flexibility in transferring retirement quotas between years and between officers and NCOs. The Chief of General Staff will be able to transfer up to 10% of the retirement quota from year to year, and to convert quotas between officers and NCOs (reducing the NCO quota will allow for increasing the officer quota, and vice versa, subject to limitations). Definitions: It is proposed to update existing definitions in the law, such as "early retirement age," "the committee" (referring to a joint committee of Knesset committees), and "the index." Effective dates: The law will enter into force on the day of its publication, unless otherwise stated. Certain provisions, such as those concerning the bridging pension, will apply to soldiers who served before the commencement of the law, as well as to payments made previously. Index adjustments will begin in January 2026. The new pension adjustment mechanism will be implemented starting January 2026. Provisions regarding the transfer of retirement quotas will apply starting in 2026.

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