Section 21 (State Service (Benefits) Law) of the Economic Efficiency Bill (Legislative Amendments to Achieve Budgetary Goals for the 2025 Budget Year), 5785-2024 [Chapter VI]

The law changes the method for updating the determining salary of retirees, which affects their pension benefits. Previously, a retiree's determining salary was updated in accordance with changes to the salary of an active employee in the same grade. The proposed change allows the Minister of Finance, by order, to determine that a retiree's determining salary will be updated in accordance with new collective agreements, even if these changes no longer affect the salaries of active employees. This will apply to retirees who retired before the date these agreements were signed. Additionally, the law extends the statute of limitations for filing a benefit claim for survivors of state employees from two years to four years from the date the cause of action arose. The law also expands the authority of the Minister of Finance to determine by order how the determining salaries of retirees who retired from the public service or the Israel Broadcasting Authority will be updated, in accordance with new collective agreements. This will apply to retirees who retired during certain periods, and will also allow for the determination of linkage differential payments for previous periods. Finally, the law adds a list of new grades to the Sixth Addendum of the State Service (Benefits) Law, and expands the authority to determine how the determining salaries of IDF retirees will be updated, in accordance with newly signed agreements.

Source: חומר רקע