Pension funds are a type of pension savings instrument that enables savings for retirement together with insurance coverage in case of death or incapacity.
The state encourages deposits in pension funds through tax breaks for depositors and through the Mandatory Pensions Law, which requires every employer to deposit for its employees a minimum rate of pension money pursuant to the law. New comprehensive pension funds even have an advantage in the form of investment in designated guaranteed yield bonds.
Psagot manages both new and old pension funds. The management of investments of the pension funds’ assets is carried out through in-depth and regular research by Psagot’s research departments, with the assistance of external Israeli and foreign parties.
New Pension Fund
Psagot Provident and Pension Funds Ltd. manages the comprehensive pension fund, Psagot Pension Makifa, which offers savings on the basis of the chosen insurance plan, and Psagot Pension Clalit, which allows additional financial deposits beyond the ceiling set for the Makifa Fund, and increases the future pension.
Psagot’s pension funds offer a number of insurance plans and several investment instruments in order to allow every saver to set the optimal type of savings for his or her needs.
Old Pension Fund
In 2010, Psagot won the tender to acquire the senior pension fund HA.A.L. Psagot has been managing the fund since March 2010.
The pension plan of HA.A.L.
HA.A.L. Pension Fund Ltd. has two pension plans:
• Plan A – based on fixed accumulated rights of 2% a year of the policyholder’s salary
• Plan B – based on a balance at the individual level for accumulating pension installments, also known as a “gift” plan