Harel Insurance Investments Ltd. (TASE: HARL) and Menorah Mivtachim Holdings Ltd. (TASE: MORA) have won the Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) pension tender. “Globes” first reported six weeks ago that the two companies were likely to win the tender.
The Teva pension tender is expected to strongly affect Israel’s pension market in the years to come. The pension funds of Israel’s top five insurance companies participated in the tender. Market sources said the tender’s winners will grant 5,000 Teva employees in Israel substantial rebates amounting to 5% of the premium, out of the mandated maximum management fee of 6%, and up to 0.25-0.3% of the accumulated assets, out of the maximum management fee of 0.5%, for a period of 19 years.
The Teva pension tender is one of the largest published in recent years. 3,000 Teva employees are covered by new pension funds (founded after January 1, 1995), and the company hires 1,000 new employees a year. Until now, Teva employees were covered by Menorah’s New Mivtachim Pension Fund and 700 employees were covered by the New Makefet Pension Fund owned by Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL).
The Teva pension tender is very important for Israel’s pension market. As “Globes” first reported in January, Teva decided that payments to pension funds, up to a predetermined ceiling, would be made directly through Hilan Tech Ltd. (TASE: HLTC).
Published by Globes [online], Israel business news - www.globes.co.il - on June 6, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007