The tender is worth NIS 1 billion in premiums.
Menorah Mivtachim Holdings Ltd. (TASE: MORA) has won the Ministry of Defense retirement tender, which is worth an estimated NIS 1 billion in premiums. Menorah will provide monthly pensions to ministry retirees under its early retirement plan.
Menorah owns Israel's largest pension company, New Mivtachim Pension Fund Ltd.
The initial premiums from the Ministry of Defense are estimated at NIS 300 million for 350 retirees, and will increase to NIS 1 billion as the number of retirees grows to 1,000. The Ministry of Defense will pay Mivtachim a one-time payment for each retiree, which will be used to buy an insurance policy that will enable the retiree to receive a monthly pension.
The pension payments, including the balance payment and a linkage mechanism are subject to the Government Service Pensions Law.
Published by Globes [online], Israel business news - www.globes-online.com - on September 9, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008