"Atudot" general manager: The reform instituted by the Ministry of Finance has so far failed.
The dispute between the Ministry of Finance and the Histadrut on the subject of pension funds is creating a confidence crisis on the part of the public towards the funds, said "Atudot" pension fund general manager Ronen Tov today (Monday).
In a meeting with salesmen, Tov added that the public fears retroactive changes in retirement terms, which will harm its savings. According to Tov, the reform instituted by the Ministry of Finance in the pension fund market has so far failed, and thus endangers the ability to function and the future of the funds.
Tov said that in ’97 pension fund assets continued to show a slowdown in growth, which reached 3% compared to 6% last year and 9% in ’95. According to him, the slowdown in growth is due to non implementation of the government’s reform in the pension fund market, to ensure free competition in the sector.