The aim is to enable Israel Aircraft Industries employees to retire under the current terms, thereby avoiding a loss in their pensions from the pension fund reform.
Hebrew daily “Yediot Ahronot” reports that Israel Aircraft Industries (IAI) is offering a retirement package to employees and executives nearing retirement age. The aim is to enable them to retire under the current terms, thereby avoiding a loss in their pensions from the pension fund reform.
Subsequent to the reform, IAI, which has 13,000 employees, contacted several external financial advisors. IAI allows its employees to use personal pension consultants to examine the viability of immediate retirement so as to avoid being affected by the pension reform.
IAI will apparently offer the service to 700 employees, at a cost of NIS 500,000. The service will probably be offered to women aged 58+ and men aged around 63. Other enterprises are likely to offer a similar service to employees, in order to evade the reform.
IAI stated in response that it was negotiating a pension arrangement before the reform comes into effect with several hundred employees.
Published by Globes [online] - www.globes.co.il - on June 10, 2003