Granit is Rewarded for its Last Decade’s Toil:
Shohat Committee Pension Funds Rights to Divorcees
On March 2010, Shohat Committee concluded its discussions about the rights of spouses in the family pension plan, and submitted a governmental legislation proposal that will provide an answer to a problematic situation known too well to several divorcees who depend on the willingness of their ex-spouse pension owner [the register associate] to share the family pension with their spouses when they come to realize their rights.
The worth situation occurs when regardless of the willingness of the ex-spouse to share the pension as part of the divorce agreement, and even when the agreement was confirmed by the courts, the divorcee would find later, that in case of the associate’s demise, the agreement is null and void. The pension laws overcome confirmation by court, since according to pension rules, on the demise of the associate, a divorcee no longer counts as a survivor and looses her/his rights for her/his share. Therefore, a divorcee can loose her/his main retirement income source.
The majority victims of this rule are women, because during shared life, women usually accumulate less pension rights.
Granit Association, who initiated a previous law to share the pension simultaneously with the finalization of the divorce, and phrased it in cooperation with Na’amat organization and managed to pass it in preliminary call together with MPs Hayim Oron, Gideon Sa’ar & Menahem Ben-Sason.
Due to this legislative proposal, the State decided to appoint the Shohat committee. However, the proposal of the Shohat committee differs from the initial proposal of Granit Association.
The compromise reached by the Committee comprises three major achievements:
- The new funds will be designed on the principle that the division of the pension will be made on the day of the divorce finalization.
- In old and in-built budgetary pension, divorcees will not loose their share in the family pension upon the death of the previous spouse, [the associate] if he/she passed on when still actively employed.
- The previous spouse will be eligible for pension only if he/she lived with the associate for a period of 10 years minimum**.
In all the cases in which agreement was signed or a verdict of sharing pension rights was decreed, the law will be applied retroactively ***
- Everything above mentioned refers to both male and female.
** Only from the date the associate is suppose to reach retirement
*** This section does not fully compensate the spouse; it was reached as a compromise to prevent delaying the rights of several women whose forthcoming old age income is in serious danger to date.