The Old Pension Fund group, which manages NIS 125 billion in assets, is undergoing a complete structural overhaul to improve efficiency and transparency, more than three years since it was taken out of the hands of the Histadrut.
"The restructuring of Israel's largest pension group is a strategic process of highest importance to pensioners and fund members," said Yael Andoran, manager of the pension funds. "The process will improve efficiency, transparency and trust in the system."
In 2003 the Treasury capital market supervisor removed both old and new pension funds from Histadrut control due to numerous cases of mismanagement and a bloated actuary deficit of more than NIS 100b.
Under the new structure, the eight old pension funds - including Mivtahim, Makefet, Nativ, Hadassah and Egged - will be united into a single cooperation structure.
The new organizational structure of the pension funds will consist of four divisions: the pension division, the investment division, the finance division and the "members" division, which will focus on the alignment of the new service. All investment departments will be united into one single division, which will manage NIS 125b., of which NIS 30b. is unrestricted investments.
The eight funds pay out pension entitlements to some 215,000 pensioners in Israel.