A demand for an increase in senior citizen benefits

 To the Prime Minister, Minister of Finance, Minister of Welfare, Minister of Social Equality, State Comptroller, Chairman of the Knesset Committee on Welfare.

   

Your Honors,

NATIONAL SOCIAL CONTRACT

Protest Group for Increasing the Senior Citizen Benefit (formerly Old-Age Benefit).

 

Who are we?

We, the members of the Protest Group for Increasing the Old-Age Benefit, have set ourselves the goal of correcting the decades-long injustice inherent in the systematic erosion of the Old-Age Benefit or, as it is known today, the Senior Citizen Benefit.

The data

Senior citizens have been receiving the same benefit of NIS 2,400 for 20 years— including a maximum seniority supplement of 2% for each year of work X 25 years, provided they have accrued full rights, according to Bituach Leumi (Israel's equivalent of Social Security- also known as Kitzvat Zikna) . As of January 28, after all the increases, seniors recently received an increase of 5.3% (about an additional NIS 120); the allowance is now NIS 2,520.

On April 1, the salary of Members of the Knesset (MK's) jumped to NIS 47,584.

The salary of government ministers jumped to NIS 53,257.

In other words, senior citizens rely on a shameful allowance amounting to less than 5% of the salary of an MK! (Not to mention that the minimum wage is just over 10% of the salary of an MK…).

Background

The Bituach Leumi Old-Age Benefit Law states that every citizen in the State of Israel must pay a fixed amount, based on his/her salary, throughout their adult life and their working years.

This payment is intended to guarantee each person a reasonable standard of living, similar to the one to which s/he has become accustomed, if and when his/her income stops, whether because of retirement or for other reasons.

Over the years, Israeli governments have eroded the Old-Age Benefit, including changing the method of linkage from the average wage to the Consumer Price Index (CPI).

This change meant that the allowance would not provide minimum subsistence (see table above).

Where is the money that was paid to Bituach Leumi by Israeli citizens all during their working years?

Under the auspices of several governments, the Budget Division of the Ministry of Finance used the Old-Age Benefit funds, which were supposed to ensure our well-being in our retirement years, for other purposes. Thus, the fund intended to ensure the social security of senior citizens has been drained. The Bituach Leumi Law has become devoid of all meaning and has failed in its purpose.

How did this happen? Because of a budget deficit some 20 years ago, the Ministry of Finance asked Bituach Leumi to lend it money from workers' savings. This loan became a permanent source of income for the government, and since 2003 hundreds of billions of shekels have been systematically transferred to the Budget Division.

Throughout these years, a bond of silence on the subject has been shared by both members of the Knesset and government ministers.

The verse, "Do not cast me away when I am old" (Psalms 71:9) has lost its meaning and has been trampled underfoot!

Our demands

We, a community of 1,250,000 retirees, led by the Protest Group for Increasing in the Old-Age Benefit, demand to enact a Senior Citizen/Old-Age Benefit Law 2023, including the following stipulations:

1. A National Old-Age Benefit for all citizens who have accumulated their full rights during their years of work will start at the level of the minimum wage. As of April 1, the minimum

wage is NIS 5572.

2. The allowance will then be fully linked (100%) to the average salary in the economy— exactly the same linkage that exists for members of the Knesset.

3. Complete disconnection of the Bituach Leumi Fund from the Ministry of Finance. The fund will be placed under the auspices of a public figure whose integrity and incorruptibility are indisputable, and who will be subject to oversight by the state auditor. This person will ensure that the Old-Age Benefit funds are directed only towards the purpose for which they were intended.

4. Disability allowance

The situation today: Upon reaching retirement age, a person who receives a Work Disability Benefit must choose between the Disability Benefit and the Old-Age Benefit. There is no duplication of benefits, as is the case with IDF-disabled persons. A disability is a disability, and it does not matter if it is a work disability or an IDF disability. To be perfectly clear, we demand full equality of rights between the IDF-disabled and all other disabled persons.

5. The funds taken from Bituach Leumi and transferred to the Ministry of Finance will be restored to the senior citizens—under conditions to be determined through negotiations between the parties—within a period of four to six months from the date of the establishment of the new government. The negotiations with the Ministry will be managed by an apolitical external body. The restitution of the amount in its entirety will be carried out within a maximum of two years.

6. The Survivor's Benefit for widowers will be equal to the Survivor's Benefit for widows.

7. Electricity and water bill payments will be reduced by 50% for a senior citizen who does not work for a living. Senior citizens who continue to work will pay the full water and electricity payments until they reach the age of 72, or until they stop working, whichever comes first.

8. As for property tax payments, a 50% discount will be given to the senior citizen's actual residence, on an area not exceeding 100 square meters. Senior citizens who continue to work will pay the full amount of the property tax, until they reach the age of 72, or until they stop working, whichever comes first.

9. Senior citizens will travel by public transportation free of charge.

10. Legislation of a free healthcare law for senior citizens who do not work, and cancellation of deductions from the Old-Age Benefit. Senior citizens who continue to work will pay for medicines until they reach the age of 72, or until they stop working, whichever comes first. Senior citizens who do not work will be exempt from payment.

11. Senior citizens who continue to work will not be fired because of their age; dismissal for this reason will constitute a criminal offense.

12. Regardless of income, senior citizens will be entitled to free nursing care at a recognized institution or at home, subject to the decision of a geriatric physician and the discretion of the senior citizen.

 

Sincerely,

 

 אורי פלום              054-4725676           Uri Flum 

                         [email protected]

    יגאל גרינשטיין        050-7534271        Igal Greenstein 

                                     [email protected]

    גיורא חרלופסקי      052-3820050         Giora Harlopski

                      [email protected]

    עו"ד נירה סטופאי שוורץ  052-4714417    Nira Stupay Schwartz' Adv.

                                 [email protected]

    עו"ד יצחק בורובסקי        053-9180073  Yitzchak Boorovsky, Adv.

                   [email protected]

    054-5842944                אוה שובל      Eva Shuval                                   

 

 

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