Finance Ministry prepares tough reform of Bituah Leumi benefits
The Ministry of Finance is studying the possibility of implementing the recommendations of Professor Eitan Sheshinsky to create a separate fund for old-age and nursing care benefits. According to the proposal, this fund will be…
Assessment
Israel's Finance Ministry is advancing a structural reform that would carve out old-age and nursing care benefits into a separate fund, insulated from the rest of the National Insurance Institute. The core mechanism an automatic balancing trigger would remove political discretion from closing deficits. This shifts risk from elected officials to a formula, raising questions about benefit stability and the government's long-term commitment to social safety nets.