Pension and Provident Fund Contributions While on Bed Rest (Right)

From All Rights (Kol-Zchut) (www.kolzchut.org.il)

Introduction:

A pregnant employee on bed rest is entitled to have her employer continue contributing to her pension
If her employer had the practice to make contributions to an advanced study fund (קרן השתלמות)) or to any other provident fund for the employee, the employer must continue making these contributions while the employer is on bed rest
This entitlement only applies if the employer worked for the employer for at least 6 months prior to being pregnant and paid her provident fund contributions
For more information, see section 7a of the Womens' Employment Law

A pregnant employee on bed rest is entitled to have her employer continue contributing to her various provident funds (pension, study funds, provident funds) even during the period she is on bed rest.

Who is Eligible?

  • An employee is entitled to have her employer continue contributing to her provident funds while she is on bed rest if she meets the following three conditions:
  1. She is entitled to a Bed Rest Benefit from the National Insurance Institute.
  2. Her employer's practice is to pay contributions to her provident funds (provident fund, pension fund, manager's insurance, advanced study fund (קרן השתלמות)) prior to her being on bed rest.
  3. She worked for the employer for at least 6 months prior to becoming pregnant.

How to Claim It?

  • Employees entitled to a Bed Rest Benefit must submit their provident fund contributions to the employer every month.
  • Within 7 days from payment of the employee's contributions to the employer, the employer must transfer both the employer's contributions and the employee's contributions (that were submitted to the employer from the employee on bed rest) to the provident or insurance fund.

Eligibility for Pension Fund Disability Allowance (Disability Pension) during Bed Rest

  • Certain pension funds in Israel allow a woman on bed rest to receive a Pension Fund Disability Allowance (Disability Pension) if her situation impaired her ability to work for more than 90 days (or less depending on the conditions of her fund).
  • If the employee is eligible for disability pension, she and her employer do not have to pay into they pension fun (the employer and employees parts) for pension insurance during this time because the pension fund will pay these amounts into the pension savings of the employee during the period in which she receives the pension benefit from the pension fund.
Tip
The allowance from the pension fund may be, (but is not necessarily), higher then the bed rest benefit the employee can receive from the National Insurance Institute. (In order to calculate the amount of the pension fund allowance see calculating the amount of pension fund disability allowance.) It is therefore recommended that a woman check ahead of time with her pension fund what the allowance amount she would receive would be and see if it is higher then the amount of the bed rest benefit she is entitled to from the National Insurance Institute.
  • For eligibility conditions and the process of receiving a disability benefit from a pension fund see:
Warning
You should check ahead of time with your pension fund if they pay an allowance in the event of bed rest and under what conditions.

The right to a bed rest benefit is contingent on the woman being out of work for at least 30 days. In contrast, the right to a Pension Fund Disability Pension (Disability Pension) is given only if the inability to work lasts over 90 days (or less if the fund's rules allow otherwise).

Not all pension funds give a disability pension to a woman on bed rest and therefore it is important to check ahead of time with the pension fund that insures the employee.

Please Note

  • A pregnant employee on bed rest must submit her provident fund contributions to her employer every month in order for the employer to contribute its provident fund contributions. But, the employee's delay in depositing funds does not relinquish the employer of the responsibility to transfer the payments to the provident fund, study fund or pension plan (the employer's share and the employee's share) on time.

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