Histadrut and Ministry of Finance sign landmark agreement extending welfare fund services to all government retirees

The Histadrut and Israel’s Ministry of Finance today signed a groundbreaking collective agreement that will extend the benefits of welfare funds to civil service retirees insured under defined contribution pension plans.

Until now, welfare fund services, covering subsidized cultural activities, leisure, health, and vacation programs, were available only to retirees with defined benefit pensions. Under the new agreement, starting in 2026, the state will allocate a dedicated annual budget for each eligible retiree with a defined contribution pension, ensuring full parity with retirees under the older pension model.

Key Highlights of the Agreement

• Full Equality: Welfare funds will now provide identical services to all retirees, whether under the defined benefit or defined contribution system.
• State Funding: The government will allocate an annual, index-linked amount for each retiree with a defined contribution pension, mirroring the existing model for defined benefit retirees.
• Broad Coverage: The agreement applies to retirees from job classifications represented by the Histadrut within the civil service.

Statements from Key Figures

• Adv. Ofir Elkalia, Chair of the Civil Service Workers’ Union:
  “This is truly a historic day for our retirees. Achieving this correction was one of our top priorities, and I am proud that we have secured a rich and dignified welfare package for thousands of retirees. My thanks go to the Ministry of Finance and the Civil Service Commission. Together, we made it happen.”
• Efi Malkin, Wage Supervisor at the Ministry of Finance:
  “This is a positive, fair, and necessary step—equalizing conditions and entitlements among retirees. I want to thank my colleagues at the Histadrut, my team at the Ministry of Finance, and the Civil Service Commission.”
• Adam Blumberg, Deputy DG for Economy and Policy and Head of the TradeUnion Division at the Histadrut:
  “This is a deeply moral and value-driven move. The agreement reflects the power of organized labor in reducing gaps and ensuring the well-being of workers even after retirement.”
• Shmulik Mizrahi, Chair of the Histadrut Retirees’ Union:
  “For me, this is a dream come true. Retirees with defined contribution pensions will now enjoy significant welfare benefits and join the activities of the Government Employees’ Retirees Association. I thank everyone who contributed to this achievement.”
• Ehud Serafian, CEO of the Government Employees’ Welfare Fund:
  “We are correcting a decades-old imbalance. I am delighted for the retirees who will now enjoy a broader welfare package.”
• Zion Levy, Senior Division Head at the Civil Service Commission:
  “I welcome this agreement for the benefit of retired employees. It is part of a long-term process to equalize conditions between defined benefit and defined contribution pension holders. Best wishes for continued success.”