Capital Market Authority Seeks to Change the Pension Funds’ Yield-Guarantee Model and Limit Savers’ Ability to Choose Investment Tracks

On the eve of Rosh Hashanah, the Capital Market, Insurance and Savings Authority published draft regulations that amend those signed by the Finance Minister in 2017, parts of which were slated to take effect in 2025 * Insurers had eight years to prepare for the changes but did not implement the required adjustments * Last year, the Knesset Finance Committee approved the Authority’s request to extend the temporary order by one year and postpone the regulations’ effective date * Now the Authority is seeking not only to delay implementation by an additional year, but also to change the method of allocating the yield guarantee * The Authority, in response: aligning the designated bonds with the investment tracks, as proposed in the current reform, is necessary and warranted in light of changes in the market