Old Age Stipend – Social Security (Bituach Leumi)

Submitted by Moshe on Mon, 26/07/2010 – 09:23

 

In response to many recent questions, following is a short and very general explanation.

A detailed and thorough explanation is available in English on Bituach Leumi’s website:
http://www.btl.gov.il/English%20Homepage/Benefits/Old%20Age%20Insurance/…

In general, there are mnay conditions based on age, sex, marital status, for olim – their age when they made aliyah as well as total gross income.
The old age stipend is one of the most important branches of insurance in the social insurance system in Israel and is part of the social benefits detailed in the Social Security Law (Bituach Leumi).
It’s purpose is to ensure a monthly income to Israeli Residents who are eligible in their retirement years.

The old age stipend, as defined by the Social Security Law, makes eligible Israeli residents who have reached the eligible age, provided they have been insured at least the minimum time as defined by the law and the insurance money has been paid for them.
There are two ages defined by law: retirement age and entitlement age.

In instances where an employee goes on early retirement (before old age) they may be eligible, depending on their total gross income (excluding pension payments).
When a person reaches the old age defined by law, they are eligible regardless of their gross income provided they meet the other criteria.

Both the retirement age and entitlement age are defined specifically by the Social Security Law, and they are different for men and women. Up until June 30, 2004 retirement age was 65 for men and 60 for women. Begining July 1, 2004, the law redifined the retirement age for men to 67 and 64 for women.
Because of this change in the law, Men who were born between 7/1939 and 4/1942 and women who were born between 7/1944 and 4/1953, the age is gradual. (see the chart on Social Securty’s site)

The site is very informative and also has instructions as to how to file and what documents are needed.