Steinitz - Salman - 8.5.12
Reuevn Rivlin (left), Yuval Steinitz and Moshe Gafni in the Knesset Finance Committee last week. Photo by Emil Salman
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The Knesset Finance Committee has approved a proposed bill meant to protect individual consumers, by setting a minimum level for pension fund management fees.

The bill would prevent large organized groups, such as workers' unions, from negotiating very low rates. Funds then offset those low fees by charging higher rates to individual customers.

MK Amnon Cohen (Shas ), who initiated the bill, says that because the organized groups have much more negotiating power, the legislation is necessary to prevent large, unfair disparities in management fees that are charged.

Under the current law, the finance minister can cap the fees that pension funds and provident funds can charge.

The bill states that the finance minister could set the rate with the approval of the Finance Committee.

The bill will be sent to the Knesset for a second and third reading. If approved, it will become law.