Teachers to Get NIS 150m Over Breached Contract

State rewrote pension deposit policy

About 20,000 secondary school teachers will be receiving NIS 150 million in compensation from the state and the Union of Local Authorities because the municipalities that employ them breached their collective bargaining agreement, the National Labor Court ruled this week.

The ruling applies to members of the Secondary School Teachers Association who are members of one of the veteran pension funds formerly affiliated with the Histadrut labor federation.

Last September, the court ruled that the 16,000 teachers enrolled in newer pension funds were entitled to be fully compensated for the financial damage they suffered when the state unilaterally changed their pension policy.

However, that decision did not address members of the older funds.

Now, the veteran pension fund members will get an average of about NIS 8,000 each.

They are being compensated because the state withheld too much money from their salaries to put into their pension funds between 2004 and 2009 - an extra 1.5%, to be precise.

That move came in the wake of a 2003 decision by the state to rescind its 1987 collective bargaining agreement with the teachers.

That agreement had set the rate of pension contributions by the teachers and their employers. The state argued that the agreement had violated the law.

The teachers' union then petitioned the National Labor Court over the move, seeking to have the collective agreement enforced.