Mazuz okays Treasury's safety net plan

Attorney General Menachem Mazuz approved the Finance Ministry's safety net plan, meant to secure savings in pension and retirement funds.

The Treasury presented Mazuz with the plan's framework on Sunday. According to the law, every financial plan put forward in a time nearing election must be reviewed by the Attorney General's Office, in order to avoid the appearance of campaign economics.

The Treasury's market stimulus plan, which was presented last week, underwent a similar review; however, unlike the stimulus plan, senior officials in the Treasury believe the pensions' safety net plan to be fiscally irresponsible, and have warned that it may carry significant implications which future government would be left to deal with.

Nevertheless, Mazuz determined the guidelines were not politically motivated or financially irresponsible, and gave the Treasury the green light to begin and formulate the plan, so that the government may vote on it.

The plan will reportedly allow the Treasury to intervene in stock market trade should it experience any major slumps; and will include guidelines meant to protect savings in pension and retirement funds – of workers over the age of 60 – against future market slouches.

The guidelines presented by the ministry so far, however, go against the demands made by Ofer Eini, chairman of the Histadrut labor federation, who would like to see all those who have suffered losses in the recent market slump retroactively reimbursed.

The Treasury's refusal had led to the Histadrut labor federation to declare a general labor dispute on Sunday, in protest. Eini is expected to bring the declaration before the Histadrut's leadership on Tuesday for approval. Should his motion be carried, a general strike could be called two weeks from Tuesday.