Former National Insurance CEO Accuses Treasury Budget Department of Stealing Public Funds

Meir Spiegler, CEO of the Israel Electric Corporation and former head of the National Insurance Institute (NII), launched a severe critique against the Treasury's Budget Department and its handling of National Insurance finances. In an interview with Calcalist, Spiegler blamed the actuarial deficit on the Treasury's mismanagement, accusing them of diverting National Insurance contributions to cover budget shortfalls rather than funding social benefits. He claimed that over 10 billion shekels annually are taken from the NII, calling the practice fraudulent and criminal.

Spiegler, who previously implemented generous disability pension policies criticized by the State Comptroller for risking insolvency, defended the reforms as correcting past neglect of rightful beneficiaries. He highlighted that the actuarial deficit has accelerated the NII’s projected insolvency from 2041 to 2035, partly due to the Treasury’s policy of freezing insurance contribution brackets and redirecting funds to the general budget.

The State Comptroller's recent report sharply criticized the tripling of nursing care allowances from 7 billion shekels in 2018 to 21 billion in 2025 and the doubling of eligibility rates, which exceed OECD averages. The report also faulted the shift from in-person dependency assessments to reliance on medical documents, which Spiegler supports as less humiliating for recipients.

Spiegler accused the Budget Department of aiming solely to reduce social rights and maximize budget revenues without accountability, stating, "They steal money from the public without transparency." He warned that the current arrangement, allowing the Treasury to use National Insurance funds to cover deficits until 2028, will likely continue. Spiegler proposed raising the retirement age linked to life expectancy and requiring the Treasury to pay real interest on National Insurance surpluses to improve sustainability.

The Ministry of Finance rejected Spiegler’s allegations, asserting that recent budget measures for war expenses did not harm the NII’s financial status and emphasized their commitment to maintaining a stable social security system for future generations.