Former National Insurance CEO Accuses Finance Ministry of Misusing Social Security Funds for War Expenses
Meir Shpigler, former CEO of Israel's National Insurance Institute, has launched a sharp critique against the Finance Ministry, accusing it of misappropriating funds collected as National Insurance contributions. Shpigler insists these contributions are not general tax revenue but are specifically designated for social welfare benefits, including pensions and long-term care. He claims the Finance Ministry systematically diverts this money to cover war-related expenses instead.
Highlighting a dramatic rise in long-term care costs from 7 billion shekels in 2018 to an expected 21 billion shekels by 2025, Shpigler rejects the Finance Ministry's argument that the increase stems from expanded eligibility. He defends reforms that replaced humiliating physical assessments of the elderly with medical documentation as a necessary correction rather than an open-ended spending increase.
Shpigler also reveals that recent hikes in National Insurance contributions, such as the 5 billion shekel increase in the latest economic plan, have not been allocated to social benefits but have vanished into the budgetary gap caused by war expenditures. He summarizes the Finance Ministry's conduct as "killing and inheriting," using National Insurance funds while blaming the Institute for financial crises.
To address the crisis, Shpigler proposes concrete solutions: raising the retirement age aligned with life expectancy, requiring the Finance Ministry to pay real interest on surpluses held from National Insurance funds, and ensuring the Institute's budgetary independence by preventing the use of these funds as a financial "ATM" for other state needs.
The Finance Ministry rejects these accusations, asserting its budget adjustments are necessary to maintain the social system's sustainability amid wartime pressures. Meanwhile, public debate intensifies over the true ownership and intended use of National Insurance contributions, especially as the Knesset's Economic Committee recently examined concerns about improper practices in long-term care insurance claims. The core question remains whether these funds will continue to be treated as a general state resource or preserved for their original purpose of protecting vulnerable populations.
