This week, the Israeli courts accepted for consideration two representative claims against pension funds and funds at once, dedicated to the collection of commissions by them and notification of their change.
On Sunday, March 20, the District Court of the Central District accepted for consideration a representative claim against the pension funds Menorah Mivtakhim, Migdal Makefet, Klal, Harel and Phoenix.
The plaintiffs accuse pension funds of raising fees to clients, up to the maximum legal limit, without notice, as soon as they retire and are unable to switch pension funds.
According to a lawsuit filed back in 2014 by a group of non-profit organizations that help the elderly, pension funds do not notify them at any stage of interaction with clients. That when they retire, the amount of commission charged from them will almost double.
In turn, the pension funds argue that the increase in commissions is prescribed in the charter of the funds, and that it is a question of setting the size of commissions under new circumstances, and not an increase, and therefore no special notice is required. In addition, the funds claim that this is a general practice, so the client would not find better conditions in any other fund.
In accepting the suit for consideration, the court ruled that the increase in the amount of commissions upon retirement of the client was indeed in accordance with the charters and circulars of the funds. At the same time, he considered the allegations that notification was not necessary unconvincing.
The class of plaintiffs includes all members of said pension funds who are eligible to receive a pension.
On Tuesday, March 22, the Tel Aviv District Labor Court accepted for consideration a representative lawsuit against the Excellence Nesua pension fund. The lawsuit was filed due to the lack of a clear notice of the increase in the amount of commissions for members of the fund, carried out back in 2007.
Kassa claims that annual reports were sent to all members of the fund, which contained a notice of a commission increase, but the court found the vaguely titled notice posted on page ten of the report, which few people read, insufficient.