It's been a while since I have sent out an update. The trouble is, while changes continue apace, they frequently apply to very specific groups of people and it has not seemed worthwhile sending out a general advisory.

Today I spent an interesting morning being lectured at on the subject of the continuing flood of changes in all things relating to life assurance, long term savings and pensions. As you may recall, some three months ago I announced that the Institute of CPAs had forwarded a warning that we are not allowed under the new legislation to even remotely be suspected of giving advice on such subjects. My urgent request for clarification from the institute, since resent, has gone unanswered. I thus assume they are either in shock or couldn't give a hoot.

So I won't advise you. However, I believe it essential in the extreme for everybody who pays out money for the above items take advice from somebody who is licensed to give it. I have said this before but today's jaunt underlines the fact that, as one of the lecturers said, by the time he gets home from a given lecture he can throw out his notes because they are already out of date.

Some headlines:

If you employ people you can no longer tell them who you want to pay their social benefits to. Maximum, you can tell them who your broker or advisor is, but if he doesn't work with the company they want to use, too bad. The upside? If they go to a lousy insurance company that loses their money they can't blame you. And they can't any longer pay the gemel to one (profitable) company and the pitzuim to another (loss maker). The downside? If you don't tell them about their new rights they might have a legitimate complaint against you, and if their new company loses money on their pitzuim (unless, as I mentioned years ago, you had them sign an agreement under Section 14, ask your broker about it) you get to pick up the tab. Also, if you delay payment of social benefits 6 working days after payment of salaries or past the 15th of the month (whichever is earlier) a long list of people can go to prison as well as copping personal fines. So I repeat, you must- give me a week's notice to prepare the monthly salaries or I cannot accept any kind of responsibility for delays. Even though I normally give same day service you cannot rely on this.

And how's this one? For some time now there has been a nasty bit of retroactive legislation in the works which proposes to withdraw entirely the tax advantages on social benefits for a huge portion of the population. Those who will not lose out entirely will include people born before 1961, Government workers with non contributory pension plans (I imagine Radio Kol Chai's Rabbi Israel Eichler, MK(ret.) will have plenty to say about that one) and persons who have pension/kitzba plans (not regular kupot gemel or "honi" insurance) costing at least 16% of their incomes. This was supposed to be backdated to 1.06 although the consensus is that the war has made that unworkable and it may now be delayed to 1.07.

Cash in your plan after 15 years? For recent and future payments, as foreseen in this spot, this is a thing of the past if you don't wish to pay penal tax. You wait until you are past 60 (probably slated to increase) with at least 5 years seniority in the plan. I do hope you all stopped paying into these things for your children when I told you to. And even if you continue to do this, and even if you get out of the last paragraph, your tax benefit on the kids' plans is out too.

Even without all the above, it is quite likely that some of you will find some of the tax benefits you have already received this year will have to be paid back if a recent internal memo in the tax office reaches the public since this is based on existing legislation and not on anything retroactive.

That will do on that subject, there's much more though. Under the circumstances I recommend all employers get themselves a qualified independent advisor and that he goes over the social benefit schedules with me before the end of 2006. I should also mention that the lectures were designed to get people to purchase a subscription to a website called "Kol Atid" which is supposed to keep you clued up with all this. Judging by the calibre of the lecturers it should be pretty good, but it seems I am not allowed to simply subscribe myself and advise you from it.