Easing coalition crisis, controversial IDF pensions law passes first Knesset vote

The controversial pensions law — which would legalize a long-standing practice of pension increases for career military officers — passed its first reading in the Knesset on Monday night, with a narrow margin of 57-56 votes.

The legislation has been at the epicenter of the coalition’s latest crisis, and its passage today clears the way for a slate of delayed coalition legislation to come to the Knesset floor.

Yamina MK Abir Kara, who was the coalition’s last hold out against the bill, ultimately voted for the measure in the plenum.

According to a compromise deal worked out in the hours prior to the vote, the law will move to a joint committee formed between the Knesset’s Labor and Welfare and Foreign Affairs and Defense Committees for further discussion.

A spokeswoman for Kara said the compromise included an additional six parts, including that the legislative process will conclude by the first of August; the legislation will have changes; additional “spring cleaning” legislation proposed by MK Michael Biton will be advanced; Kara’s own legislation regarding social security payments for the self-employed will be advanced in the coming weeks; and self-employed workers financially affected by the Omicron wave of COVID-19 will receive assistance.

Kara also did not commit to voting for the measure in a second and third plenum reading, required to finalize legislation.

The Yamina rebel has been vocal about his opposition to the pensions law, which he has said legalizes a bad policy that has been running for years. In particular, he expressed that military pensions are generally generous and awarded starting at age 46. They also comprise a significant portion of the defense budget, according to Kara.

Defense Minister Benny Gantz, the law’s prime proponent, said that the law as proposed will not increase the current budget because the NIS 1.4 billion ($437 million) requested to support military pensions, according to Gantz, already existed in the budget.

“There is no request for a budget increase,” said Gantz in the Knesset plenum, an hour before the vote. “Even if the law doesn’t pass, the amount won’t change.”

Rather, Gantz says the proposed law reduces the military budget burden by 15%.

The proposed legislation also creates a difference in pension level between combat and non-combat soldiers, with combat soldiers assigned twice the amount.

The pensions law has been controversial in the Knesset, and debate over it led to Blue and White declaring a week-long boycott of voting for coalition legislation last week.

As a result, the coalition failed to advance its legislative agenda last week, and much-backlogged legislation is expected to be discussed on Monday evening and Tuesday in the Knesset.

Increasing military pensions is a longstanding practice, but it now requires legislation. Last year, the High Court of Justice ruled that there was no statutory basis for army pension plans and, according to Blue and White MK Alon Tal, set a deadline for February 28 to pass enabling legislation.