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Key Facts: Pension Consultant Exam

347 ILS

2026 Final Exam Fee

Capital Market Authority 2026 fee tariff

Sittings in 2026

Capital Market Authority exam dates table

6 Months

Internship Period

2006 Licensing Regulations, reg. 18

30 Days

Window to Appeal a Result

Capital Market Authority appeal procedure

393 ILS

2026 Appeal Fee

Capital Market Authority 2026 fee tariff

100

Practice Questions

OpenExamPrep Bank

The Capital Market, Insurance and Savings Authority holds the Final Examination in Pension Insurance twice a year — on 29 June 2026 and 9 December 2026 — for a statutory fee of 347 ILS under the Authority's 2026 tariff. The syllabus is set by regulation and spans pension funds, executive insurance, provident and study funds, retirement taxation and the advisory legislation. The Authority does not publish the item count, the duration or the pass mark. This bank provides 100 independent English-language practice questions written to the published syllabus by OpenExamPrep.

Sample Pension Consultant Practice Questions

Try these sample questions to review concepts for the Pension Consultant exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Supervision of Financial Services (Provident Funds) Law, 5765-2005, what distinguishes a comprehensive new pension fund (קרן פנסיה מקיפה חדשה) from a general pension fund (קרן פנסיה כללית) in Israel?

A.A comprehensive fund enjoys a subsidized government safety-net bond allocation (or guaranteed return mechanism) and has a statutory monthly deposit ceiling, whereas a general fund has no deposit ceiling and receives no government designated bonds.

B.A comprehensive fund permits lump-sum capital withdrawals at retirement without penalty, whereas a general fund strictly mandates monthly annuity conversions.

C.A comprehensive fund is reserved exclusively for public-sector civil servants, while a general fund is marketed to private-sector employees and self-employed individuals.

D.A comprehensive fund cannot include disability and survivors insurance components, while a general fund must bundle both mandatory risk riders.

Explanation: A comprehensive new pension fund receives government designated bonds (or the replacement return-guarantee mechanism establishing a 5.15% guaranteed yield on 30% of portfolio assets), which limits monthly deposits to a statutory cap of 20.5% of twice the national average wage. In contrast, a general pension fund operates without designated government bonds or return subsidies and therefore has no monthly deposit ceiling, accepting deposits exceeding the comprehensive cap.

2What is the statutory monthly deposit ceiling for a comprehensive new pension fund (קרן פנסיה מקיפה חדשה) in Israel?

A.20.5% of twice the national average wage (פעמיים השכר הממוצע במשק).

B.18.5% of three times the national average wage.

C.22.5% of the employee's gross monthly base salary regardless of national indicators.

D.A fixed statutory amount of 10,000 ILS per month indexed annually to the CPI.

Explanation: Under Capital Market Authority regulations and the Provident Funds Law, the maximum monthly deposit allowed into a comprehensive pension fund is capped at 20.5% of twice the national average wage as defined by the National Insurance Institute. Any surplus deposits beyond this cap must be routed to a general pension fund, provident fund, or executive insurance.

3How does the mutual guarantee (ערבות הדדית) mechanism affect account balances in an Israeli comprehensive pension fund?

A.Actual mortality and disability claims across the fund are balanced against demographic risk reserves; an actuarial surplus increases member balances, while an actuarial deficit reduces them proportionally.

B.The managing insurance company bears all underwriting deficits from its equity reserves and guarantees zero downward balance adjustments.

C.The State of Israel covers any demographic claim deficits directly through quarterly Ministry of Finance subsidies.

D.Only the accounts of active retirees are debited or credited based on actuarial variance, leaving active accumulators unaffected.

Explanation: Pension funds operate on a mutual guarantee basis where members insure one another. If actual payouts for disability and survivors claims in a given period are lower than the actuarial assumptions, an actuarial surplus (עודף אקטוארי) is distributed to members' balances; if claims exceed projections, an actuarial deficit (גירעון אקטוארי) is deducted proportionally across members' balances.

4In the uniform charter of a comprehensive pension fund (תקנון אחיד), what share of the basic survivors' pension (הקצבה הבסיסית לשאירים) does a surviving spouse (אלמן / אלמנה) of an insured member receive?

A.60% of the basic survivors' pension — the determining salary multiplied by the survivors' insurance coverage rate the member had selected.

B.100% of the basic survivors' pension for life, with orphans' pensions paid on top of it.

C.40% of the member's accumulated balance, paid as an immediate lump sum instead of a monthly pension.

D.75% of the determining salary, being the same ceiling that applies to a disability pension.

Explanation: The uniform charter first computes a basic survivors' pension — the member's determining salary multiplied by the survivors' insurance coverage rate selected under the member's chosen insurance track — and then allocates fixed shares of that amount to each survivor. A surviving spouse receives 60%. The combined survivors' pensions may not exceed the basic survivors' pension, so the shares of the other survivors are constrained by that cap.

5What is the maximum qualifying period (תקופת אכשרה) that an Israeli pension fund may apply for pre-existing medical conditions before granting full disability and survivors coverage?

A.60 consecutive months (5 years) of membership.

B.24 consecutive months (2 years) of membership.

C.36 consecutive months (3 years) of continuous premium payments.

D.12 months for salaried employees and 24 months for self-employed individuals.

Explanation: Under the uniform regulations governing pension funds in Israel, the statutory qualifying period (תקופת אכשרה) for pre-existing medical conditions is 60 continuous months (5 years). If a disability or death arises from a medical condition that existed prior to joining the fund, the fund does not pay the pension unless 60 months of continuous insurance have elapsed.

6Under Capital Market Authority regulations, what are the maximum statutory management fees (דמי ניהול מקסימליים) that a comprehensive pension fund may charge an individual member?

A.Up to 6% from ongoing contributions and up to 0.5% annually from accumulated savings.

B.Up to 4% from ongoing contributions and up to 1.05% annually from accumulated savings.

C.Up to 2% from ongoing contributions and up to 0.8% annually from accumulated savings.

D.Up to 11% from ongoing contributions and up to 1.4% annually from accumulated savings.

Explanation: By law, the statutory ceilings for management fees in an Israeli pension fund are 6.0% from monthly deposits (דמי ניהול מהפקדות) and 0.5% per annum from accumulated assets (דמי ניהול מצבירה). (Note that in executive insurance the statutory maximums are 4% from deposits and 1.05% from accumulation).

7What is the primary statutory purpose of the 'Default Pension Funds' (קרנות פנסיה נבחרות / ברירת מחדל) selected through the Capital Market Authority tender?

A.To provide all unrepresented employees whose employers have not negotiated a group pension arrangement with guaranteed low management fees for a multi-year period.

B.To insure state civil servants who do not select a private financial institution within 30 days of hiring.

C.To hold dormant pension balances belonging to deceased individuals without known heirs.

D.To manage high-risk speculative equity investments for accredited pension savers.

Explanation: The default pension funds (formerly 'pension funds of choice') are selected periodically by competitive Ministry of Finance / Capital Market Authority tenders. Their statutory purpose is to protect unorganized, low-wage, or passive workers whose employers haven't negotiated institutional discounts, ensuring they automatically receive highly competitive management fees guaranteed for at least 10 years.

8Under the Israeli age-adjusted lifecycle investment model (המודל הצ'יליאני), how does asset allocation change as a member ages?

A.The proportion of volatile assets such as equities automatically decreases as the member crosses statutory age thresholds (e.g., ages 50 and 60), shifting toward lower-risk fixed income.

B.The member's entire balance is liquidated into cash equivalents upon reaching age 55.

C.The investment portfolio remains fixed at 50% equities and 50% government bonds throughout the member's working life.

D.Asset allocation shifts toward foreign venture capital investments in the final decade before retirement.

Explanation: Under the default lifecycle model implemented by the Capital Market Authority (based on the Chilean model), investment tracks are segmented by age (under 50, 50–60, and 60+). As a saver ages, exposure to volatile growth assets (like equities) is systematically dialed down to preserve capital as retirement approaches.

9A single member with no spouse and no dependent children under age 21 joins a pension fund. What formal action should the pension consultant advise to prevent unnecessary insurance deductions?

A.File a formal waiver of survivors insurance (טופס ויתור שארים), which temporarily removes the survivor risk premium and directs the full deposit toward retirement savings for up to two years at a time.

B.Withdraw the accumulated severance pay to purchase a private life insurance policy.

C.Switch immediately to an executive insurance contract, where survivors coverage is legally prohibited for single individuals.

D.Designate parents as mandatory beneficiaries on the standard registration form, which eliminates the risk charge.

Explanation: A single member without a spouse or children under 21 can submit a declaration of single status / waiver of survivors coverage (ויתור על כיסוי שארים). This waives the survivor premium deduction, redirecting those funds into the accumulation component. The waiver must be renewed every two years, or it automatically lapses.

10A salaried worker earning 12,000 ILS per month suffers a work-related accident resulting in full disability. How is the monthly disability pension (קצבת נכות) calculated by the pension fund?

A.Up to 75% of the determining salary (9,000 ILS), offset by any monthly disability pension received from the National Insurance Institute (Bituach Leumi).

B.100% of the employee's average net salary for the preceding 12 months, payable regardless of National Insurance benefits.

C.A lump sum equal to 120 times the monthly gross salary, with no ongoing monthly annuity.

D.75% of the determining salary paid as a cumulative top-up on top of the full National Insurance disability pension without any offset.

Explanation: Under the uniform pension regulations, the maximum disability pension is 75% of the determining salary (here 75% × 12,000 = 9,000 ILS). In the case of work-related injury where Bituach Leumi pays a work-injury disability pension, the fund offsets the state payment so that the total combined benefit received by the member does not exceed the statutory 75% limit (the offset rule / מנגנון קיזוז).

About the Pension Consultant Exam

The Final Examination in Pension Insurance (בחינת גמר בביטוח פנסיוני) is the statutory qualifying examination set by the Capital Market, Insurance and Savings Authority for a licence as a pension adviser (יועץ פנסיוני), pension marketing agent (סוכן שיווק פנסיוני) or pension-branch insurance agent (סוכן ביטוח בענף פנסיוני). Its subject matter is fixed by the First Addendum to the Supervision of Financial Services (Insurance) (Application for a Licence, Training, Internship and Examinations) Regulations, 5766-2006, and covers life insurance, pension funds, provident funds, personal accident, illness and hospitalisation cover including occupational disability, tax reliefs on pension saving, prohibition of money laundering, and the Commissioner's circulars and relevant case law. Candidates for a pension adviser or pension marketing agent licence must also pass Professional Examination A set by the Israel Securities Authority. The official examination is conducted in Hebrew; this practice bank is an independent English-language study adaptation and is not an official translation of the examination or of its materials.

Exam sponsor: Capital Market, Insurance and Savings Authority (רשות שוק ההון, ביטוח וחיסכון). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Written examination set by the Capital Market, Insurance and Savings Authority on the syllabus in the First Addendum to the 2006 licensing regulations; sat in Hebrew at examination centres in Tel Aviv

Time Limit

Duration not published by the Authority

Passing Score

Pass mark not published by the Authority

Exam / Certification Fees

347 ILS (2026 tariff published by the Authority)

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

25%

Comprehensive & General Pension Funds

Mutual guarantee mechanisms (ערבות הדדית), actuarial surplus and deficit calculations, age-tailored lifecycle investment models, disability and survivor pension formulas, and beneficiary designation protocols.

20%

Executive Insurance & Life Insurance Policies

Policy types (capital vs annuity), guaranteed mortality conversion factors (מקדמים מובטחים), occupational disability riders, profit-sharing policies, management fee caps, and insurer disclosure requirements.

15%

Provident Funds & Advanced Study Funds

Tax deduction and capital gains ceilings for self-employed and salaried savers, Gemel LeHashkaah withdrawal options, Amendment 190 annuity incentives, IRA investment restrictions, and unapproved early withdrawal penalties.

15%

Retirement Taxation & Severance Pay

Mandatory Pension Expansion Order obligations, Section 14 severance mechanics, Section 9(7a) exemption ceilings, Form 161 reporting, continuous pension/severance sequence elections, Section 8(c) forward/backward tax spreading, and Section 9A rights fixation (נוסחת השילוב וסל הפטור).

25%

Advisory Legislation & Pension Clearinghouse

2005 Advisory and Marketing Law, fiduciary duty of advisors, suitability and needs-analysis documentation, uniform distribution fees, Portability Regulations (תקנות הניוד), Section 20 freedom of employee choice, Default Pension Funds, and clearinghouse turnaround deadlines.

Preparing for the Pension Consultant Exam

What You Need to Know

Passing score: Pass mark not published by the Authority
Assessment: Written examination set by the Capital Market, Insurance and Savings Authority on the syllabus in the First Addendum to the 2006 licensing regulations; sat in Hebrew at examination centres in Tel Aviv
Time limit: Duration not published by the Authority
Exam / certification fees: 347 ILS (2026 tariff published by the Authority) Official sources

Using Our Practice Resources

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Pension Consultant: Suggested Study Strategy

1Master the distinction between mutual responsibility in pension funds and individual contractual risk in executive insurance policies.

2Practice multi-step retirement tax calculations, particularly Section 14 severance allocations, Section 9(7a) exempt severance caps, and the 1.35 factor in Section 9A rights fixation.

3Understand the operational timelines and statutory rules of the Pension Clearinghouse and Fund Portability Regulations (10 business days for transfers).

4Memorize the mandatory minimum contribution rates under the nationwide Expansion Order: 6% employee, 6.5% employer pension, and 6% employer severance.

5Review the 2005 Advisory Law's conflict of interest provisions, particularly the absolute ban on advisors accepting non-uniform distribution fees.

Frequently Asked Questions

How many questions are on the Israeli final pension insurance exam, and how long is it?

The Capital Market, Insurance and Savings Authority publishes the syllabus, the sitting dates and the fee, but it does not publish the number of items, the duration or the pass mark. Regulation 7 of the 2006 licensing regulations states only that the examinations are written. Item counts and pass marks quoted by commercial preparation courses are not official, so we do not repeat them here.

Is this practice bank in the same language and format as the official exam?

No. The official examination is set and sat in Hebrew. This is an independent English-language study bank of four-option multiple-choice questions written by OpenExamPrep to the syllabus the Authority publishes. It is not an official translation, not a simulation of the examination's format or language environment, and not a substitute for the official syllabus materials, the regulations or the Commissioner's circulars.

When is the exam held and what does it cost in 2026?

The Authority scheduled two sittings for 2026: 29 June 2026, with registration closing 29 May 2026, and 9 December 2026, with registration closing 10 November 2026. Under the Authority's published 2026 tariff the final examination fee is 347 ILS, the foundation examination fee is 248 ILS, and the fee for an appeal against a result is 393 ILS.

What is the difference between a Pension Advisor and a Pension Marketer in Israel?

Under the 2005 Advisory Law, a Pension Advisor (יועץ פנסיוני) has an absolute fiduciary duty to the client and cannot hold any economic affiliation to institutional product providers. A Pension Marketer (משווק פנסיוני) or Insurance Agent has contractual affiliations with specific institutional bodies and markets their products.

What is 'Rights Fixation' (קיבוע זכויות) under Section 9A?

Rights fixation is the statutory procedure executed via Form 161D upon reaching retirement age, where a retiree formally elects how to utilize their statutory Exemption Package (סל הפטור) between tax-exempt monthly pension annuities and tax-free lump-sum capital commutation, taking into account past tax-free severance received.

How does the Pension Clearinghouse operate?

The Pension Clearinghouse (המסלקה הפנסיונית הישראלית) is a secure central data hub established by the Ministry of Finance. It connects savers, advisors, agents, and institutions to provide unified portfolio data within 3 business days and route operational transfer and contribution requests.