‘Historic’ Compromise Reached Between Teachers Union and Treasury

Jerusalem, 10 November, 2025 (TPS-IL) — In what Israel’s Treasury is calling “historic,” a compromise outline was signed to end the disputes between the state, the Teachers’ Federation and the continuing education funds they own regarding the distribution of the financial surplus accumulated in the Teachers’ Federation’s continuing education funds.

The compromise outline brings an end to a long-standing dispute between the Teachers’ Federation’s continuing education funds and the state.

In 2022, the State Attorney’s Office filed a lawsuit against the Teachers’ Federation’s continuing education funds, requiring the funds to return a total of approximately NIS 2 billion to the public purse.

As part of the settlement, 1.05 billion Shekels ($325 million) will be transferred to the state for the purchase of past rights, which will be used, among other things, to restore the education system in areas damaged by the “Iron Swords” war, as well as to conduct training and other activities to improve the status of teaching staff, and an amount of approximately 2.25 billion Shekels ($690 million) will be distributed to 165,000 eligible fund members and their heirs. In addition, the funds will begin purchasing budgetary pension rights for teaching staff who go on sabbatical starting from the 2022-2023 school year onwards.

The distribution of funds will be done automatically to members’ accounts or by digital means of payment, in accordance with procedures approved by the Capital Market Authority. At the same time, it was decided to maintain an actuarial safety cushion of at least 4%, for the benefit of the stability of the funds and the future well-being of members.