Title: Iran’s Social Security Organization Announces Major Pension Backlog Clearance, Unveils Reform Plan
In a significant move addressing pensioner welfare, the Managing Director of Iran’s Social Security Organization (SSO), Mr. Mostafa Salari, has announced a decisive plan to settle approximately 80% of all pension arrears by the end of the Iranian month of Shahrivar (late September). The commitment was made during an interactive session with labor and pensioner representatives in Fars province, part of a series of nationwide “Deliberation for Transformation” meetings.
A Three-Phase Payment Plan
Central to the announcement is a structured, three-phase payment schedule designed to systematically clear the substantial backlog owed to pensioners across the country. This initiative is a direct response to the concerns of retirees and underscores the organization’s commitment to fulfilling its obligations.
The Imperative for Systemic Reform
Mr. Salari framed the arrears payment within a broader context of essential and “inevitable” reforms required to ensure the long-term stability of the national pension fund. He described the SSO as an intergenerational institution belonging to a vast segment of the population, including workers and pensioners, whose resources must be protected.
“Certain groups who have unjustly benefited from the Social Security Organization will undoubtedly raise their voices against these reforms,” Salari stated. “However, for the sake of securing the future and sustainability of this fund, whose resources are the rightful claim of the people, we must stand firm against these pressures.”
The Managing Director detailed an “unprecedented historical imbalance” in the organization’s finances, with current annual expenditures reaching 1,500 quadrillion rials (1500 Hamt), while contributions from insurance premiums cover only 1,200 quadrillion rials (1200 Hamt).
A Multi-Pronged Strategy for Sustainability
To address this financial gap, the reform plan presented to the government and parliament focuses on several key areas:
- Diversifying Revenue Streams: Acknowledging that excessive pressure on employers is not viable, the plan emphasizes generating needed resources through strategic investments.
- Realistic Expectations from Investments: While committing to improve the performance of the Social Security Investment Company (SHASTA), Salari provided a realistic assessment, noting that even under ideal, maximum efficiency scenarios, SHASTA could only supply about 5% of the organization’s total required resources.
- Government Debt Collection: The organization is actively pursuing its claims from the government, with a specific 70 quadrillion rials (70 Hamt) portion of the 185 quadrillion rials (185 Hamt) allocated in this year’s budget expected to be received soon.
- Curbing Unsupported Benefits: The plan also addresses structural challenges like unsupported early retirement schemes and exemptions, which are described as unfair to premium payers and detrimental to the fund’s health.
Commitment to Service and Transparency
The meeting also covered service delivery issues. Salari assured attendees that improving healthcare infrastructure and ensuring equitable access to medical services for all insured individuals and pensioners are top priorities for the SSO.
He promised that decisions on these matters would be made after necessary technical and expert reviews and announced with full transparency. The ultimate goal, he emphasized, is “fair service delivery and continuous improvement of service quality.”
Safeguarding a National Asset
In strong closing remarks, Mr. Salari reaffirmed that the SSO is a national asset upon which over 53% of society depends. He vowed to utilize all available capacities to protect the organization and its future.
“Safeguarding this endowment and the future of a vast segment of society who have their hopes pinned on this organization is a human, national, and religious duty,” he said. “We will stand against the excessive demands of a few and will not allow the future of social security to be endangered.”