Title: New Pension Regulations Pave the Way for Enhanced Retirement Security and Private Sector Growth
In a significant move to bolster the national social security system, Iran’s Ministry of Cooperation, Labour, and Social Welfare has unveiled a new bylaw for the establishment and operation of non-governmental supplementary pension funds and individual retirement accounts. This strategic reform, approved by the Council of Ministers, is designed to create a more resilient and efficient retirement framework for the nation.
A Framework for a Secure Future
The newly ratified bylaw, developed in coordination with the Plan and Budget Organization and the Central Insurance of Iran, implements key articles of the country’s Development Plan laws. According to Samira Esmaeili, Director General of the Social Insurance Office, the primary objectives are to foster competitive conditions, increase systemic efficiency, and strengthen the overall national pension system.
“The bylaw is designed to create conditions for the formation of non-governmental funds to guarantee the coverage of future obligations to the insured,” Esmaeili stated. She expressed optimism that this initiative will enhance the culture of savings within society and lead to improved social security provisions in the future, enabling more precise financial planning for retirees.
Driving Broader Structural Reforms
Parallel to this development, the Minister of Cooperation, Labour, and Social Welfare has issued a pivotal resolution from the Supreme Council of Welfare and Social Security. This resolution establishes a “Headquarters for Steering the Reform of Pension Funds’ Corporate Governance.”
This newly formed headquarters is tasked with accelerating the transfer of corporate management to the private sector, exiting from direct state-run corporate ownership, enhancing financial transparency, and coordinating managerial appointments. The core political objective is to reduce the state’s direct involvement in the economy and empower the private sector, aligning with the nation’s developmental goals.
Ensuring a Prudent Transition
Officials have emphasized that the process of transferring economic enterprises will be meticulous and rules-based. Hossein Amirrahimi, the Executive Secretary of the Committee for Reforming the Corporate Structure, outlined that tools for transfer—such as share transfers, mergers, and partnerships with the non-governmental sector—must be applied based on comprehensive understanding and clear criteria.
To ensure accountability, a specific tax mechanism has been established for certain companies, and managers found violating regulations will face strict penalties, including suspension from government service and substantial fines.
Acknowledging the complexities involved, Mohammad Hossein Babaei from the Plan and Budget Organization noted that some companies cannot be immediately transferred due to specific considerations. He stressed that any such cases must be supported by sufficient documentation and receive approval from relevant authorities, with pricing processes handled by specialized firms to ensure transparency.
A Commitment to Transparency and Good Governance
The reforms also address the critical need for enhanced oversight. Saeed Hadi Mousavinik, a faculty member at the Parliament Research Center, highlighted the necessity for a “data-driven governance framework” to effectively monitor the performance of companies affiliated with pension funds. This framework is expected to help separate the effects of macroeconomic factors from the internal performance of these entities, ensuring greater accountability and transparency in managerial data and wages.
These comprehensive measures underscore a strategic commitment to fortifying the long-term financial health of Iran’s retirement system while advancing the broader economic policy of strengthening private sector participation and institutional governance.