Title: Landmark Payments and Financial Strategy Announced for Iran’s Pensioners During Government Week
In a significant move during Government Week, senior officials from Iran’s Social Security Organization (SSO) have detailed a comprehensive plan to address pensioner payments and the organization’s financial future, highlighting both recent achievements and a clear roadmap for the coming months.
Ongoing Payment of Pension Adjustments
Mohammad Ebrahimi, an SSO official, confirmed that the payment of pension adjustments for the current year is proceeding as planned. “Based on the adjustment bylaws communicated by the government, it was stipulated that the 1403 (2024-2025) adjustment arrears would be paid throughout the year. Through continuous efforts and follow-ups since the beginning of the year, four installments of these arrears have been paid so far,” he stated.
Ebrahimi added, “The remaining six installments of the arrears will also be paid in full, God willing, over the coming months.”
A Transparent Dialogue on Financial Challenges
The announcements were made during a live online meeting hosted on the Aparat platform, featuring SSO CEO Mostafa Salari and heads of provincial pensioner associations. The session served as a platform for direct dialogue, with Salari first listening to the concerns and problems raised by the representatives before outlining the SSO’s financial strategy.
Salari provided a transparent breakdown of the organization’s substantial financial commitments, noting an annual expenditure of 1,500 trillion tomans. He explained that 1,200 trillion tomans of this is covered by insurance premiums. To bridge the 300 trillion toman gap, the SSO relies on a multi-faceted approach: 30 trillion tomans from the profits of its affiliated companies and holdings (Shasta), 20 trillion tomans in cash and non-cash support from the government, and the remainder from real estate income.
Navigating Economic Pressures and Commitment to Pensioners
The CEO did not shy away from discussing recent economic pressures. He revealed that resource collection last month was 32% lower than expected, partly due to the recent 12-day conflict, which caused delays in receiving insurance premiums for the months of Khordad and Tir (May-July). This situation led to concerns within the government about the ability to pay pensions for the summer months.
“Despite these challenges, we worked tirelessly to ensure pensions were not delayed,” Salari said. This effort, however, resulted in the organization accruing 67 trillion tomans in debt to the banking system. He also addressed the inflationary impact of necessary but exceptional banking measures taken to facilitate these payments.
Salari emphasized the organization’s commitment to its pensioners, even in the face of a significant 27 trillion toman deficit. “Out of respect for the representatives of the pensioners, we implemented the pension adjustment despite the vast shortfall,” he stated, which increased the SSO’s routine costs from 67 to 94 trillion tomans.
Government Cooperation and Future Outlook
A key development highlighted was the government’s unprecedented cooperation. Salari noted that for the first time, the SSO’s request for the government to settle its debts has received a positive response. The government has agreed to pay beyond the 185 trillion toman debt settlement stipulated in the budget law.
Following a directive from the President to address the issue, a meeting was held with the heads of the three branches of government. It was decided that the relevant law would be amended to allow for the annual settlement of this 185 trillion toman debt. A practical agreement was reached to receive 70 trillion tomans from this total, which will be used to settle debts with medical centers and for complementary and life insurance.
Concrete Timeline for Arrears and Medical Claims
Providing a clear timeline for pensioners, Salari announced that the remaining pension arrears are scheduled for payment in the first half of the month of Shahrivar (late August/early September). Furthermore, settlements for complementary insurance claims will begin from Shahrivar.
The CEO concluded on a positive note, stating that settling debts with medical centers by the end of Mordad (mid-August) will free up organizational resources for other obligations. “Free treatment and pensions are our main duty,” Salari affirmed, reinforcing the organization’s primary commitment to Iran’s retired community.
