Government Urged to Intervene as National Pension Fund Merger Sparks Retiree Anxiety
Senior retirement representatives voice profound concerns over the proposed consolidation of two major pension systems, calling for immediate government review.
A senior representative from the Fars Province Teachers’ Retirement Association has raised a critical alarm regarding a proposed merger between the National Pension Fund and the struggling Steel Industry Pension Fund. The announcement of this plan has reportedly generated a wave of deep concern and protest among retirees across the nation, who view the move as potentially jeopardizing their financial security.
A Call for National Dialogue and Prudent Action
The association’s head, Hamzeh Roustami Aghajeri, described the proposed merger as a significant injustice to retirees. He issued a serious appeal to the National Consensus Government and members of parliament to intervene in this matter of profound importance. Emphasizing the historical role retirees played in the nation’s foundational events, he stated that this respected segment of society now looks to the government for wise and protective decisions.
Contrasting Financial Health of the Funds
The core of the concern lies in the starkly different financial conditions of the two funds. The National Pension Fund, with over a century of history, is the country’s second-largest fund after the Social Security Organization. It controls five major holding companies and over a hundred investment firms. Aghajeri stressed that the assets of this fund are a sacred public trust and must not be exposed to the risk of a merger with a fund that has been on the verge of bankruptcy for years.
In contrast, the Steel Industry Pension Fund has faced well-documented financial crises since the 2010s. It has reportedly been unable to reliably pay the pensions for its more than 80,000 beneficiaries. Issues such as payment arrears, incomplete implementation of pension harmonization policies, and controversial management changes were cited as primary reasons for a severe erosion of public confidence in its stability.
Structural Reforms Proposed Over Merger
Further highlighting the vulnerabilities within the current system, Aghajeri noted that the National Pension Fund itself relied on government aid for 70% of its resources in the past year. This significant dependence, coupled with weaknesses in investment management, underscores a pressing need for deep structural reforms within the existing fund, rather than a hasty merger that could exacerbate the current financial challenges.
Retirees are firmly opposed to the merger plan in its current form. Aghajeri concluded by stating that should their concerns go unaddressed, the matter will be pursued through the Administrative Justice Court. The clear demands are for greater transparency, a diversification of revenue streams, and improved fund management to safeguard pensioner rights and restore public trust.
