Title: Landmark Economic Resolution Paves Way for Pension Payments and Social Security Reform
Introduction: A Major Step Forward for Retirees and the Social Security System
In a significant move addressing financial obligations and systemic reforms, Iran’s Social Security Organization has announced the commencement of overdue pension adjustments. This action is supported by a major economic resolution from the country’s highest leadership, designed to settle substantial government debts to the social welfare fund.
Clearing Pension Arrears: A Phased Approach
The organization has confirmed that the process of paying the overdue pension adjustments and annual salary increases for the remaining eligible retirees and pensioners—specifically those with a total income exceeding 20 million tomans—will begin gradually. Starting Monday, October 12, 2024, payments will be processed alphabetically and through respective agent banks.
This marks the final phase of these specific payments, following earlier disbursements made in September for retirees with lower incomes and for survivors’ benefits.
High-Level Economic Endorsement for Debt Settlement
The payment initiative is bolstered by a decisive resolution from the Supreme Economic Coordination Council of the Heads of the Three Branches of Government. The council approved a plan for the government to settle its obligations to the Social Security Organization, amounting to 185 thousand billion tomans.
This settlement will be structured through 70 thousand billion tomans in Islamic financial bonds and 115 thousand billion tomans in shares and assets. Once this resolution is formally communicated and the liquidity from the bonds is secured, the organization will be able to address its commitments to contracted medical centers.
Parliamentary Review for Systemic Strengthening
Concurrently, proactive measures are being taken to strengthen the long-term health of the Social Security Organization. In a session with the Iranian Parliament’s Social Commission, the organization’s CEO presented seven key reform proposals.
These proposals, currently under discussion, are aimed at safeguarding the organization’s resources and refining its operational procedures. Key areas of focus include:
- Settling Government Debts: Formalizing mechanisms for the government to clear its debts through cash, bonds, shares, and assets.
- Expanding Insurance Coverage: Proposing reforms to extend social security coverage to more workers, including weavers and artisans.
- Reforming Hazardous Job Classifications: Revising the criteria for classifying difficult and hazardous jobs to ensure a more accurate and fair system.
- Reintegrating Bank Refah: Proposing the legal return of Bank Refah to the organization to serve as its financial arm.
- Managing Retiree Employment: Examining frameworks that allow retirees to re-enter the workforce in needed sectors without suspension of their pensions.
Commitment to Official Communication Channels
The Social Security Organization reiterates that its Public Relations Department is the sole official source for news and updates. Retirees and stakeholders are advised to follow official channels, including the website Tamin.ir and official social media pages under “Tamin_Media.” A 24/7 response system is also available by dialing 1420 from anywhere in the country.
This coordinated action on both payments and structural reform underscores a committed effort to ensure the sustainability of Iran’s social security system and fulfill obligations to its beneficiaries.