A New Chapter for Iran’s Retirees: Strategic Payments and Reforms Initiated
In a significant move addressing the financial well-being of its retired community, Iranian authorities have announced a comprehensive schedule for pension payments and arrears, alongside broader institutional reforms aimed at strengthening the national pension system.
Addressing Pension Arrears
The Iranian Social Security Organization has confirmed that the third phase of pension arrears, amounting to over 20 million tomans and dating back to the first month of the current Iranian year (Farvardin), is scheduled for payment by the end of the month of Mehr. This payment, which has been delayed for seven months, marks a crucial step in settling outstanding dues for all retirees.
October 2024 Payment Schedule
A detailed payment calendar has been released to ensure transparency and timely disbursement for various groups:
| Payment Type | Deposit Date(s) | Amount |
|---|---|---|
| Subsidies (Deciles 1-3) | 25th of Mehr | 400,000 Tomans |
| Subsidies (Deciles 4-9) | 30th of Mehr | 300,000 Tomans |
| State Pensioners’ Salary | 29th & 30th of Mehr | Regular Monthly Salary |
| Military Pensioners’ Salary | 30th of Mehr | Regular Monthly Salary |
| Social Security Pensioners’ Salary | 28th, 29th, & 30th of Mehr (by alphabet) | Regular Monthly Salary |
Major Financial Injection and Broader Reforms
This payment drive is supported by a major allocation approved by the Supreme Council of Economic Coordination. The government is set to inject 185 trillion tomans into the Social Security Organization. This substantial sum, comprising 70 trillion tomans in financial bonds and 115 trillion tomans in shares and assets, is expected to significantly alleviate the organization’s financial pressures.
The liquidity will also facilitate payments for supplementary medical insurance and annual salary adjustment arrears.
A Commitment to Structural Reform
Concurrent with these financial measures, Dr. Aladdin Ozji, the Acting Head of the State Pension Fund, has emphasized a new, participatory approach to reforming the pension system. During a provincial meeting in Kerman with heads of local retiree associations, Dr. Ozji outlined a forward-looking strategy.
Key points from his address include:
- Engagement and Dialogue: A commitment to direct, on-the-ground dialogue with retiree associations across all provinces to collaboratively address systemic issues accumulated over the past two decades.
- Productive Investment: A shift in focus towards productive investments and economic activities for the pension funds, moving away from non-productive assets, to generate sustainable returns.
- Strengthening the System: Acknowledging demographic and economic challenges, Dr. Ozji stressed the need to strengthen the fundamental workings of pension funds to ensure future generational security.
- Resolving Supplementary Insurance: Immediate steps have been taken to settle debts with supplementary health insurers, with a goal to resolve the majority of issues in the coming months through cooperation with the government and the Islamic Consultative Assembly.
- Welfare and Quality of Life: Plans to enhance recreational, health, and educational programs at retiree community centers, dubbed “Hope Houses,” to improve the quality of life for retirees.
Dr. Ozji concluded by underscoring that resolving the challenges faced by retirees requires complete coordination between the government, the parliament, and the Plan and Budget Organization, affirming that through shared purpose and participation, a more secure future for the nation’s retirees can be built.