Title: Navigating Pension Transfers: A Guide to Consolidating Retirement Benefits in Iran
In a move that provides clarity for many Iranian workers, the process for transferring pension contributions between various national funds has been outlined, offering a pathway for citizens to consolidate their retirement benefits. This system underscores the government’s focus on creating structured and accessible social welfare programs.
A Network of National Pension Funds
Iran’s workforce is served by a comprehensive network of dedicated pension funds. These include, but are not limited to, the Civil Servants Pension Fund, the Armed Forces Pension Fund, the Villagers and Nomads Pension Fund, as well as funds for bank employees, the national broadcasting organization (IRIB), and the oil company. For individuals who have moved between jobs covered by different funds, a clear procedure exists to transfer their previous service records to the Social Security Organization.
Key Procedures and Timelines
A critical aspect of this process is the timeline. Once an insured individual submits a request to transfer their pension contributions to the Social Security Organization, a maximum period of one year is allotted to complete the procedure. If the transfer is not finalized within this timeframe, the initial request becomes void. The applicant must then submit a new request, with any outstanding balance recalculated based on the new submission date.
Calculating the Transfer Balance
The financial calculation for the transfer varies depending on the circumstances of the individual’s departure from their previous employment.
For Resignation or Contract Termination: Individuals who left their previous job due to resignation, dismissal, or the end of a contract (excluding buyouts) must pay a balance calculated as follows:
(18% * Daily Wage * Duration of Service in Days) - Total Transferred Contributions = Outstanding Balance
The “Daily Wage” used is the higher of the final wage from the previous fund or the current wage at the Social Security Organization at the time of the transfer request.For Service Buyouts: For those who had their service bought out from their previous employer, the formula is:
(15% * Daily Wage * Duration of Service in Days) - Total Transferred Contributions = Outstanding Balance
Here, the “Daily Wage” is the higher of the legal minimum daily wage in the year of payment or the final wage from the previous fund.
A Crucial Legal Benchmark
The regulations establish a key legal benchmark date of April 29, 2001. For individuals whose employment was terminated (for any reason, including buyout) before this date, their entire previous service record will be accepted by the Social Security Organization towards their pension eligibility, regardless of when they apply for the transfer.
However, for those whose employment ended after this date, or who began contributing to Social Security after this date, an additional condition applies. To be eligible for a Social Security pension, they must have at least 10 years of direct contribution history to the Social Security Organization itself, in addition to any transferred service records.
This structured framework provides a clear, lawful process for Iranian citizens to manage their retirement planning, ensuring that years of service across different public and private sectors can be consolidated for a secure future.