Title: Government’s Debt Repayment Plan to Social Security Sparks Scrutiny and Pensioner Concerns
A Pledge and Its Uncertainties
Recent statements by the Head of the Plan and Budget Organization regarding the government’s readiness to settle part of its debt to the Social Security Organization have generated significant reactions among the nation’s retiree community. While the pledge to address the debt is a positive step, the proposed methods have raised questions and concerns.
The official’s suggestion to settle a portion of the debt—reportedly 250 trillion tomans—through the transfer of government-owned properties was met with opposition from the Social Security Organization and retiree representatives. Furthermore, a separate promise to allocate 70 trillion tomans in securities to cover urgent healthcare obligations was criticized for its lack of precise details.
A Deepening Crisis in Healthcare and Entitlements
The situation is compounded by existing financial pressures. The Social Security Organization has reportedly not met its obligations to complementary and life insurers since the start of the year. Consequently, healthcare and pharmaceutical providers have accumulated substantial unpaid claims, leading to reports of service disruptions for Social Security beneficiaries at some university and non-governmental medical centers.
While this year’s budget law allocated 180 trillion tomans for the government’s debt repayment, the method for paying the remaining 110 trillion tomans—beyond the 70 trillion in securities for healthcare—remains unclear. The core of the criticism is the government’s preference for non-cash settlements over direct financial payments.
Retiree Representatives Voice Firm Stance
Nasrollah Daryabeigi, Deputy Head of the High Council of Social Security Retirees, offered a pointed perspective. He stated that the promised funds are a legal and legitimate right of the pensioners, not a favor from the government, and represent only a small fraction of the government’s total debt to the worker’s fund, which he claimed stands at 1,000 quadrillion tomans.
He emphasized that vague promises to pay “soon” do not solve the immediate healthcare crisis for retirees. He also highlighted that overdue payments from the first month of the year for 40% of retirees remain unresolved due to a lack of resources and the organization’s deficit.
Daryabeigi argued that properties and shares cannot be quickly liquidated to address urgent needs. He proposed a direct solution: the Plan and Budget Organization should immediately authorize the transfer of securities to the Workers’ Welfare Bank, which could then liquidate them to pay the Social Security Organization’s healthcare commitments.
Systemic Challenges and Calls for Accountability
The labor activist outlined a chain of consequences: the Social Security Organization’s failure to pay its dues to complementary insurers for over five months directly impacts retirees’ access to medical services. This, he warned, erodes public trust and unfairly targets government officials who are not directly responsible for the payment delays.
He further noted that while the parliament and heads of the three branches of government have issued directives, the Plan and Budget Organization’s hesitation in processing the relevant securities is an internal issue. The delayed payment schedule for October pensions for Social Security retirees—now set for the last three days of the month—was also cited as a source of financial difficulty for many, requiring careful personal budget management.
Pension Payment Schedule for October 2024
For clarity, the official payment schedules for different retiree groups in the current month are as follows:
- Oil Industry Retirees: October 11-14
- Social Security Retirees: October 19-21
- State Retirees: October 20-21
- Military Retirees: October 21-22
The government’s ongoing efforts to manage its financial obligations to the Social Security fund continue to be a focal point of discussion, balancing fiscal management with the critical needs of the nation’s retirees.