Title: Strategic Plan for Pension Harmonization: A Phased Approach to Uphold Retiree Dignity
In a significant move to address pension reforms, Iranian authorities have detailed a structured, multi-year plan for pension equalization, emphasizing fiscal responsibility and a commitment to the nation’s retirees.
A Lawful and Gradual Implementation
Hojjatoleslam Nasrollah Pejmanfar, Head of the Iranian Parliament’s Article 90 Commission, has confirmed that the pension equalization plan, having been approved by the Guardian Council, is now official law and a recognized government obligation. Given its substantial financial weight, he stated that the implementation must be carried out in a phased, step-by-step manner to ensure sustainability. The Islamic Parliament, he assured, will actively follow up to ensure the fulfillment of all outstanding payments.
Empowering Provincial Management
Highlighting a broader political strategy for efficient governance, Pejmanfar stressed the importance of gradually delegating authority from the central government to provinces. This decentralization is intended to leverage the unique experiences and capacities of each region. He pointed to Kerman province as a leading example, with its proven capabilities in sectors such as mining, industry, and automotive manufacturing.
Addressing Systemic Challenges
The official also acknowledged challenges within specific sectors, including issues in Kerman’s mining industry and the financial pressures on some pension funds. He affirmed that while a physical inspection of the coal mines has not yet been conducted, the matter remains on the agenda. Furthermore, he emphasized the necessity for fundamental solutions to address the financial stability of pension funds.
Coordinated Efforts for Teachers’ Salaries
On the issue of teachers’ salaries, which has been raised at a national level, Pejmanfar clarified that the matter will be pursued in coordination with the Parliament’s Education Commission. Should the issue remain unresolved at that level, the Article 90 Commission is prepared to intervene directly.
Government’s Commitment to Retirees
Echoing the legislative branch’s commitment, the President has recently announced that the pension equalization plan will be re-implemented in the coming year. The government is actively working to alleviate the challenges faced by retirees, with the plan set to result in a direct increase in their pensions. The President underscored the paramount importance of preserving the dignity and status of the retired community.
The Roadmap: Seventh Development Plan
The legal framework, as per the Seventh Development Plan, outlines a clear, three-year trajectory. In the first year, pensions are set to increase by 40% of the salary of an equivalent active employee. This percentage will rise in the subsequent years, culminating in pensions reaching 90% of an active employee’s salary by the third year. The law is designed to be impervious to changes in executive preferences, ensuring its steadfast application.
Annual Increases and Focus on Lower-Income Retirees
Separately from the equalization plan, annual pension increases for Social Security retirees are mandated based on resolutions by the Supreme Labor Council and are independent of the annual national budget. In recent years, these increases have ranged from 20% to 45%, with the highest adjustments consistently directed towards pensioners with the lowest income brackets. This trend is expected to continue, ensuring that the most vulnerable retirees receive the greatest benefit from the state’s supportive policies.