Title: Landmark Pension Reform: Steel Industry Fund to Integrate with National System, Streamlining Administration
In a significant move to enhance administrative efficiency and safeguard pensioner interests, Iran’s Minister of Cooperation, Labour, and Social Welfare, Ahmad Meidari, has announced the integration of the Steel Industry Employees’ Pension Fund with the National Pension System.
The merger, confirmed by the High Council of Administrative Affairs, is a strategic step under the country’s Seventh Development Plan. It focuses on consolidating the boards of directors, supervisory bodies, and administrative structures of the two funds.
Safeguarding Pensioner Rights and Benefits
Minister Meidari was quick to assure that the core benefits of retirees will remain entirely unaffected. “This consolidation will have no impact on the pensions or medical insurance of retirees from either fund,” he stated. He drew a parallel to the existing National Pension System, which successfully manages diverse groups—including academics, judges, and municipal employees—each of whom receives pensions according to their specific regulations.
The primary goal is the elimination of redundant administrative costs and positions. This streamlining is expected to create a more agile administrative structure and strengthen expert capacity through the synergy of human resources.
A Reform Rooted in Law
This initiative is not an ad-hoc decision but is firmly grounded in existing legislation, particularly Article 113 of the Law on Management of National Services. This law obligates the government to take necessary legal measures for the consolidation of all pension funds. A unified board of trustees has been overseeing pension funds in an integrated manner since the 2010s.
The approved resolution from the High Council of Administrative Affairs explicitly guarantees the “preservation of the legitimate and legal rights of the Steel Fund’s beneficiaries.” Key provisions include:
- The creation of an independent account for the Steel Fund’s current affairs and investments.
- The employment of Steel Fund personnel within the National Pension System.
- Facilitated access to state budget allocations for pension and medical payments.
- Access for Steel Fund retirees to the welfare services offered by the National Pension System.
Minister Meidari emphasized his commitment to using all legal capacities to reduce unnecessary administrative costs and improve the livelihood and welfare of retirees. He also clarified that, for now, there are no plans to merge any other pension funds, which will continue to operate under their current procedures.