Title: Landmark Pension Reform Proposed to Align Retiree Benefits and Streamline Public Sector
In a significant move to address long-standing disparities, the Iranian government has submitted a pivotal amendment to reform the pension system for retired civil servants. The proposed revision to Article 106 of the National Administrative and Employment Services Law marks the first such initiative in eleven years.
Core Objectives of the Reform
Zabihollah Salmani, Deputy for Human Capital at the National Administrative and Employment Organization, outlined the dual-purpose of the legislation. The primary goal is the “proportional adjustment” of retiree pensions, a measure directly aimed at improving their livelihood.
Furthermore, the official highlighted the reform’s role in broader governmental efficiency. By reducing the significant income gap between active employees and retirees, the amendment is designed to curb the reluctance to retire, a phenomenon known as “employee stickiness.” This, in turn, is expected to help facilitate the creation of new employment opportunities for the younger generation.
Integration with National Development Plans
Salmani confirmed that this initiative aligns with the provisions of the country’s Seventh Development Plan. The plan has already set a trajectory for gradually aligning retiree pensions to 90% of the earnings of active personnel, a process that is currently underway.
The necessity for the reform was attributed to noticeable disparities between different pension funds and an existing imbalance within the national retirement fund itself.
Commitment to a Leaner, More Effective Government
The Deputy also connected the pension reform to the government’s wider mandate for administrative agility. He reaffirmed a legal commitment under the Seventh Development Plan to reduce the public sector workforce by 15%, a step towards a more streamlined and efficient government structure. He noted that an “Administrative Urgencies Program” has already been implemented to enhance service delivery processes and monitor the effectiveness of the national administrative system.
A Call for National Support
Concluding his remarks, Salmani expressed a hopeful expectation for unified support from both the national media and the Islamic Consultative Assembly (Parliament) to ensure the successful passage and implementation of this crucial pension adjustment initiative.