Title: Iran’s Social Security Organization Initiates Phased Pension Arrears Payments, Outlines Reform Plan
In a significant move addressing pensioner welfare, Iran’s Social Security Organization (SSO) has commenced a structured payment plan to settle outstanding pension arrears, alongside proposing a comprehensive reform strategy to ensure the fund’s long-term stability.
Structured Payment Schedule Announced
During a recent meeting with representatives of retiree and worker syndicates in Fars province, SSO Managing Director Mostafa Salari announced that approximately 80% of pension arrears for SSO retirees across the country will be settled in three phases by the end of the Iranian month of Shahrivar (September 21, 2024).
Media reports confirm that the disbursement process began from September 2-3, 2024. Retirees who did not receive a salary increase at the beginning of the new Iranian year are now receiving an initial payment of 3 to 4 million tomans as the differential owed for the month of Farvardin.
A Broader Strategy for Financial Revitalization
Central to the discussions was the emphasis on paying “real wages” as a fundamental measure to revitalize the pension fund. Mr. Salari stated that a proposal has been presented to the government and parliament aimed at resolving a significant portion of the SSO’s financial challenges and requirements. The successful implementation of this plan is seen as crucial for placing the organization on a more sustainable financial path.
Addressing Retiree Concerns and Calls for Transparency
A primary concern among retiree syndicates has been the lack of clarity regarding the payment of delay interest or penalties on the late arrears. Many retirees have formally requested that the late payments be calculated with accrued interest, particularly given the economic pressures of inflation. However, no official announcement has yet been made concerning this matter.
In parallel meetings, representatives from the Tehran Retirees’ Association underscored the urgent need for greater transparency and a precise timeline for the settlement of all remaining dues. The association’s head, Ali Dehghankia, highlighted the critical financial imbalance facing the SSO. He noted that the organization’s monthly expenditures are approximately 125 trillion tomans, while its income is only about 100 trillion tomans, creating a significant deficit.
Government Debt and Healthcare Warnings
The issue of government debt to the SSO was also a key point of discussion. Mr. Dehghankia referenced a confirmed debt of 254 trillion tomans, of which parliament had approved the payment of 185 trillion tomans for the current year. Following diligent follow-up by the SSO management and with the support of the President, the Vice President, the Minister of Economy, and the Head of the Planning and Budget Organization, it was decided that 75 trillion tomans of this amount will be allocated to the SSO.
A serious warning was also raised regarding the healthcare budget. It was stated that while the law mandates a specific allocation from insurance premiums to healthcare, the current budget falls significantly short of the required amount. With medical costs reportedly rising dramatically, retirees are facing immense pressure, and the current allocation is insufficient to cover their essential needs.
A Unified Call for Representation and Sustainable Policy
The retiree representatives called for the full implementation of the general policies of social security and Article 29 of the Constitution. A central demand was the official presence of a retiree representative on the SSO’s board of trustees, a right they assert is legally mandated given that retirees are the primary beneficiaries of the fund’s services.
The meetings concluded with a collective emphasis on the necessity of collaborative efforts between the government, the Ministry of Labor, and the SSO management to address the financial challenges proactively, ensuring the vital institution’s stability and its continued service to Iran’s retiree community.