Rewritten Title: Navigating Financial Challenges: A Look at Pension Payment Timelines and Systemic Reforms
Article:
A message from a concerned retiree, echoing the sentiments of thousands, highlights ongoing challenges with pension payments. The letter details not only delays in receiving monthly pensions but also issues with outstanding adjustments from the previous fiscal year and complications with supplemental health insurance coverage.
To understand the situation, we spoke with Seyed Hassan Hashemi, Head of the Isfahan Province Retirees’ Association. He provided clarity on the recent shift in payment schedules and the broader systemic context.
A Change in Payment Schedule
Historically, retirees from the Social Security Organization received their pensions gradually, starting around the 20th of each month. This year, however, payments have been consolidated into the final three days of the month.
Hashemi explained the reason for this adjustment: “Previously, payments started from the 20th and continued until the 30th. Due to the Organization’s financial constraints, it was decided to process all payments in the last three days of the month.” This change is partly because workshops and companies typically pay their insurance premiums at the month’s end, leaving the Organization with insufficient liquidity in the middle of the month to initiate pension disbursements.
Structural Shifts and Financial Pressures
A significant factor influencing the Organization’s operations was the separation of the Bank of Welfare from its structure. Hashemi elaborated, “The Bank of Welfare was established with the Organization’s resources and for years acted as its financial arm, providing necessary borrowing capabilities. Its recent reclassification and planned transfer under the government’s seventh development program means the Organization has lost a key financial pillar.”
He added, “Now, if the Organization wanted to pay pensions on the 20th, it would need to borrow from other banks at interest rates as high as 23.5%, which is not economically feasible. This necessitated the change in the payment timeline.”
Addressing the Income-Expenditure Gap
The separation from the bank is only part of a larger challenge: a chronic deficit between the Organization’s income and its expenditures.
“The Organization’s income is about 90 ‘Hamt’ (a unit of currency), while expenses, including the healthcare share, reach 125 Hamt. This creates a monthly deficit of 35 Hamt,” stated Hashemi. He attributed this imbalance to policies from previous years, which have placed the Organization under significant strain. Current efforts are focused on managing these inherited financial pressures.
Commitment to Retiree Welfare
Regarding the outstanding pension adjustments from the beginning of the year, Hashemi clarified that the payments are being processed in phases. “The total adjustment amount is approximately 25 Hamt. A portion has already been paid to those with pensions below a certain threshold. Those with higher pensions are scheduled to receive their adjustments in the third phase, later this year.” He acknowledged that while this sum might seem small in the national budget, it is crucial for covering living and medical expenses for retiree families.
Supplemental Insurance and Government Commitments
Hashemi also addressed concerns about supplemental health insurance, confirming that reimbursements have faced delays because the Organization has been unable to transfer its share to the insurance provider on time. Despite these challenges, he noted that no contracts with medical centers have been canceled, and service providers have continued to offer care, demonstrating a collective effort to maintain stability.
The core issue, repeatedly emphasized by Hashemi, is the settlement of government debts to the Social Security Organization. “According to the seventh development plan, the government is committed to paying a significant portion of its accumulated debts to the Organization by 2024. The fulfillment of these commitments is vital for improving the Organization’s liquidity and its ability to meet all its obligations,” he said.
Looking Forward
While pensions are indeed being paid, albeit on a revised schedule, even a short delay can be challenging for those who depend entirely on this monthly income. The Organization remains hopeful that the settlement of outstanding government debts will soon provide the necessary financial stability to streamline operations and ensure the continued well-being of Iran’s retired community. Hashemi concluded with a sense of optimism, stating, “We are hopeful that the government will expedite action on its commitments to resolve these systemic challenges.”