Title: Government Assesses Feasibility of Major Pension Benefit Enhancement
A proposed “special allowance” for Iranian pensioners and civil servants, intended to provide significant financial relief, is currently facing implementation hurdles due to substantial budgetary challenges, according to recent official statements.
Acknowledged Financial Hurdles
Amir Rahbar, an activist in the military pension fund sector, referenced recent comments from the head of the country’s Administrative and Employment Organization. He confirmed that executing the “special allowance” law is not currently feasible due to its heavy financial burden on the state budget. This announcement has tempered the expectations of many employees and pensioners who were awaiting the law’s implementation.
Rahbar expressed surprise that the law was initially passed by the parliament and ratified by the Guardian Council without a clear financial backing plan, questioning the procedural dynamics that led to its approval.
Substantial Fiscal Burden
Detailed calculations estimate the full implementation of this plan would cost the government approximately 600,000 billion Tomans (600 “Hemet”) in the upcoming Iranian year (1404) and around 720,000 billion Tomans the following year. The table below outlines the projected financial load:
| Fiscal Year | Estimated Financial Burden (Hemet) |
|---|---|
| 1404 | 600,000 Billion Tomans |
| 1405 | 720,000 Billion Tomans |
The Administrative and Employment Organization has officially stated that the plan’s execution is conditional upon the allocation of appropriate funds within the national budget.
Legislative Intent and Proposed Solutions
The “special allowance” is rooted in Article 106 of the country’s Seventh Development Plan law. It was designed as a legal mechanism to enhance benefits for government employees and pensioners of various funds, aiming to mitigate the negative impacts of inflation on their livelihoods and cover rising medical and pharmaceutical costs.
Rahbar and other proponents argue that the necessary financial resources could be secured by re-allocating funds from non-transparent and low-impact institutions, thereby enabling the law’s execution without crippling the budget.
Potential Impact and Protected Benefits
If implemented, retirees stand to gain significantly. Reports indicate the benefit could translate to a monthly increase ranging from 4 to 14 million Tomans, depending on individual circumstances. Officials have assured that the non-mandatory parts of retirees’ salaries, such as various allowances and overtime pay, will not be eliminated and their base rights will be preserved.
The framework sets a cap of 25,000 points for this special allowance, which would be converted into a substantial monetary sum. Parliamentary representatives have also suggested that 90% of the amounts designated for active employees should be allocated to retirees.
The Path Forward
Despite the high hopes generated by this proposal, delays in finalizing the executive bylaws and securing the required budget remain the primary obstacles. Pensioner advocacy groups continue to urge the government to find the necessary resources, emphasizing the growing severity of daily living challenges faced by retirees.
For now, pensioners await the final directive for the disbursement of the new funds and are advised to contact their respective pension fund offices for the most accurate and personalized updates.