Title: Landmark Pension Reform Proposal Aims for Equity and Administrative Modernization
In a significant move to address long-standing economic and administrative challenges, the Iranian government has submitted a major legislative proposal aimed at overhauling the pension system for civil servants.
A Long-Awaited Legislative Update
Zabihollah Salmani, Deputy for Human Capital at the country’s Administrative and Employment Organization, announced the submission of an amendment to Article 106 of the Civil Service Management Law. This initiative, the first of its kind in 11 years, is centrally focused on “pension adjustment” to ensure fairer benefits for retirees.
Dual Benefits: Supporting Retirees and Creating Opportunities
According to Salmani, the proposed legislation serves a dual purpose. Primarily, it seeks to secure the livelihood of pensioners. Secondly, it is designed to help control the reluctance of employees to retire—a phenomenon often attributed to the significant pay gap between active employees and retirees. By addressing this “adherence to post,” the reform is expected to positively impact youth employment by opening up new job opportunities for the younger generation.
The government’s commitment to this issue is further embedded in the Seventh Development Plan, which has already envisioned a gradual alignment of pensions to reach 90% of the earnings of active employees.
Foundations of the Reform
Salmani outlined the key rationales behind the proposal. A noticeable disparity in benefits between different pension funds, coupled with an imbalance within the main pension fund itself, were cited as primary factors necessitating this legislative action.
Broader Administrative Modernization
The pension reform is part of a larger framework of administrative streamlining. Salmani confirmed the government’s determination to fulfill a legal mandate under the Seventh Development Plan for a 15% reduction in human resources and the continued “streamlining and restructuring” of administrative bodies. An “Administrative Emergencies” program has also been implemented to enhance service delivery processes and monitor the efficiency of the national administrative system.
A Call for National Support
In his concluding remarks, Deputy Salmani expressed a hopeful expectation for widespread support from all media outlets and the Islamic Consultative Assembly (Parliament) to help ensure the successful passage and implementation of this crucial pension adjustment initiative.