Title: Social Security Chief Outlines Reform Path, Vows to Protect Pensioners’ Funds
In a comprehensive address, the Chief Executive of Iran’s Social Security Organization (SSO), Dr. Mostafa Salari, detailed the necessity of structural reforms to ensure the long-term stability of the nation’s critical intergenerational social safety net, emphasizing a firm commitment to safeguarding the contributions of retirees and insured workers.
A Pledge to Protect “The People’s Right”
Speaking at an interactive meeting in Fars province, part of a series of “Deliberation for Transformation” forums, Dr. Salari stated that protecting the assets of retirees and the insured from external pressures is a fundamental duty. He acknowledged that while implementing essential reforms would inevitably attract criticism, standing firm was necessary for the organization’s future.
“Some groups who have unjustly gained privileges from the Social Security Organization will certainly raise their voices against reforms,” Salari said. “But to secure the future and sustainability of this fund, whose resources are the right of the people (Haqq-un-Nas), we must withstand these pressures.”
Addressing a Historic Financial Imbalance
The CEO provided a stark overview of the organization’s financial challenges, revealing an unprecedented historical imbalance between income and expenditures. He reported that the SSO’s costs this year amount to 1,500 trillion rials (approximately 1500 hamt), of which 1,200 trillion rials are covered by insurance premium revenue.
This significant gap, he explained, necessitates sourcing additional funds from other avenues, such as returns on investments. He also noted that there is limited room to increase pressure on employers for premium collection, in line with supporting entrepreneurs and the workforce.
Clarifying the Role of Investment Arm
A key point of discussion was the role of the Social Security Investment Company (SHASTA). Dr. Salari clarified that common perceptions about SHASTA’s profitability are often misaligned with reality. He stated that even in an ideal scenario where SHASTA’s efficiency and profits were tripled, it would only cover about 5% of the organization’s required resources.
While stressing the ongoing need to improve SHASTA’s performance, he underscored that its contribution, though valuable, remains a small part of the overall solution.
Curbing Unsustainable Practices
Dr. Salari identified several systemic issues that place an unfair burden on contributors. He criticized past practices where, during periods of high oil revenue, certain privileges were granted using SSO funds. He asserted that such spending from the pockets of the insured is no longer permissible.
He specifically highlighted unfunded premium exemptions, early retirement schemes, and certain hazardous job classifications as practices that unfairly disadvantage premium payers. He argued that the cost of such exemptions should be covered by sources like tax revenue, not by other insured individuals.
Commitment to Service and Transparency
The CEO reaffirmed that providing the best possible services and achieving justice in healthcare delivery are top priorities for the SSO. He assured that issues raised by worker and retiree representatives regarding medical infrastructure and services would be professionally reviewed, with decisions announced transparently.
Dr. Salari concluded with a firm warning against any interference or corruption that threatens the organization’s interests, vowing to use all legal means to confront such actions. “The interests of the Social Security Organization are the interests of over 53% of society and the result of a lifetime of effort by workers and retirees,” he said. “We will confront any action against the interests of the organization.”