Title: Third Tranche Approved: Social Security Disburses Funds to Fulfill Pension Commitments
Introduction
In a significant move to address pension obligations, Iran’s Social Security Organization has announced the commencement of the third phase of back-pay disbursements for retirees and pensioners. This step is part of a broader, multi-stage government-backed initiative to settle outstanding financial commitments, reinforcing the state’s focus on social welfare and economic stability.
Payment Details and Schedule
The organization confirmed that the gradual and continuous payment of arrears, related to annual pension adjustments and increases due from the start of the current Iranian year (March 2024), will begin for remaining eligible retirees. The disbursement, averaging between 4 to 5 million Tomans per individual, will be processed through agent banks starting this week.
This latest disbursement follows two prior successful phases:
- First Phase: Completed in early September, targeting retirees and disabled individuals with total benefits up to 20 million Tomans.
- Second Phase: Carried out concurrently with September pension payments, directed at all surviving pension beneficiaries.
A Major Economic Endorsement
The financial foundation for these payments was solidified by a recent landmark decision from the Supreme Economic Coordination Council, a high-level body comprising heads of the three branches of government. The council ratified a government plan to settle 185 trillion Tomans in outstanding claims owed to the Social Security Organization.
This substantial settlement is structured through a combination of:
- 70 trillion Tomans in Islamic financial bonds.
- 115 trillion Tomans in shares and assets.
With the formal notification of this approval, the process of allocating and issuing these financial instruments has now commenced.
Ongoing Commitments and Future Priorities
The settlement process is multi-faceted and will require a suitable timeframe for completion. Officials have outlined that once the financial bonds are successfully converted into liquid assets, the organization will prioritize clearing the dues of contracted medical centers and resolving claims related to supplementary medical insurance.
Concurrently, the Social Security Organization has affirmed its commitment to a continuous schedule for settling all remaining pension arrears, ensuring that every eligible individual receives their entitled benefits. This systematic approach underscores the administration’s dedication to fulfilling its social contract with the nation’s retired workforce.