Iran Approves Major Pension Fund Consolidation to Streamline National System
In a significant move to streamline and unify the country’s pension system, Iran’s Supreme Administrative Council has approved the transfer of the Steel Industry Employees’ Pension and Support Fund to the National Pension Fund.
A Unifying Directive
During its 96th session, the council ratified a resolution to transfer all duties, authorities, assets, liabilities, and obligations of the steel industry fund to the national body. The directive, officially issued on August 17, 2025, is a pivotal step in organizing and integrating Iran’s retirement infrastructure, aiming to create a more cohesive and efficient system for beneficiaries.
Key Provisions and Timelines
A central component of the resolution mandates the Plan and Budget Organization to allocate the necessary credits for paying the pensions of the transferred fund’s retirees within the National Pension Fund’s annual budget. Furthermore, all assets and records of the fund’s active employees and pensioners must be handed over to the National Pension Fund within a maximum of two months from the directive’s issuance.
The resolution also transfers the duties and authority of the steel fund’s CEO and board of directors to their corresponding leadership within the National Pension Fund.
Focus on Efficiency and Integration
In line with goals for structural agility and unification, the National Pension Fund is instructed to reduce its workforce by at least 25% annually from the pool of transferred employees. This streamlining effort is to be conducted in compliance with all relevant labor laws and regulations, ensuring the protection of employees’ acquired rights.
Oversight and Implementation
The Minister of Cooperatives, Labour, and Social Welfare is responsible for the proper execution of this resolution and must report on its progress to the Supreme Administrative Council. The directive was confirmed by First Vice President Mohammad-Reza Aref, underscoring its importance within the government’s broader policy framework.
This consolidation is presented as a strategic measure to strengthen the national pension system, ensuring its long-term sustainability and improved management for all its members.