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  • time : 12:26:15
  • Date : Sat Sep 12, 2020
  • news code : 4424
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Minister Called for Reformation in Pension Funds throughout the Country
On September 7, 2020, the first forum of the professors, researchers, and experts in social security field was conducted with the participation of Mohammad Shariatmadari, the Minister of Cooperatives, Labor, and Social Welfare, at Social Security Organization Research Institute (SSORI). The main objective of the forum was the presentation of the results of SSORI’s recent studies.

After attending to a brief presentation of more than 30 research results, The Minister, with reference to the active participation of start-ups in tech-driven fields and other sciences, emphasized on directing the startups’ activities toward more social issues. “Recently, Civil Servants Pension Organization has employed the creative thoughts of the startups and has developed new products and we hope that this perspective is adopted by SSORI and thus, the way is paved for the effective and different activity of the startups and spinoffs.” He said.

“Strengthening the job security of the workers and protecting their rights, providing unemployment insurance, focusing on the status of the funds and their maintenance, finding a way to tackle the fundamental problems of Social Security Organization (creating a resourceful dialog and structural reformations), considering the job security of the reporters and artists, examining the tough and harmful job status and multilayered welfare, are some of the issues that must be considered in this respect among other things.” He added. “It is necessary to start the development and implementation of the reformations in the Civil Servants Pension Organization as soon as possible.”

In his speech, Hamid Kordbacheh, Faculty Member of Al-Zahra University and the Head of IRC, underscored the presence of a challenging crisis in the pension funds throughout the country and stated: “According to the experiences of similar reformations in other countries, a prompt commencement of the reformation in pension funds is one of the successful and efficient factors that will result in reduced costs in implementation and transition phases. In this respect, the successful and low cost experiences in the cases of Germany and Sweden compared to the costly experiences of Turkey and Greece can be regarded as valuable lessons for the prospective reformations.”

“Moving toward fully funded systems have been experienced in so many pension reformation cases in various countries. Yet, the experiences of these countries indicate that the implementation of structural reformations and adopting fully funded systems in a volatile economic condition especially considering the high inflation rate is utterly futile.” He added. “The other issue in adopting fully funded systems is the policy transition costs that if not taken seriously, will fail the system; the experiences of Chile and Kyrgyzstan are quite evident in this regard”.

Highlighting the necessity of structural reformations in the form of creating multiple layers and consolidating the funds, the Head of IRC, said: “In the [current] volatile economic situation of the country, the following parameters must be considered in the prospective reformation policies: retirement age, early retirement, pension indexation, setting premiums based on reference years, and benefit adequacy; furthermore, a gradual and consistent revision of the parameters is also required.”

Finally, he referred to a prompt commencement of the reformations, their cost management, establishing public dialogs about them as the other issues of significance that were derived from the study of the other countries’ experiences.

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