Iranian lawmakers have approved legislation to raise the retirement age for men to 62 and increase the number of years of employment necessary to qualify for a full pension, according to state media reports. The bill, which must be approved by the Guardian Council, a conservative-dominated vetting body, seeks to reduce pension fund shortfalls, according to the official IRNA news agency.
In a vote held in the 290-seat parliament on Sunday, 127 lawmakers voted in favor, 78 against and eight abstained, with the remainder absent. The speaker of the parliament, Mohammad Baqer Qalibaf, said on Monday that male employees must work 35 years instead of 30 to qualify for a full pension, according to IRNA. He also said that the retirement age for men will be raised from 60 to 62, while the retirement age for women will remain at 55.
The Iranian Labor Minister, Solat Mortazavi, said that the move is necessary to ensure that pension funds can continue to meet their obligations to beneficiaries. In recent months, several officials have spoken out about the severe shortfalls in pension funds, with then Labor Ministry official Sajjad Padam saying in May that Iran “might be forced to sell” territory to pay pensioners. Padam was sacked shortly after his controversial remark.
The Iranian economy is currently facing a crippling economic crisis, with inflation of around 50% and a sharp depreciation of the rial against the dollar. This crisis has been aggravated by US sanctions reimposed in 2018 following Washington’s withdrawal from a landmark nuclear deal between Tehran and major powers.
The proposed legislation seeks to address the pension fund shortage by increasing the retirement age and increasing the number of years of employment necessary to qualify for a full pension. This would ensure that pension funds can continue to meet their obligations to beneficiaries, thus alleviating the economic crisis.
The legislation will also benefit male employees, who will now have to work 35 years instead of 30 to qualify for a full pension. This will provide them with additional financial security in their later years, allowing them to enjoy a more comfortable lifestyle in retirement.
In addition, the legislation will also benefit female employees, who will still be able to retire at the age of 55. This will provide them with greater financial security and allow them to enjoy a more comfortable lifestyle in their later years.
Overall, the legislation approved by the Iranian lawmakers is a positive step towards alleviating the economic crisis and providing greater financial security to both male and female employees. It will ensure that pension funds can continue to meet their obligations to beneficiaries, while also providing additional financial security to employees in their later years.
