Representatives of the Islamic Consultative Assembly in Iran voted for a gradual increase in the retirement age while reviewing the 'Seventh Development Plan' bill. In a public session on Sunday morning, November 19, they approved a provision stating that 'in order to reduce the imbalance of pension funds' and strengthen the funds' ability to fulfill their obligations, two to five months will be added to the employment years of insured individuals for each additional year. The spokesperson for the Joint Commission of the Seventh Development Plan bill explained that in organizations like education, the average retirement age is between 48 to 50 years, and retirees have no job from age 50 to 78, which is the life expectancy. Mohsen Zangeneh elaborated on the new retirement calculations, stating that about 12 years will be added to the retirement age of someone in their first year of service. According to the law, the minimum retirement age applies to hard and hazardous jobs, where individuals can apply for retirement if they have worked continuously for 20 years or intermittently for 25 years. Thus, the last retirement age before these changes was 55 for women and 60 for men. The website 'Khabar Online' reported on November 6 that the main reason for the government's proposal to change the basis for calculating retirement was the poor condition of pension funds, which financially benefits the government. Previously, several activists and organizations representing retirees and workers had opposed many aspects of the 'Seventh Development Plan.' In this regard, the Iranian Retirees Council stated in a statement on July 2 that the draft of the Seventh Development Plan would lead to 'intensified public misery.' The increase in retirement age is another controversial aspect of the Seventh Plan, and it seems that the government's intervention in the retirees' domain will have significant repercussions, potentially intensifying protests from this group in the coming months. Following the release of the draft of this bill, the Technical Committee for Following the Demands of Civil and Military Retirees also stated that 'the interests and welfare of the oppressed, noble, and honorable retirees have been forgotten.' The parliament's resolution emphasized that this action is being taken 'to reduce the imbalance of pension funds.' Although government officials have repeatedly spoken about the bankruptcy crisis of pension funds in recent years, they have rarely addressed the role of the government in these funds' problems. Many experts believe that the main cause of the bankruptcy of the funds is the actions and management of government officials. The Technical Committee for Following the Demands of Civil and Military Retirees emphasized in June that the status of these funds stems from 'macro-economic problems in the country' and the 'unfair distribution of resources and wealth' in this land. The parliament has been reviewing and approving various sections of the Seventh Development Plan of the Islamic Republic in recent weeks, which, once finalized, will serve as the basis for government planning and budgeting. However, it is noteworthy that six previous development plans approved by the Islamic Republic have not achieved their goals, as acknowledged by government officials, and almost none have been fully implemented. Protests by civil retirees demanding the release of 'imprisoned teachers' and municipal workers in Ilam have been reported, with protests also occurring in various cities across Iran. Workers, official employees, and oil retirees, as well as nurses, protested in seven cities. Ongoing protests by social security retirees and oil and gas workers in several cities continue, with at least five cities witnessing protests by oil retirees and official employees. Protests by retirees in several cities persist, with slogans such as 'We have seen no justice, only lies.' Retirees protested against a 20% increase in wages, stating it does not even reach half of the poverty line.
Parliament Increases Retirement Age
The Iranian parliament has voted to gradually increase the retirement age as part of the Seventh Development Plan to address pension fund imbalances. This decision has sparked opposition from retirees and labor organizations, who argue it exacerbates their financial struggles. The move is significant as it may lead to increased protests from retirees in the coming months.
👥 Key Players
📰 What Happened
The Iranian parliament voted to gradually increase the retirement age as part of the Seventh Development Plan to address pension fund imbalances. This decision has faced significant opposition from retirees and labor organizations who argue it worsens their financial situation.
- The minimum retirement age was previously 55 for women and 60 for men, and the new law adds 2-5 months for each additional year of service.
- Protests by retirees and workers have been reported across multiple cities in response to this decision.
💡 Why It Matters
📚 Background
Iran is facing significant economic challenges, including a crisis in pension funds, which the government attributes to mismanagement and broader macroeconomic issues. The Seventh Development Plan aims to address these challenges but has been criticized for failing to meet previous goals.
🏷️ Entities Mentioned
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