Assessing the sustainability of the pension system Case study: Social Security Organization

Introduction: Iranchr(chr(chr(chr(chr('39')39chr('39'))39chr(chr('39')39chr('39')))39chr(chr(chr('39')39chr('39'))39chr(chr('39')39chr('39'))))39chr(chr(chr(chr('39')39chr('39'))39chr(chr('39')39chr('39')))39chr(chr(chr('39')39chr('39'))39chr(chr('39')39chr('39')))))s social insurance system including 18 pension funds, which are part of the social protection system, covering about 68% of the working population and about 46% of the elderly population. Today, since the countrychr(chr(chr(chr(chr('39')39chr('39'))39chr(chr('39')39chr('39')))39chr(chr(chr('39')39chr('39'))39chr(chr('39')39chr('39'))))39chr(chr(chr(chr('39')39chr('39'))39chr(chr('39')39chr('39')))39chr(chr(chr('39')39chr('39'))39chr(chr('39')39chr('39')))))s pension funds are one of the main players in the social and economic spheres of the country, the related crisis has a wider dimension. Failure to adopt appropriate strategies for managing this crisis will pose very serious risks to the susatinability of the countrychr(chr(chr(chr(chr('39')39chr('39'))39chr(chr('39')39chr('39')))39chr(chr(chr('39')39chr('39'))39chr(chr('39')39chr('39'))))39chr(chr(chr(chr('39')39chr('39'))39chr(chr('39')39chr('39')))39chr(chr(chr('39')39chr('39'))39chr(chr('39')39chr('39')))))s economic, social and political dimension. However, what has become a major concern for policy makers in the field of social security is the worrying situation of pension funds, which have reached the level of concern and warning with the sustainablity and have even crossed this border in some of these funds. With the aim of sustainability, this study examines the financial status of the Social Security Organization. Method: This study uses cohort methodology and using demographic and economic data to estimate the financial capacity of the Social Security Organization. Findings: The most important economic challenges of the Social Security Organization are: a generous pension formula including low retirement age and non-payment of government share contribution. Conversation: The reform proposals should be in the form of a pension formula adjustment. Increase the age and history of retirement and plan for unpaid government contributions in order to pay the governmentchr(chr(chr(chr(chr('39')39chr('39'))39chr(chr('39')39chr('39')))39chr(chr(chr('39')39chr('39'))39chr(chr('39')39chr('39'))))39chr(chr(chr(chr('39')39chr('39'))39chr(chr('39')39chr('39')))39chr(chr(chr('39')39chr('39'))39chr(chr('39')39chr('39')))))s insurance contribution regularly.