Iran Oil Pension Fund Unveils Plan to Strengthen Financial Independence, Retiree Services

Iran Oil Pension Fund Unveils Plan to Strengthen Financial Independence, Retiree Services
(Monday, August 17, 2026) 08:40

TEHRAN, August 17 (NIPNA) – Iran’s Oil Industry Pension Fund is pursuing a broad overhaul of its operations, investment strategy and digital services as it seeks to strengthen financial independence and secure the long-term payment of retirees’ benefits.

Seyed Mohsen Jamali, head of the Oil Industry Pension Funds, said the fund plans to expand remote services, diversify investments beyond the energy sector, accelerate the collection of outstanding claims and reduce operating costs. The strategy is aimed at creating more stable sources of income while improving services for retirees.

Speaking to Shana, Jamali said the fund’s 52 regional offices have struggled to respond quickly to the needs of a geographically dispersed retiree population. A greater reliance on digital platforms could allow many services to be delivered remotely, effectively bringing the fund’s offices to retirees’ homes.

The shift would also give the fund better data on the volume and type of requests handled by its offices, allowing management to measure performance more accurately than under traditional, largely manual systems.

Digital Push in Healthcare

Healthcare is one of the fund’s most frequently used services, making faster reimbursement a key priority, Jamali said.

Some medical reimbursements can take months, creating difficulties for retirees who need to finance additional treatment before previous claims have been settled. The fund therefore plans to use digital systems and redesigned procedures to accelerate payments while strengthening controls over medical costs.

Jamali said technical oversight is currently strongest in dental services and needs to be expanded to other areas. The fund is also considering a broader range of healthcare contracts to increase the scope and quality of services available to retirees.

Investment Strategy Faces Overhaul

The fund is also reviewing its investment portfolio, with Jamali arguing that long-term sustainability requires a greater focus on returns rather than concentrating investments primarily in the energy sector.

Some energy-sector investments have strategic or national importance but generate limited returns because the prices of certain products and services are regulated by the government, he said.

The fund therefore plans to diversify into sectors including insurance, banking, support services, mining and steel, alongside its existing energy investments.

“The main issue for us is the survival and independence of the fund,” Jamali said, arguing that legal independence is insufficient without a strong and sustainable financial base capable of meeting pension obligations.

The fund will also seek to cut costs by redesigning processes, eliminating unnecessary expenditures and making greater use of specialized investment expertise.

Untapped Oil Industry Revenues

Jamali said the oil industry itself offers significant opportunities to generate additional income for the pension fund.

He pointed to the large volume of welfare, catering and recreational services provided daily across oil companies, subsidiaries, clubs and other facilities. A centralized company owned by the pension fund could potentially capture part of that spending and turn it into a source of revenue.

Insurance represents another opportunity, he said, given the substantial premiums paid to cover oil industry employees, facilities and services. A dedicated insurance structure under the pension fund could retain part of that financial activity within the industry.

Jamali also revived the idea of establishing a specialized bank for the oil sector, arguing that the industry’s large financial flows could support a dedicated institution serving employees and oil companies.

Billions of Tomans Paid to Retirees

The fund has also accelerated payments related to pension equalization, Article 10 benefits and two-month advance pension payments despite financial pressures and wartime conditions.

Jamali said the fund paid a 20% general increase in April and subsequently made additional payments related to equalization and Article 10. Demand for the two-month advance payment increased sharply, with the number of applicants rising from about 40,000 last year to roughly 60,000 this year.

The amount requested for the two-month payment also increased from about 3 trillion tomans to nearly 7 trillion tomans, he said.

Around 14 trillion tomans was paid over three months for pension equalization, Article 10 and the two-month advance payments, according to Jamali.

Recovering Outstanding Claims

To finance those payments, the fund has stepped up efforts to collect outstanding receivables from oil-sector companies.

Negotiations with the National Iranian Oil Products Distribution Company resulted in the recovery of about 5 trillion tomans in long-standing claims, Jamali said.

Other companies still owe significant amounts. Ahvaz Pipe Mills is among the largest debtors, with an outstanding obligation of about 5.5 trillion tomans, he said.

The fund’s need for liquidity makes timely recovery of these receivables a priority, according to Jamali.

Focus Shifts From Pensions to Sustainability

Jamali said Oil Minister Mohsen Paknejad has supported the fund’s reform agenda, including efforts to improve financial sustainability, collect outstanding debts and restructure investments.

The objective, he said, is to transform the pension fund into a financially stronger and more independent institution capable of meeting its obligations while using the broader economic capacity of Iran’s oil industry to create sustainable revenue.

 


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