Underfunded pension funds? Must be Chicago, right?
Nope, it’s Iran. Navid Kalhor reports in AL Monitor:
The most important issues are the imposition of financial obligations by consecutive administrations over the past four decades as well as the approval of populist legislation by various parliaments, and particularly under the previous conservative government. Combined with the pension funds’ own financial problems, the situation is truly dire.
By politically influencing the pension reserves, consecutive governments have mismanaged the assets owned by these funds. At present, most of them are accumulating large, unsustainable and unfunded pension liabilities. In this vein, problems concerning equity, efficiency and management are pervasive. In an interview with business weekly Tejarat-e-Farda on Oct. 8, 2016, Mohsen Riazi, the deputy of the social and economic planning office at the Social Security Organization (SSO), said, ”Policies such as early retirement in difficult and hazardous occupations and renovation of industries that have played a great role in the financial misbalance of the largest pension fund in the country [belonging to the SSO] date back to the Reformist government [1997-2005].”
Growing old has its risks no matter where you live.
