Public Law
Mojtaba Ghasemi; Hasan Johari
Abstract
Introduction
Pension funds play a crucial role in Iran by providing retirement provisions through paying pension benefits to retirees and their eligible survivors. However, the pension funds currently experience a critical situation due to a significant disparity between their financial resources ...
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Introduction
Pension funds play a crucial role in Iran by providing retirement provisions through paying pension benefits to retirees and their eligible survivors. However, the pension funds currently experience a critical situation due to a significant disparity between their financial resources and pension liabilities. This crisis stems from several factors, including the generosity of pension programs (in terms of retirement age and conditions and scope of support for survivors), demographic changes, and increased life expectancy leading to more pensioners and fewer contributors. Additionally, the challenges such as low returns on investment; transference of loss-making enterprises to the funds in order to settle government debts; and structural, governance, and management issues have exacerbated the situation.
In fact, the primary factor contributing to the current crisis is the inefficiency of laws and regulations governing the Social Security Organization (SSO) and the Civil Servant Pension Fund (CSPF). The existing regulations on the governance of pension funds have changed the government’s role from regulator and guarantor to an intervening party. Consequently, most fund managers are appointed by the government, which sidelines beneficiaries and stakeholders from the governance process. Such a governmental structure, coupled with the lack of stakeholder involvement, exacerbates the problem of representation arising from the separation of ownership and management. This issue manifests itself not only in the traditional form but also in the political form.
To address the problem of representation in pension funds requires supervision and increased stakeholder participation in fund management in order to enhance transparency, accountability, and managerial accountability. Therefore, it is crucial to revise laws and regulations to empower stakeholders’ role in the administration of pension funds. In this respect, the present study aimed to analyze the deficiencies in the laws and regulations on the governance and management of pension funds in Iran through the lens of corporate governance principles and mechanisms.
Literature Review
The regulations on the governance and management of pension funds play a crucial role in their performance. Establishing procedures and processes that promote good governance in pension funds can significantly contribute to the prevention and resolution of the current crisis. In this respect, corporate governance and its principles and mechanisms can serve as a vital tool for assessing the governance and management of pension funds. Pension funds in Iran, particularly SSO and CSPF, lack indicators of good governance in line with the corporate governance principles. The stakeholder involvement in company management, a fundamental right contributing to the mitigation of representation problems, is largely absent from the governance structure of Iran’s pension funds. Moreover, there are no legal requirements mandating transparency and reporting of the performance of pension fund managers. Additionally, the failure to recognize managers’ legal responsibility for their decisions, often influenced by their political affiliations, exacerbates the lack of accountability on the part of managers.
Materials and Methods
The present study used a descriptive–analytical method to address the research questions.
Conclusion
Considering the corporate governance mechanisms, Iranian pension funds (esp. SSO and CSPF) lack optimal conditions. The independence of the board of directors, a crucial aspect of corporate governance aimed at achieving its goals and principles, is fundamentally absent in Iranian pension funds. Moreover, the supervisory structure of pension funds fails to consider tripartism and the role of stakeholders. In addition, the absence of independent audit and actuarial committees within the supervisory framework severely undermines its effectiveness.
The Audit Organization is tasked with auditing pension funds as per Paragraph (d) of Article (17) of Act on Structure of Welfare and Social Security Comprehensive System. However, the Audit Organization lacks the necessary independence and impartiality due to its governmental affiliation. Furthermore, the absence of official actuarial mechanisms to calculate the resources and liabilities of the funds, their exclusion from the establishment of rules and regulations related to fund liabilities, and the lack of public disclosure of report results to stakeholders and beneficiaries all have contributed to increased pension liabilities and financial instability of Iranian pension funds.
Mohammad Jalali; Saeed Barkhordari
Abstract
The Prosecution is one of the most important public institutions in the realization of the rule of law and the protector of political rights and freedoms. However, there is no theoretical basis or practical practice regarding the position of this institution among the three powers. Affected by the legal ...
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The Prosecution is one of the most important public institutions in the realization of the rule of law and the protector of political rights and freedoms. However, there is no theoretical basis or practical practice regarding the position of this institution among the three powers. Affected by the legal structure and historical and political issues of each country, four factors have been influential in the formation of the position of the Prosecutor's Office: the executive structure; the structure of the judiciary; the independent prosecution; and the elected prosecution, which makes it impossible to introduce a desirable and ideal model for all systems. However, this paper will attempt to examine the four factors and concerns about the prosecution's position among the three powers. These factors include: the independence of the prosecutor's office; the separation of the Prosecution and Adjudication; and the need for prosecution policy-making and accountability. For the desirable position of the prosecution among the powers, it is necessary to strike a balance among these four concerns and effective factors in accordance with the political situation and the historical context of the formation of powers in any legal system.
Aِli Asghar Pourezzat; Ghazaleh Taheri Attar
Volume 8, Issue 21 , December 2006, , Pages 79-119
Abstract
Today’s world situation is the result of various historical incidents.
During these accidents and changes, some civilizations manifest, grow
and collapse. The study and analysis of the effecting factors on
stability or disintegration of a civilization could be serving as an
example for the ...
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Today’s world situation is the result of various historical incidents.
During these accidents and changes, some civilizations manifest, grow
and collapse. The study and analysis of the effecting factors on
stability or disintegration of a civilization could be serving as an
example for the existing civilization and developing societies very
much. The Iranian civilization is one of the oldest and most effective
civilizations in the history of mankind, and Iran land as the cradle of
this civilization, has experienced many governments and dynasties.
Some of them have declined and finally collapsed for unknown
reasons while they had pride, glory, and a high level of political and
economical power; like Achaemenian, Sasani, Ashkabni, Safavi, and
etc.
Achaemenian Empire with a background of 230 years governing on
the world was declined by a young, low experienced, ambitious army
general. Establishing this Empire which involved different and
various races, languages and cultures, was a big revolution in the
world history of governance. The world for the first time enjoyed a
united and centralized government. It was only Roman Empire that
could compete with it years later. The main question of this study is
that how an empire and civilization with this level of power, glory and
domination gradually collapsed from inside. It seems that many
reasons involve in the decline and collapse of a civilization, or its
survival and stability. In this study it was assumed that some factors
such as justice, responsibility, freedom and national identity lead to
stability. On the other hand, factors like despotism, narcissism, and
discrimination cause acceleration in civilizations' collapse. The study
of historical evidences confirms the hypothesis that injustice is one of
the most important factors which cause internal collapse, and
intelligence level decline in these governments.