Corporate governance key to oil pension funds' long-term stability

SHANA (Tehran) – The head of the board of directors of the Oil Industry Pension Funds said establishing strong corporate governance is essential to protecting intergenerational assets and ensuring the funds can keep meeting insurance obligations and welfare services.

According to the Oil Industry Employees' Pension, Savings and Welfare Funds, Sekhavat Asadi said continuous evaluation of company performance and assets, along with improved risk management and control mechanisms, remains a top priority.

Asadi, referring to the fund's mission to protect the rights of retirees and survivors, said the pension funds operate as an independent legal and financial entity under their bylaws. As a result, he said, financial and investment decisions must align with the fund's legal mandate and be based on transparency and effective oversight.

He said traditional management approaches are no longer sufficient to address today's challenges and long-term obligations. Continuously monitoring returns, risk and liquidity indicators, and shifting toward data-driven management, are strategic necessities for maintaining the fund's financial strength and resilience against economic constraints, he said.

Ongoing Evaluation of Companies, Assets Called Essential

Asadi said investments made by the fund are not an end in themselves. Investment policies must be designed to directly support pension, health care and other welfare obligations to beneficiaries, he said, which is why continuous evaluation of company and asset performance, along with stronger risk controls, is a priority.

He also cited the collection of outstanding debts as a pillar of financial discipline and asset protection, saying timely recovery of overdue payments strengthens cash flow and supports the fund's ability to meet its obligations. He said this effort is being pursued rigorously within the fund's regulatory framework.

Asadi concluded by saying the trust of the retiree community is the fund's most valuable asset — one reinforced through transparent governance, responsible decision-making and professional resource management, with the ultimate goal of ensuring the fund's long-term sustainability and preserving beneficiaries' dignity.

News ID 2457413

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