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Initial Pages (Refer to the page image) (Refer to the page image) Preface Today, there are two of the most common types of national pension systems: public defined benefit programs, which are funded using a method similar to the pay-as-you-go system, and mandatory private programs based on defined contributions, which generally follow a fully funded system. These two main types of existing systems are publicly accepted; however, there is a third type of social security system that is simpler and requires more attention. Operating costs in a centralized public system with defined benefits are lower than those created in a private system. A fully funded system distributes pension costs more fairly among successive generations of participants and, through investment income, prevents the creation of a larger income gap between the rich and the poor. The present text is a translation of the article "Social Security: Paygo Financing and Privatization Exacerbate Poverty" written by "Bernard Daisalt," which was available on the website >http:www. Org< and was presented at the International Actuarial Conference in March 2002. In conclusion, appreciation is expressed to Ms. Shohreh Shojaei, translator; Ms. Nahid Dousti, internal manager; Ms. Azadeh Mohammadzadeh, technical expert; Ms. Fatemeh Darang, literary editor; Ms. Farzaneh Mousavi Salehi, typesetter and layout designer; and Mr. Ali Hossein Safari, cover designer of this issue of the case report. It is hoped that this issue will receive the attention of respected professors and experts.