Over recent decades, pension systems worldwide have undergone significant transformations toward developing multi-pillar systems and introducing private pension funds, which operate as complements to public pension schemes. While each country has established specific regulatory frameworks for the establishment and operation of these entities, their implementation in Iran—being an adapted concept—has faced serious challenges regarding compatibility with capital market conditions and the Iranian legal framework. Utilizing a descriptive-analytical method and library-based research, this article examines the characteristics of such funds to address the fundamental question: What should be the legal and regulatory framework for private pension funds? The findings suggest that, given the requirements for independent legal personality and regulatory transparency, a structure similar to the institutional framework of Exchange-Traded Funds (ETFs)—contingent upon addressing deficiencies such as institutional inadequacies in the governance structure and functions of the pension system—could provide a suitable model for private pension funds. Furthermore, adopting a Defined Contribution (DC) framework can minimize legal risks related to property ownership, maintain the correlation between contributions and benefits, and ensure individual and intergenerational equity, thereby safeguarding the property rights of stakeholders' retirement assets. Finally, the regulatory authority must be independent, endowed with sufficient legal power, and operate under the Supreme Council of Welfare and Social Security. Moreover, the enactment of comprehensive, specialized regulations with appropriate enforcement mechanisms is essential to clarify the rights and responsibilities of various market participants and to rectify the inefficiencies of contractual obligations typically set forth in prospectuses or articles of association.