747,774 people, 175 mln GEL in Georgia’s accumulative pension system
The goal of the reform is to ensure financial support for citizens of retirement age. Photo: Nino Alavidze/Agenda.ge.
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A total of 747,774 employed people in Georgia are involved in the accumulative pension system, while both pension contributions and interest amounts total 174,047,572 GEL (about $64.46m/€57.31m), says Director of the Pension Agency Levan Surguladze.
- More about Georgia’s pension system can be found here.
Out of 747,774 employed people:
- 187,472 people work in the public sector, and
- 581,439 people work in the private sector.
The number of those above the age of 40 who are able to leave the accumulative pension system is 294,852, of which:
- 78,047 people are employed in the public sector, and
- 228,006 people are employed in the private sector.
A total of 2,915 people have left the pension system so far, said Surguladze.
Surguladze says the goal of the reform is to ensure financial support for citizens of retirement age, while the second goal is the development of the capital market.
Surguladze spoke about the new pension system at the sitting of the Sector Economy and Economic Policy Committee. Photo: 1TV.
In two years we expect to accumulate 1.5 billion GEL in the pension system, in six years – about 5 billion GEL, 80% of which should benefit the country’s economy”, said Surguladze.
He added that the largest investment capital base will be created in Georgia, which will facilitate the development of the capital market.
Several major changes came into play on January 1, 2019. One of the changes is the accumulated pension system – the new programme is mandatory for legally employed people under 40, meaning they will be enrolled automatically. For those above the age of 40, the programme is voluntary, as it is for self-employed citizens.
This month, the employed in Georgia will transfer money to the country’s pension savings system for the first time, as it was launched on January 1, 2019. Starting from January 1, 2019 the accumulated pension system is mandatory for legally employed people under 40, meaning they will be enrolled automatically.
The parliament of Georgia approved a law on an accumulative pension system yesterday, which is part of a larger pension reform initiated by the Georgian government. The government plans to launch a supplementary programme alongside the currently existing universal basic pension which amounts to 180 Gel.
The Government of Georgia plans to launch a new type of pension system known as the accumulated pension program starting from the next year.
A total of 232 million GEL (about 83.30m/€74.42m) has been accumulated in Georgia’s accumulative pension system in the first 150 days of operations of the Georgian Pension Agency, the agency that manages the pension system.
The Georgian Pension Agency’s Investment Board has elected a new chair – Olivier Russo. His first deputy will be Jean-Frederick Polsen, announced the director of the pension agency, Levan Surguladze.
Director of the Pension Agency Levan Surguladze has confirmed that he has submitted his resignation letter a week ago to the Supervisory Board of the Pension Agency.
About 563.5 million GEL ($196.6 mln/€175.3 mln) has been accumulated in the pension fund since January 1, 2019, says the Georgian Pension Agency. 959,548 citizens and 61,165 organisations are registered in the pension saving system.The employed in Georgia transfer money to the country’s pension savings system which was launched on January 1, 2019.