Pension Fund of Georgia will start investing from September
The head of the Pension Fund Levan Surguladze suggests that the investment of savings will begin from the end of September, according to Public television of Georgia.
The funded pension system has been operating in Georgia since January 1, 2019. According to the developed scheme, with a nominal annual income of less than 24 thousand gel (about 9 thousand dollars) to the pension account of the citizen will be transferred to 6% of the amount of his salary — 2% he will pay himself, 2% — his employer and 2% of the state. In case of annual salary from 24 thousand to 60 thousand gel (about 23 thousand dollars) the state will transfer only 1%. At the same time, the opposition has repeatedly criticized the authorities for the pension reform.
According to Surguladze, the pension Fund has mobilized approximately 320 million gel (more than 109 million dollars) by this time. And more than gel 5 million (more than $ 1.7 million) was added to this amount.
The head of the Pension Fund also commented on the fact that the Fund system left several tens of thousands of civil servants. He noted that most of them are low-income employees, mainly teachers of public schools and kindergartens.
The new pension system is partially mandatory — the funded pension is mandatory only for those who are under 40 years of age. The rest of us have a choice.
In June, the number of those who left the funded pension scheme is about 10% of the total number registered.
The pension Fund States that the reform has two important goals. One of them is long-term and involves the financial provision of citizens at retirement age, so that they have the opportunity to live a decent life. The second is the development of the local capital market.
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Pension Fund of Georgia will start investing from September
The head of the Pension Fund Levan Surguladze suggests that the investment of savings will begin from the end of September, according to Public television of Georgia.
The funded pension system has been operating in Georgia since January 1, 2019. According to the developed scheme, with a nominal annual income of less than 24 thousand gel (about 9 thousand dollars) to the pension account of the citizen will be transferred to 6% of the amount of his salary — 2% he will pay himself, 2% — his employer and 2% of the state. In case of annual salary from 24 thousand to 60 thousand gel (about 23 thousand dollars) the state will transfer only 1%. At the same time, the opposition has repeatedly criticized the authorities for the pension reform.
According to Surguladze, the pension Fund has mobilized approximately 320 million gel (more than 109 million dollars) by this time. And more than gel 5 million (more than $ 1.7 million) was added to this amount.
The head of the Pension Fund also commented on the fact that the Fund system left several tens of thousands of civil servants. He noted that most of them are low-income employees, mainly teachers of public schools and kindergartens.
The new pension system is partially mandatory — the funded pension is mandatory only for those who are under 40 years of age. The rest of us have a choice.
In June, the number of those who left the funded pension scheme is about 10% of the total number registered.
The pension Fund States that the reform has two important goals. One of them is long-term and involves the financial provision of citizens at retirement age, so that they have the opportunity to live a decent life. The second is the development of the local capital market.
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