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Pension System Reform was an Inevitable and necessary Decision, but the Existing Format has many Defects

Lavrenti Chumburidze, head of the Georgian Federation of Professional Accountants and Auditors, says that pension system reform was an inevitable and necessary decision, but the existing format has many defects, and the current format should be revised.

“The country has met this process unprepared. There are technical problems, but these problems are resolvable. In general, when making a system analysis, I have the impression that many  aspects are structured for attracting as much money as possible. I can name two samples: problem 1 – why is it necessary to sign a contract with a person in the case of single-time cooperation, and to pay a single-time fee? This is the wrong way. Problem 2: – payments should be optional for citizens over 40 years old, but they are obliged to pay for 3 months, and only after three months can they withdraw from the system. The authorities were to give these 3 months in advance for planning”, Chumburidze said.

The current pension scheme raises a lot of questions, he added.