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Compulsory Pension Saving Scheme – Challenges and International Practices

On December 10, at 11:00 am, presentation and public discussion of the research findings – “Compulsory Pension Saving Scheme– Challenges and International Practices” will be held at Hotel Rooms.

The research findings will be presented by Davit Utiashvili, economist.  Aleksi Aleksishvili, the Chairman at Policy and Management Consulting Group (PMCG), will open the event and Basa Janikashvili, the writer, will moderate the discussion.

Discussions underway about compulsory pension saving scheme, which implies that the government, employee and employer pay a 2%+2%+2% contribution to the mandatory pension fund. The policy research examined possible outcomes of the compulsory pension scheme based on the challenges in Georgia and international practices.

The study addressed the following questions:

  • What kind of risks are associated with compulsory pension saving scheme?
  • What is the part of the population affected by the reform?
  • Will the reform ensure “deserving” pension?
  • How it might impact on budget expenditure?
  • What is the international practices regarding the proper use of funds?
  • How will it affect the companies’ operating expenses, registration and administration process?
  • Will the reform contribute to capital market development?
  • Will the existing pension system (Pay-As-You-Go) maintain sustainable in the coming decades?

The study was conducted by PMC Research, under the project “Policy Research for Sustainable Economic Development”, with the financial support of Konrad Adenauer Foundation.