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Photo/ Andrey Okonetchnikov

Georgia Reviews Plan of Pension Reform In Terms of Inflation

Covering the basic needs of the retired persons in terms the inflation will require indexation, and new accumulation component will be added, – the Government will review the report on conducted work and the action plan of reform of pension system.

The Prime Minister said that this is the most important reform, which is being implemented in coordination with the Ministry of Economy, involves all relevant agencies, including the international financial institutions.

“Reform implies better regulation of the existing pension system, in terms of the provision of basic needs of the retired persons by adjusting the pensions to the inflation rates and introducing new savings component, which will be included in next year’s third quarter. Before that we will elaborate a detailed plan covering legislative and institutional changes. Namely, savings system will be co-financed by employee, the employer and the state, thus creating certain degree of social security for future pensioners,” – Prime Minister noted.

Head of the Government stressed that the new system does not mean the abolition of the basic system. Prime Minister also noted that basic pension scheme and accumulation system will operate in parallel, and the indexation of the pensions will occur in line with the inflation.