By order of Governing 4 Growth (G4G), project by US Agency for International Development (USAID), ISET has conducted a regulatory impact assessment (RIA) for pensions system reformation.
The mentioned information was confirmed by G4G and ISET. In response to the question, why the mentioned document is not divulged, G4G representatives noted that RIA has been prepared for an internal use of only Ministry of Economy
Why is not the pension reform RIA divulged? – BM.GE applied with this question to Ministry of Economy too.
“This document is for an internal use of Ministry of Economy and its cannot be considered as a valuable document. This is an early report, like many other reports prepared in the process of development of this reform package”, Vakhtang Tsintadze, head of Analytics and Reforms Department of Ministry of Economy, said.
We remind you that starting the second half of 2018, partly mandatory Defined Contribution Pension System will be introduced in Georgia. Citizens above 40 years old will be able to choose whether to continue the program or not, while citizens under 40 years old will be obliged to participate in the scheme. The pension scheme is based on the following formula between an employer, employee and the state: 2% + 2% +2%. This signifies the employer will save 6% of the employee’s monthly salary.
The bill on Defined Contribution Pension System was forwarded by Government to the Parliament at the end of 2007. The bill will be supposedly discussed at spring session.