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In 2015, Growth of Pensions not Planned

In total  GEL 1.97 billion were allocated fromthe budget for 2014 on social protection and pensions while  in 2015 it is planned to increase this amount to GEL 2.13 billion.

However, in the draft budget for 2015 this figure increased to GEL 2, 01 billion, which is 5.6% lower than it was originally planned.

Affordable health care and social security is still the government’s priority.

At the same time, the 2015 budget does not provide for pensions increase.

According to the draft budget, a  large-scale pension reform is planned, which will operate on the basis of the accumulation system and the mandatory pension insurance. As a result, the role of private insurance will increase, and pensions will depend primarily on the term of insurance and the size of insurance contribution.

In addition, citizens who have no savings and length of service  will receive a social pension. As for the people of the retirement age who are unable to take advantage of the accumulative system, they will receive a pension not less than the subsistence minimum.

According to the National Statistical Service, by last calculations the cost of living amounts to GEL 133.3 per month.

It should also be noted that in the last 6 months the number of pensioners amounted to 691. 6 thousandwhile more than 20.2 thousand people receive government compensation.

GEL 663 million were  allocated from  the budget on pensions and social payments in the past six months.