Giorgi Danelia, director of the Pension Agency, said at a committee hearing today that 42% of employees over the age of 40 left the state pension system. The system was launched in 2019 and included 300,000 employees over the age of 40, of which almost half of the beneficiaries left.
At the moment, the assets of the pension fund amount to GEL 2 billion and it includes 1,176,000 members. According to the director of the Pension Agency, among these people, 500,000 citizens regularly make pension contributions, while the rest make contributions for a certain time.
"Approximately 500,000 are regular contributors, the rest are beneficiaries who terminate contributions over time and then resume, depending on their employment status. The scheme is mandatory and all companies must include their employees in a mandatory manner...
There is a pretty simple reason for leaving and that is trust. Of those who could leave, 42% left the scheme, while 58% remained," said Giorgi Danelia.
The partially mandatory pension system was launched in Georgia in January 2019. Beneficiaries in the system contribute 6% of their salary. Of this, 2% -2% accounts for the employee and the employer, and 2% to the state.
