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Private Sector’s Position on the Introduction of Accumulative Pension

Published: October 22, 2013 | 2:36 pm
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What does the accumulative pension programme consist of, and will the private sector become involved in it? The government has already begun working on the new pension system. The Deputy Chairman of the Health Committee Guguli Maghradze has told TV3 that the system aims to introduce pensions for all sections of society, according to experience and merit. However, the system will involve a monthly contribution from the salary to the pension fund. According to Mr. Maghradze, the accumulative pension mechanism could function both through a State and a private fund, and in addition, a fixed State contribution system could be put in place.
The Insurance company GPI Holding regards the possibility of the establishment of a State fund as part of the pensions reform as an alternative for the development of private pension funds. According to company spokeswoman Tina Stambolishvili, the volume and membership of GPI Holding’s pension fund is currently meagre.
According to health expert Tamar Tsintsabadze, the pension reform will make the existing processes in this sector more transparent and democratic. In addition to the compulsory accumulative pension mechanism, a so-called third level could be established with the private sector’s involvement, the expert adds.
The Health Committee has stated that preliminary works will be carried out next year for the establishment of the accumulative pension fund, which could then begin to operate by 2015.

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