Funded Pension Scheme

    A Pension Agency established following the 2018 pension reform, started collecting and administering the funds of the participants of the mandatory funded pension scheme on January 1, 2019. The funded pension scheme is based on the 2% + 2% + 2% principle of accumulation. The employer transfers on behalf of the employee 2% of the untaxed amount of employee salary to the employee's individual pension account. The same amount is contributed to the employee’s individual pension account by the employer on their behalf. Based on the amount of the employee's salary (but not more than 2% of the untaxed salary), the contribution for the benefit of the employee is also made by the state.


    The Pension Agency and/or the asset management company selected by the Pension Agency are in charge of investing pension savings (pension assets). This investment activity is governed by an investment policy document that provides a framework for managing and investing pension assets, and defines a long-term asset placement strategy. The Pension Agency’s Investment Board approves the investment policy document and monitors the investment of pension assets. The Board consists of five members elected by the Parliament of Georgia. The Investment Board is also responsible for selecting the Specialized Depositary and the asset management company/companies for the accumulative pension scheme. The National Bank regulates and supervises only the investment (and not administrative) part of the the Pension Agency’s work. The National Bank also authorizes/recognizes the asset management companies and specialized depositaries and oversees their work.


    The National Bank has been a governing member of the International Organization of Pension Supervisions (IOPS) since 2019. IOPS membership allows the National Bank to share the experience of other member states in pension fund regulation.