Changes to the law ‘’On Accumulated Pension’’ are planned, by which the period for choosing risk-based portfolios for persons in the accumulated pension system will be extended until January 1, 2028. One million and 400 thousand citizens will automatically remain in the low-risk portfolio and change the portfolio if they wish.
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The Law of Georgia ‘’On Accumulated Pension’’ came into effect on August 6, 2018, and during the first 5 years of its adoption, citizens' pension savings were invested only in low-risk investment portfolios. The 5-year term expired on August 6 of this year.
The pension agency urged citizens to come to the Houses of Justice or the agency's service centers and, if they wish, to change their portfolios by September 6. Those citizens who did not choose the desired portfolio themselves would be automatically distributed to different portfolios based on their age.
- The retirement assets of a participant under the age of 40 at the time of joining the scheme would be allocated to a growing [high-risk] investment portfolio;
- Retirement assets of a participant aged 40 to 50 at the time of joining the scheme - in a mixed [medium risk] investment portfolio;
- Retirement assets of a participant aged 50 or over - in a stable [low-risk] investment portfolio.
According to the Chairman of the Budget and Finance Committee of the Parliament, Paata Kvizhinadze, the draft law, which extends the deadline of September 6 of the current year until 2028, will be considered by the Healthcare Committee in the second reading on September 4.
‘’Practically, these shares will be invested in the likes of Apple, Google, and other enterprises; they will not be lost. We feel that this decision is right, but we cannot make it on our own. First of all, we should ask the pensioners, that is, everyone should be in a guaranteed low-risk group. If the Pension Agency, the National Bank, or the Ministry of Economy inform the public through an advertisement or other means, to explain to the people what this is and how it works, then yes, but there is no such thing now.
The population was not ready and this issue may have caused misunderstanding. That's why we started discussing the new draft law, which has already been passed in the first reading. The second hearing will be held in the health committee on September 4 and the law will probably be accepted by the end of September,’’ said Kvizhinadze.
