PM: Pension Agency Investment Board Members Selected
Georgian Prime Minister Mamuka Bakhtadze stated that Pension Agency Investment Board members have been selected.
The PM made the statement while delivering a speech in the parliament last week. Bakhtadze named the members of the board and said that the accumulated pension system is the right way forward and is is used by successful market economy countries.
“In the Investment Board are qualified persons, among them the former head of the Finnish pension fund, the former head of the French pension investment fund, the former J.P Morgan Deputy Director,” he said.
The five candidates were selected by a special Qualifying Commission, however, they need MP approval to finally take the positions.
The international competition to select the five members of the Investment Board was announced in March. These members will be responsible for determining the investment policy of the Agency over the next five years, developing an investment policy document to be submitted to the Pension Agency Director for approval, modifying investment policy documents, quarterly monitoring and evaluation of all pension investment activities, assessing the compliance of investment activities with the investment policy document, and selecting specialized depositors and asset management companies.
The annual salary for the given position is set to be $60,000 (GEL 160,000). All the travel costs of the employees will be covered by the Pension Fund. The board members will have to travel to Georgia at least once per year. Their working hours will amount to 72 hours, which makes only 9 working days in total.
The chairman of the board will be elected with a majority of votes. In addition, in order to be selected as a member of the investment board, the applicants must have experience of at least 10 years working in the field of finances, investment, economics, risks management or related sectors.
The members of the board are:
1. Timo Viherkenttä, the Executive Officer of the Finnish State Pension Fund, who also worked in the Ministry of Finance in his country.
2. Michael Ridley, an adviser to the Finance Minister of Iceland and former Deputy Director of J.P. Morgan's London representation.
3. Davit Tsiklauri, Chief Financial Officer of the Bank of Georgia until April 2019. He also worked at TBC Bank for a number of years.
4. Olivier Russo, the Director of the Investment Fund of the Pension Agency of France. He also worked at the European Bank for Reconstruction and Development London Branch.
5. Jean-Frederic Paulsen, a former adviser to the Minister of Economy and Sustainable Development of Georgia, Natia Turanava. He was also adviser to Turnava’s four predecessors.
The new law on pension reform, establishing the accumulative pension system, took effect on January 1 this year. Under the law, employees contribute 2% of their pre-tax salary, the employer contributes an amount equal to 2% of the employee’s pre-tax salary, and the government contributes an amount equal to 2% of the employee’s pre-tax salary to each employee’s pension fund.
Georgians have access to their pension funds when they reach an official state retirement age – 60 for men and 55 for women. Self-employed people have the choice to participate in the pension scheme, but at 4% personal contribution.
By Thea Morrison
Image source: sowetanlive.co.za