“We Need Rapid and Fundamental Reforms," - MP Irakli Kovzanadze

“We need rapid and fundamental reforms. One of such is the Pension System Reform” noted MP Irakli Kovzanadze, Fiscal Committee Chair of the Parliament of Georgia at the public-private sector dialogue held at the Parliament of Georgia. Key topic of the discussion was a Draft Law of Georgia on Savings Pension: Advantages and Challenges. 

As noted by MP Kovzanadze, bulk of the State Budget (almost 45%) is social spending, but pensioners are still the most vulnerable group of the society. According to him, current monthly pension (180 GEL) is far from being sufficient to ensure the decent livelihood. Fiscal Committee Chair believes that incremental increase of pensions by 10, 20 or even 60 GEL will not solve the problem in a long-run. Hence, it is essential that fundamental changes are made towards this end. 

“We need rapid and fundamental reforms in various directions to let the economy of Georgia develop and grow, respond to modern challenges and become competitive. One of such directions is the Pension Reform and namely, I have in mind the introduction of a Savings Pension Model. It is an internationally practiced method, which implies co-participation of the employer, employee and the state, i.e. contributions and solidarity responsibility of three parties” added MP Irakli Kovzanadze, Fiscal Committee Chair of the Parliament of Georgia.