A mandatory pension plan referred to as the “Accumulated Pension System” (APS), was introduced on 1 January 2019, for workers under age 40. Previously, pension plans for those living in Georgia and reaching retirement age were limited to a public and basic universal flat-rate pension. Georgian citizens, foreign citizens and stateless persons permanently living and working in Georgia will be automatically enrolled in the new pension savings system. For workers under age 40, the option to opt out will be available from 1 April to 31 May 2019. Workers older than age 40 can choose to voluntarily participate.
The employee, employer and government will each contribute 2 percent of the employee’s gross salary to an individual retirement account. However, the government will only contribute 1 percent if the employee’s salary is greater than GEL 24,000 per year and will not contribute at all if the employee’s salary is greater than GEL 60,000 per year. The APS is administered by the Pension Agency, an independent public agency regulated by the Investment Board of the Pension Agency and the National Bank of Georgia.