TBILISI, DFWatch–The government in Georgia plans to introduce a system for retirement savings that will include every citizen in the country.
Giorgi Tabuashvili, Deputy Finance Minister, on Thursday met with the parliamentary opposition to discuss the 2014 budget, which includes starting a reform about retirement savings.
Gigi Tsereteli, MP from the National Movement, asked him whether this is a real government desire or a joke.
The MP explained that against a background of low economic growth, reduced job places and deficit it is really a mistake to introduce retirement services.
“If it is a desire, then why it is in the draft of the budget? If it is not a mistake, are you establishing any additional fee or what will be the mechanisms for the retirement services,” he asked.
The deputy minister responded that the reform will start soon and the ministry is working on the mechanisms for doing this in cooperation with the World Bank.
“If we don’t start the reform, we will never be able to go over to this system. This may start on a limited scale at first. The idea is very good,” Tabuashvili added.
Health Minister Davit Sergeenko Friday told journalists that the essence of retirement saving is that ‘the rich assist the poor and the strong assist the weak.’
He said this will concern every citizen and the government started working on this issue in late 2012. Currently, the government is looking at two alternatives for implementing the reform.
“Any citizen who works, allocates authorized money for a retirement fund in order to have guaranteed high pension,” he said.
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