National Bank of Georgia becomes governing member of International Organisation of Pension Supervisors

Starting January 1, 2019 an accumulated pension system came into play in Georgia. Photo: Nino Alavidze/, 10 Jan 2020 - 13:28, Tbilisi,Georgia

The National Bank of Georgia has become a governing member of the International Organisation of Pensions Supervisors (IOPS) starting December 2019, announced the National Bank of Georgia earlier today.

Starting January 1, 2019 an accumulated pension system came into play in Georgia. 

The accumulated pension system works on a 2+2+2 scheme, with the employee, employer and the government making a contribution of 2 per cent of the gross value of the employee’s income to an individual retirement account. 

Self-employed individuals make a deposit of 4 per cent of their income, and the state matches another two per cent.

The accumulated pension system is mandatory for legally employed people under 40, while self-employed individuals and those over the age of 40 can opt out. 

As of today, more than 700,000 citizens are included in the accumulated pension system and the fund has accumulated more than 500 million GEL ($173.2 mln/€155.9 mln).

The Georgian Pension Agency is regulated by the National Bank of Georgia.

Being a member of IOPS is a step forward and this will give the NBG the opportunity to learn from the experience accumulated by other IOPS member countries in the supervision of pension funds,” reads the NBG statement.

The IOPS was founded in 2004 by the Organisation for Economic Co-operation and Development (OECD) and the International Network of Pension Regulators and Supervisors (INPRS).

The major goal of the IOPS is to improve the quality and effectiveness of the supervision of private pension systems throughout the world, thereby enhancing their development and operational efficiency, and allowing for the provision of a secure source of retirement income in as many countries as possible,” says the IOPS.

The organisation cooperates with other international organizations also involved in pension supervision policy development such as the OECD, the World Bank, the International Social Security Association (ISSA,) the International Monetary Fund (IMF) and the International Association of Insurance Supervisors (IAIS).