A funded pension for Georgia

Levan Bechkhadze

doi:10.5771/1435-2869-2016-1-119

Contents
- Chapter Expand | CollapseAuthorsPage
- Titelei/Inhaltsverzeichnis
- 3–4 Editorial Béla Galgóczi, Calvin Allen Béla Galgóczi, Calvin Allen 3–4
- 5–22 Non-standard work in Croatia since the outbreak of the crisis: challenges and responses in selected sectors Hrvoje Butković, Višnja Samardžija Hrvoje Butković, Višnja Samardžija 5–22
- 23–54 Labour market transitions of young women and men in Montenegro Dragan Đurić Dragan Đurić 23–54
- 55–66 Migration and remittances: the rise and fall of Albania and Kosovo Bruno S. Sergi, Giacomo Morabito Bruno S. Sergi, Giacomo Morabito 55–66
- 67–88 ‘Our own China’: a review of Turkey’s industrial and employment strategy documents Melda Yaman Melda Yaman 67–88
- 89–98 The Albanian economy in the 25th year of its transition Ela Golemi Ela Golemi 89–98
- 99–108 The institutional effect on public health: an Albanian survey analysis Ermir Shahini, Ermira Kalaj Ermir Shahini, Ermira Kalaj 99–108
- 109–118 Information support and the processes of social dialogue in the Republic of Serbia Spomenka Paunović, Sanja Paunović, Rajko Kosanović Spomenka Paunović, Sanja Paunović, Rajko Kosanović 109–118
- 119–134 A funded pension for Georgia Levan Bechkhadze Levan Bechkhadze 119–134
- 135–136 About the authors 135–136
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SEER Journal for Labour and Social Affairs in Eastern Europe , page 119 - 134

A funded pension for Georgia

Autoren

Levan Bechkhadze

DOI
- doi.org/10.5771/1435-2869-2016-1-119
- ISSN: 1435-2869
- ISSN online: 2942-3384
Abstract

This article is an assessment of the transition from the current Pay-As-You-Go (PAYG) system to a funded pension scheme in Georgia. The project evaluates the nature of the threats to the current system and also discusses the reform planned by the Ministry of Economy and Sustainable Development of Georgia. The proposed reform is compared to various alternative models in order to highlight the flaws and the strengths of the proposal. All the comparisons are made in terms of replacement rates and budget expenditures. From the point of view of the simulations we developed to deliver our assessment, the current proposal’s quasi-mandatory nature (people are made a member of the system but they can opt-out) is problematic; but also at issue is the level of contributions going into the system: the current proposal has contribution rates that are essentially conservative and this will deliver pensions in retirement which have only very low income replacement rates. Nevertheless, the article highlights that some form of reform of the system is absolutely essential.
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