BAKU, Azerbaijan, Jan. 12
By Tamilla Mammadova – Trend:
The volume of the state pension funds is reduced during the last days in Georgia, Trend reports via the Pension Agency.
As of December 31, 2020, the volume of the pension fund was 1.178 billion lari ($357.6 million).
Today, the volume of pension fund totals 1.173 billion lari ($356.1 million). However, this figure is higher compared to January 1, but it is still down comparing to December 31, 2020.
According to the Pension Agency, the decline was due to the recalculation of the financial performance of the pension funds late in 2020. Namely, assets of the fund were evaluated with international standards (IFRS) accounting methodology, including the interest accrued on citizens' pension savings. The decrease is related to the updated assessment of accrued yields.
"The Board of Investments specified the assessing methodology for accrued yields on contributions in accordance with IFRS late in 2020. The information was published on the official website of the Pension Agency on December 31. It should be noted that a one-time adjustment of the accrued yield does not change either the citizen’s future Earnings from the investments or their contributions to the pension fund. It only serves to estimate the current value of investments with maximum accuracy for accounting purposes," the statement reads.
As a result of the pension reform, yield up to 100 million lari ($30.3 million) were accrued to the citizens' pension savings. According to the Pension Agency, an average accrued yield on the citizens' savings totals to 10.9 percent.
The partially mandatory pension system in Georgia was launched in January 2019, it includes a total of 1.1 million citizens, whose 6 percent of the monthly salary (2 percent of income tax; 2 percent of the employee; 2 percent of the employer) is transferred to the pension fund.
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