Parliament approves changes to Accumulated Pension Law

The Georgian Parliament approved amendments to the Law on Accumulated Pensions in the third reading under an expedited procedure, with 76 MPs voting in favor. The amendments provide for the conditional exemption of employers from fines imposed by the Pension Fund.

The issue was presented to Parliament by Paata Kvizhinadze, chair of the Finance and Budget Committee.

The legislative package provides for the conditional exemption of employers from administrative penalties — fines imposed by the Pension Fund after May 1, 2025 — provided that the employers fully pay the required pension contributions and late-payment penalties no later than December 31, 2026.

In addition, the amount of the fine will be reduced. Instead of GEL 500 for a first violation and GEL 1,000 for a repeated violation, the fine will be set at GEL 300 in both cases.

The bill also establishes new rules governing violations of the obligation to make pension contributions.

In particular, it defines the concept of “lost benefit” and establishes procedures for identifying violations of the obligation to make pension contributions, imposing fines on employers, calculating lost benefits for participants, enforcing and appealing such decisions, as well as allowing unpaid pension contributions and lost benefits to be paid in installments.

The amendments also provide for the establishment of a Dispute Resolution Service within the Pension Fund and define procedures for reviewing complaints and making decisions.