On Funded Pension

 

 

LAW OF GEORGIA

ON FUNDED PENSION

 

Chapter I – General Provisions

 

Article 1 – Scope of the Law

1. This Law regulates relations associated with funded pension.

2. The relations associated with funded pension shall be implemented independently of the state pension and state compensation.

3. The purpose of this Law is to ensure the management of pension assets within the funded pension scheme, in accordance with the interests of participants.

4. This Law shall apply to:

a) employers;

b) citizens of Georgia;

c) foreign citizens having permanent residence permits and stateless persons having permanent residence permits in Georgia;

d) activities related to funded pension scheme that are carried out by asset management companies, specialised depositories, commercial banks, insurance companies and other entities.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 2 – Definition of terms

For the purposes of this Law, the terms used herein have the following meanings:

a) affiliated person – in the case of any person:

a.a) an equity holder with more than 10% of voting rights, or a holder of equity of less than 10 % who can directly or indirectly influence the process of decision-making by the person;

a.b) any other legal person, whose direct or indirect holder of more than 25% of voting shares at the same time owns, directly or indirectly, more than 25% of voting shares in that person;

a.c) a person making an investment or an administrative decision or any members of a supervisory body;

b) asset management company – a legal entity with a fiduciary duty licensed by the National Bank or a relevant regulator of another state for the purpose of managing assets, which carries out management of pension assets, or an entity created or established by an international organisation the member state of which Georgia is, for the purpose of managing assets and/or providing investment advice, and which is not subject to licensing by the regulators of individual countries;

c) asset placement strategy – an investment strategy that involves a targeted indicator for the placement of different classes of assets in an investment portfolio, a basis for determining the indicators, and permissible limits of deviation from a targeted indicator, which depend on the risk tolerance of the Pension Agency and/or an asset management company (companies), an investment period and investment objectives and which may change over time in accordance with the change of said parameters;

d) funded pension scheme – a pension scheme for certain pension contributions, where the pension contributions to be made in favour of a participant are calculated under the procedure established in accordance with this Law and are reflected in his/her individual retirement account, and the benefit received is calculated only after taking into account the implemented pension contributions and revenue, expense, surplus revenue, loss and other incomes (if any) credited to an individual retirement account, and the pension/pension assets are paid out in accordance with this Law;

e) employer – a person who pays for the work performed and/or the service rendered by an employee;

f) employee – a natural person who, irrespective of whether his/her salary is taxable in accordance with the tax legislation of Georgia, or whether he/she is exempted from payment of income tax, or whether the income tax payable from that salary is subject to taxation at source:

f.a) performs obligations within the scope of the relations that are regulated by the civil legislation of Georgia and/or by the labour legislation of Georgia or another state;

f.b) performs obligations related to his/her service in the defence forces of Georgia, law-enforcement bodies or in other equivalent bodies;

f.c) is a head (director) or an acting head (director) of an enterprise or an organisation;

f.d) is employed in a public institution in accordance with the Law of Georgia on Public Service;

g) lump-sum payment – lump-sum payment of the total value of the pension assets registered in an individual retirement account;

h) National Bank – the National Bank of Georgia;

i) self-employed – an entrepreneur natural person defined by the Tax Code of Georgia, who is registered as a taxpayer under the legislation of Georgia;

j) income of a self-employed person:

j.a) in the case of an individual entrepreneur – taxable income received from entrepreneurial activities provided for by the Tax Code of Georgia;

j.b) in the case of a natural person provided for by Article 1(1) or (2) of the Law of Georgia on Entrepreneurs – taxable income;

k) individual retirement account – an accounting form created for a participant by the Pension Agency that reflects the pension contributions made in his/her favour, information on the portfolio units owned by a participant, the results of pension asset management, the amounts of money withdrawn in accordance with this Law and all the related expenses;

l) participant – an employee or a self-employed person who has become a member of the funded pension scheme;

m) fiduciary – a person defined by Article 15 of this Law;

n) pension – an amount received/to be received in accordance with Articles 32 and 33 of this Law as a result of the participation of a participant in the funded pension scheme and reflected in his/her individual retirement account, which is calculated, fixed and paid to the participant in the amount and according to the procedure defined by this Law and by the Pension Agency under this Law;

o) programmed withdrawal – the periodic withdrawal of a pension from an individual retirement account in accordance with this Law;

p) investment policy document – a document developed by the Investment Board or an asset management company provided for by Article 29 of this Law,  which defines the investment strategy and principles and by which the Pension Agency/the asset management company defined by Article 28 of this Law and/or an asset management company (companies) respectively is (are) guided when making decisions regarding the management and investment of the pension assets of the participants;

q) retirement age – the age determined by the Law of Georgia on State Pensions;

r) pension assets – a unity of assets registered in an individual retirement account. The Budgetary Code of Georgia shall not apply to pension assets;

s) pension contribution – a sum of money paid on behalf and at the expense of a participant, in his/her favour, for reflecting it in the individual retirement account of the participant, in the amount and under the procedure defined by this Law;

t) Supervisory Board – the Supervisory Board of the Pension Agency, which consists of the Minister of Finance of Georgia, the Minister of Economy and Sustainable Development of Georgia, the Minister of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs of Georgia, and the Chairperson of the Investment Board, and each member of which occupies the position of a member of the Supervisory Board based on his/her own position;

u) government security – any security issued by the state of Georgia;

v) State Treasury – the Treasury Service, a state subordinated agency of the Ministry of Finance of Georgia;

w) Investment Board – the Investment Board of the Pension Agency, which defined  the investment policy related to pension assets under this Law and carries out the activities provided for by the legislation of Georgia;

x) electronic system – an electronic system of the Pension Agency for the administration of pension contributions, supported by the information technology, and the related database;

y) specialised depository – a legal entity with a fiduciary duty licensed by the National Bank or a relevant regulator of another state, or a branch thereof, which provides the Pension Agency or an asset management company (companies) provided for by Article 29 of this Law, on the basis of the related agreement, with specialised depository services, and the National Bank in the case defined by Article 26(13) of this Law;

z) investment horizon – a period of time during which the Pension Agency and/or an asset management company (companies) plan(s) to place an investment in assets of a certain class or in an investment portfolio, taking into account risk tolerance determined in accordance with an asset placement strategy, and a desired investment income;

z1) investment portfolio – a set of investment instruments, in which the composition of instruments depends on the investment period, the investment objectives and the risk tolerance;

z2) temporary special administration regime – a temporary administration regime of the Pension Agency, which starts in accordance with this Law and which aims to ensure the continuity of activities related to the investment of pension assets by the National Bank;

z3) investment fund unit – a financial instrument, which is a stock/an equity in an investment company or a share in a joint investment fund;

z4) Revenue Service – a legal entity under public law within the governance of the Ministry of Finance of Georgia;

z5) disability – a condition defined by the Law of Georgia on Medical and Social Examination, which is confirmed by an extract of the medical and social examination act issued by a relevant medical institution with the right to establish the status of disability, and which assumes the status of moderately, significantly or severely expressed disability;

z6) selection commission – a commission that ensures the selection of the candidates for members of the Investment Board;

z7) salary – the income received within an employment relationship, and from the provision of services, which is taxed at source, and the income received as salary provided for by Article 101 of the Tax Code of Georgia in accordance with the tax legislation of Georgia (except for an income which, in accordance with Article 104 of the Tax Code of Georgia, is not part of an income received from a Georgian source, and an income received through royalties, rentals or leases, and an investment income);

z7¹) annual salary/annual income – for a participant, the salary/income of a self-employed person received as of 1 January through 31 December of one year, or for a new participant who has become a member of the funded pension scheme, the salary/income of a self-employed person received as of becoming a member through 31 December of the same year;

z7²) (Deleted – 1.11.2023, No 3601);

z7³) risk management – a combination of co-ordinated actions of the structural units and governance bodies of the Pension Agency, through which the risk management is carried out at the Pension Agency;

z7⁴) operational, compliance and reputational risk management – a document combining a framework of the operational risks and their management, the information security policy, a business continuity framework, a fraud, bribery and corruption risk framework, a reputational and communication risks framework, and a disclosure, legal compliance and conflict of interest framework;

z7⁵) investment risk – an investment risk, which includes:

z7⁵.a) the probability of a negative deviation from the target revenue, which, in its turn, may be caused by a market risk, inflation risk, credit risk, counterparty risk, liquidity risk and an assessment risk;

z7⁵.b) any risk related to the investment activity and/or based on it;

z7⁶) non-investment risk – a non-investment risk of the Pension Agency, which includes:

z7⁶.a) strategic risk, operational risk, information security risk, legal, regulatory, compliance and reputational risks;

z7⁶.b) any risk related to the non-investment activity and/or based on it;

z7⁷) risk aggregation – the integration of an investment risk and a non-investment risk into one risk for the assessment of the overall risk of the funded pension scheme;

z7⁸) pension recipient – a person who was a participant and who receives pension/pension assets under the procedure defined by this Law and the Pension Agency;

z7⁹) portfolio unit – a unit certifying the ownership of a share in an investment portfolio provided for by this Law;

z7¹⁰) investment fund engaged in trading at a stock exchange – an investment fund the units of which are traded at a recognised foreign stock exchange defined by the legislation of Georgia and which updates financial indicators in accordance with the pre-determined investment policy;

z7¹¹) investment fund – an investment fund defined by the Law of Georgia on Investment Funds, including the investment fund engaged in trading at a stock exchange.

Law of Georgia No 895 of 2 August 2021 – website, 4.8.2021

Law of Georgia No 3531 of 21 September 2023 – website, 12.10.2023

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Chapter II – Funded Pension System

 

Article 3 – Funded pension scheme

1. (Deleted – 1.11.2023, No 3601.)

2. Joining the funded pension scheme and making pensions contributions shall be mandatory for all employees, with regard to each salary income  earned after the entry of Article 21 of this Law into force, except for employees who have attained the age of 60 (for males) or the age of 55 (for females) before the entry of this Law into force.

3. Joining the funded pension scheme shall be voluntary for all the employees who have attained the age of 60 (for males) or the age of 55 (for females) before the entry of this Law into force, with regard to salary income earned, and for self-employed persons, with regard to income of a self-employed person. If an employee has joined the funded pension scheme voluntarily, he/she shall inform all his/her employers about it. Making of a pension contribution on behalf and in favour of a participant who has joined the funded pension scheme voluntarily shall be mandatory with regard to each salary income earned by an employee or to income of a self-employed person.

4. The pension contributions of an employee who has joined the funded pension scheme shall be financed by the employer, the employee and the State in the amount and under the procedure defined by this Law, while the pension contributions of a self-employed person shall be financed by the self-employed person and the State in the amount and under the procedure defined by this Law.

5. Employees who have attained the age of 40 before the entry into force of this Law and who do not wish to be participants shall be entitled, in accordance with Article 22 of this Law, to leave the funded pension scheme.

6. The pension contributions of a participant shall be financed as follows:

a) an employer shall, except as provided for subparagraph d) of this paragraph, make a pension contribution at its own expense in favour of an employee, not later than 5 business days after the salary is paid, under the procedure defined by the Pension Agency, to the individual retirement account of the employee, in the amount of 2% of the taxable salary to be paid to him/her;

b) an employer shall, except as provided for subparagraph d) of this paragraph, make a pension contribution on behalf and at the expense of an employee, not later than 5 business days after the salary is paid, under the procedure defined by the Pension Agency, to an individual retirement account of the employee, in the amount of 2% of the taxable salary to be paid to him/her;

c) a self-employed person shall, not later than 5 business days after the income declaration is submitted under the procedure established by the legislation of Georgia, make a pension contribution under the  procedure defined by the Pension Agency, in the amount of 4 % of the income of the self-employed person;

d) an employee whose income tax payable from salary is not subject to withholding at source shall, not later than 5 business days after he/she receives the salary, make a pension contribution under the procedure defined by the Pension Agency in the amount of 4 % of the taxable salary, and the employer of that employee shall, when paying out salary, reimburse him/her for his/her pension contribution in the amount of 2 % of the taxable salary;

e) the State shall, make a pension contribution, in favour of a participant, to his/her individual retirement account:

e.a) within the first GEL 24 000 of the annual salary/annual income in the context of a respective calendar year – in the amount of 2% of the taxable salary of an employee and/or of the income of a self-employed person;

e.b) after the annual salary/annual income in the context of a respective calendar year exceeds the amount defined by subparagraph e.a) of this paragraph – from the said amount to GEL 60 000 inclusive, in the amount of 1 % of the taxable salary of an employee and/or of the income of a self-employed person;

f) the state shall not make a pension contribution on the taxable salary of an employee and/or the income of a self-employed person over GEL 60 000 in the context of a respective calendar year.

7. The pension contributions provided for by this Law shall be made, and the settlement with employers and employees/participants (including the transfer/payment/return of pensions/pension assets by the Pension Agency) shall be carried out in the national currency of Georgia (lari).

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

Law of Georgia No 4313 of 27 June 2024 – website, 12.7.2024

 

Chapter III – The Pension Agency

 

Article 4 – Establishment of the Pension Agency

1. The Pension Agency is an independent legal entity under public law established on the basis of this Law, which is responsible for the implementation, management and administration of the funded pension scheme.

2. The structure, powers, procedures for activity and other organisational issues of the Pension Agency shall be determined by the statute of the Pension Agency, which shall be approved by the Government of Georgia.

3. The restrictions and requirements defined by the Law of Georgia on Remuneration in Public Institutions shall not apply to the Pension Agency with regard to the remuneration of employees of the Pension Agency.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 5 – Supervision of the activities of the Pension Agency

1. The Supervisory Board shall supervise the activities of the Pension Agency, except for investment activities.

2. The National Bank shall regulate the investment activities of the Pension Agency in accordance with this Law and other legal acts.

 

Article 6 – Powers and obligations of the National Bank

1. The National Bank shall, as part of the prudential regulation of the investment activities of the Pension Agency and an asset management company (companies) defined by Article 29 of this Law, examine:

a) the compliance of an investment policy document prepared by the Pension Agency/an asset management company (companies) defined by Article 29 of this Law with the requirements established by this Law and by the National Bank in accordance with this Law;

b) the compliance of the structure, the procedures related to the management of the assets and the material-technical resources of the Pension Agency/an asset management company (companies) defined by Article 29 of this Law with the minimum requirements established by the National Bank, which are necessary for investment activities related to pension assets;

c) the compliance of the methodology for preparing an asset placement strategy, of investment decisions and a procedure for selecting by the Pension Agency of asset management companies provided for by Article 28 of this Law with the minimum requirements established by the National Bank. In addition, the National Bank shall not assess the investment decisions of the Pension Agency and of an asset management company (companies) defined by Article 29 of this Law;

d) the compliance of the accounting, settlement, administrative and information systems, and the means of communication with stakeholders, of the Pension Agency/an asset management company (companies) defined by Article 29 of this Law with the requirements established by this Law and the National Bank;

e) the compliance of the investment activities of the Pension Agency/an asset management company (companies) defined by Article 29 of this Law with the limits set by the investment policy document.

2. The National Bank shall be authorised to:

a) establish additional regulatory rules for a specialised depository providing services to the Pension Agency/asset management company (companies). These rules may relate to their equity, the experience of staff, hardware and software, maximum price of service or to any other issue that the National Bank considers necessary for the purposes of the enforcement of this Law;

b) request and receive from the Pension Agency, the asset management company, the specialised depository and a natural person and a legal person providing services to them, any information (including confidential) that is necessary for exercising the powers defined by this Law;

c) request and receive accounting documents from the Pension Agency, a specialised depository or an asset management company (companies) in the form and with a periodicity established by the National Bank;

d) inspect on site the Pension Agency, a specialised depository or an asset management company (companies) in accordance with this Law and other legislative and subordinate normative acts of Georgia;

e) establish, under this Law, additional rules and limits with regard to the ownership of an investment fund (investment funds) engaged in trading at a stock exchange in the investment portfolios of the Pension Agency and/or an asset management company (companies);

f) within the competence defined by this Law, when some significant violations are identified, give a binding instruction and/or a public recommendation to the Pension Agency and/or an asset management company  on the remedy of the existing deficiencies and to set a reasonable time limit for it;

g) in order to ensure the protection of interests of participants and the consistency of investment activities of the Pension Agency, on the basis of the relevant agreement concluded with the Pension Agency, exercise the functions of a specialised depository completely or partially, under the procedure established by itself;

h) if a participant enjoys the right granted to him/her by Article 27(3¹) of this Law, determine for the Investment Service of the Pension Agency and an asset management company (companies) defined by Article 29 of this Law such a mechanism of redeeming the portfolio units within which the limit for the total quantity or the maximum value of the portfolio units redeemed will be set for each period of their redemption, and such a mechanism for the deviation from the portfolio unit price calculated according to the net value of assets, which will balance the effect the sale of the new portfolio units or the redemption of the existing portfolio units has on the net value of assets.

3. The National Bank shall reflect in its annual report the compliance of the investment activities of the Pension Agency and an asset management company (companies) defined by Article 29 of this Law with this Law and the requirements of the National Bank.

4. The National Bank shall establish:

a) the methodology of calculating the value of pension assets;

b) the minimum credit rating of financial investment instruments denominated in permissible national currency and foreign currency provided for by Article 27 of this Law, in which pension assets may be invested in accordance with this Law and other legislative and subordinate normative acts of Georgia.

5. If the National Bank has information on the deterioration or possible deterioration of the financial or organisational condition of a specialised depository, it shall provide that information to the Pension Agency/an asset management company (companies) defined by Article 29 of this Law in writing, and information on the initiation of the process of revoking authorisation of a specialised depository selected by the Pension Agency/an asset management company (companies) provided for by Article 29 of this Law and of an asset management company defined by Article 28 of this Law.

6. The National Bank shall implement a temporary regime of special administration, the grounds for initiating which shall be the loss of more than 1 % of the invested pension assets earned as a result of the investment of the pension assets and the related activities, which is not caused by  a change in market conditions, by the materialisation of a credit risk or a counterparty risk, which was impossible to foresee and which is not a result of the culpability of the Agency, or by a systematic failure to comply with the significant instructions of the National Bank, or by a condition where the Pension Agency is temporarily unable to perform its functions related to investment activities and which envisages the carrying out by the National Bank of a temporary action related to investment activities for the purpose of ensuring their continuity. The procedure for implementing the temporary regime of special administration by the National Bank and the rules of its operation shall be defined by the National Bank.

7. The National Bank shall exercise other powers defined by this Law.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 7 – Administration of a funded pension scheme

1. The Pension Agency shall provide technical support for the participants’ joining the funded pension scheme through an electronic system, records participants, pension recipients and persons withdrawn from the funded pension scheme, carry out the administration of pension contributions in accordance with this Law, and shall create an individual retirement account for each participant.

2. The obligations related to making pension contributions shall be fulfilled through an electronic system under the procedure defined by the Pension Agency.

3. (Deleted – 1.11.2024, No 3601).

4. (Deleted – 1.11.2024, No 3601).

5. (Deleted – 1.11.2024, No 3601).

6. (Deleted – 1.11.2024, No 3601).

7. (Deleted – 1.11.2024, No 3601).

8. (Deleted – 1.11.2024, No 3601).

9. (Deleted – 1.11.2024, No 3601).

10. The Pension Agency shall manage and administer the electronic system, including through third persons.

11. For the purposes of the Law of Georgia on Rehabilitation and the Collective Satisfaction of Creditors' Claims and the Law of Georgian on Entrepreneurs, the Pension Agency shall not be creditor, with regard to the relations concerning the failure of an employer to make a pension contribution on behalf/in favour of a n employee. With regard to the pension contributions to be made on behalf/in favour of a participant, and based on this Law, in relation to his/her claims against the employers, the creditor shall be the participant concerned or a successor (successors) of the participant. The Pension Agency shall, in the case of an application by a rehabilitation manager and/or a bankruptcy commissioner under the Law of Georgia on Rehabilitation and the Collective Satisfaction of Creditors' Claims, and in the case of an application by a liquidator under the Law of Georgia on Entrepreneurs, provide the said person with the information available in the electronic system on the pension contributions made by the related employer, and the information received as a result of collating the information available in the databases of the Revenue Service.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 7¹ – Violation of the Obligation to Make a Pension Contribution

1. The Revenue Service shall provide information to the Pension Agency as needed and as frequently defined by the Pension Agency. The Pension Agency shall be authorised, when needed, to collate, as frequently as defined thereby, information available in the electronic system with information received from the Revenue Service. As a result of their collation, the Pension Agency shall identify a fact of the violation (the failure to fulfil and/or undue fulfilment) of the obligation to make a pension contribution and/or shall reveal a fact of an unneedful making of a pension contribution.

2. When a non-compliance is identified as a result of the collation of the information by the Pension Agency in accordance with paragraph 1 of this article, the Pension Agency shall be authorised to request from an employer, participant, pension recipient or a successor of a deceased participant any information regarding the pension contribution and/or the pension assets available on the individual pension account and/or their adjustment. In addition, the Pension Agency shall be authorised to request from any person to return to the Pension Agency any sum paid to him/her by mistake.

3. If the Pension Agency identifies a fact of the violation (the failure to fulfil and/or undue fulfilment) of the obligation to make a pension contribution as a result of the collation of the information by the Pension Agency in accordance with paragraph 1 of this article, the Pension Agency shall be authorised to:

a) impose a fine provided for by the Code of Administrative Offence of Georgia on, and/or apply a warning against an employer or an employee provided for by Article 3(6)(d) of this Law, who has violated the obligation to make a pension contribution under this Law, and an employer who, in the case defined by Article 3(6)(d) of this Law, has failed to reimburse an employee for his/her pension contribution in accordance with the same article;

b) request from a person concerned provided for by subparagraph a) of this paragraph to rectify the violation – to fulfil the obligation to make a pension contribution.

4. The sum of the fine provided for by paragraph 3(a) of this article shall be transferred to the state budget of Georgia, and the sum of the pension contribution provided for by paragraph 3(b) of this article shall be transferred to the individual pension account of a participant under the procedure defined by the Pension Agency.

5. The fine and the pension contribution provided for by this Law shall be referred to compulsory enforcement on the basis of an effective individual administrative act of the Pension Agency and a writ of execution issued in accordance with that act.

6. The Pension Agency shall, under this Law, develop and approve the rules and procedures for identifying a fact of violation of the obligation to make a pension contribution and a fact of revealing an unneedful making of a pension contribution, giving a written and/or electronic warning, imposing and enforcing a fine, returning an unneedful pension contribution made, and shall draw up the administrative offence report forms for exercising the said powers.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 8 – Rights and duties of the Pension Agency

1. (Deleted – 1.11.2023, No 3601).

2. The Pension Agency shall manage pension assets as a fiduciary, in the interests of participants, pension recipients and their successors.

3. (Deleted – 1.11.2023, No 3601).

4. The functions of the Pension Agency shall be:

a) the administration and management of the funded pension scheme, and insurance of its proper operation;

b) the investment of pension assets in accordance with this Law and the investment policy document, the reliable investment principles and the interests of the participants and their successors;

c) the analysis of the funded pension scheme, the formation of the view relating to its development and improvement, the preparation of the appropriate recommendations and their submission to the Supervisory Board;

d) the performance of other related activities provided for by the legislation of Georgia, including this Law;

e) the opening of accounts at the National Bank, commercial banks and/or other financial institutions for the accumulation of pension contributions, performance of investment activities and/or other purposes provided for by this Law and/or based on it, and the management of pension assets (including the monetary resources available at the nominal ownership accounts of the Pension Agency) in accordance with the interests of the participants and their successors;

f) the management and administration of the electronic system (including for the participants that have enjoyed the right granted by Article 29 of this Law);

g) the conclusion of agreements, including:

g.a) with an asset management company (companies), a specialized depositary and entities providing any services for carrying out investment activities or administrative activities, and/or supplying goods;

g.b) with a person (persons) rendering accounting, audit, legal or actuarial services and other services necessary for the Pension Agency;

g.c) on purchasing immovable property or movable property (including equipment or software) necessary for the activities of the Pension Agency;

h) the request and the reception of information regarding any transaction carried out on behalf of the Pension Agency for an asset management company (companies), a specialized depositary and persons rendering other services;

i) the staffing of the Pension Agency with employees and the establishment of competitive remuneration conditions;

j) the implementation of necessary measures relating to pension contributions, pension assets and payment of pensions;

k) the administration of the process of payment of the pensions and the value corresponding to the pension assets to the participants (including to those that have enjoyed the right granted by Article 29 of this Law), and in the case defined by this Law – to the successors of the participants;

l) the making of a decision on imposing on a person that has violated the obligation to make a pension contribution, the obligation to make the pension contribution under Article 7¹ of this Law and a warning/fine, in accordance with this Law and the procedure defined by the Pension Agency.

5. The Pension Agency shall draft and approve legal acts related to the procedures for paying pension contributions, the definition of the forms of submitting information concerning the pension contributions, the filing of an application for pensions and pension assets, fixing and payment of pensions and pension assets, and measures, rules and procedures necessary for the administration of the funded pension scheme, and those defined by this Law.

6. For the purpose of the fulfilment by the Pension Agency of the obligations defined by this Law and the effective administration of the funded pension scheme, any administrative body and/or person shall, within its/his/her competence, provide the Pension Agency with any information (including the personal data of a participant) necessary for carrying out its activities, in accordance with the legislation of Georgia.

7. (Deleted – 1.11.2023, No 3601).

8. (Deleted – 1.11.2023, No 3601).

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 9 – Director of the Pension Agency

1. The Supervisory Board shall select through a selective competition and shall appoint to office, and dismiss from office, the director of the Pension Agency, who administers  the Pension Agency activities under this Law. The director of the Pension Agency shall be appointed to office for a term of 5 years.

2. The procedure and conditions for holding a competition for the selection of a director of the Pension Agency shall be determined by this Law and the statute of the Pension Agency.

3. The procedure for appointing the acting director of the Pension Agency, in the case of the absence of the director of the Pension Agency or his/her inability to fulfil official duties, shall be determined by the statute of the Pension Agency.

4. The director of the Pension Agency must hold a higher education degree in the field of economics, finance or law, and must have at least 5 years of work experience in a managerial position. A person with previous conviction or a person who has been declared bankrupt in any state may not be appointed as director of the Pension Agency.

5. If a new director of the Pension Agency is not appointed by the time the term of office of the director of the Pension Agency expires, the current director of the Pension Agency shall continue to exercise his/her powers for no more than 90 calendar days after his/her term of office expires.

6. The director of the Pension Agency shall represent the Pension Agency in relations with third parties and shall exercise the powers granted to the Pension Agency by this Law and the statute of the Pension Agency.

7. The director of the Pension Agency shall:

a) appoint the employees of the Pension Agency to office and dismiss them from office under this Law;

b) for exercising the powers granted by this Law, issue individual legal acts and normative legal acts – orders;

c) considering the proposals defined by Article 13(1)(e) of this Law, prepare and approve, in agreement with the Supervisory Board, the annual budget, the staff list and the structure of the Pension Agency;

d) approve the regulations, rules and procedures, and other documents provided for by and based on the legislation of Georgia, that define in detail the goals, objectives, rights and duties of the Pension Agency and its structural units, and the processes and procedures as parts of their activities;

e) upon recommendation of the chief investment officer, approve the regulations, rules and procedures that define in detail the goals, objectives, rights and duties of the Investment Service of the Pension Agency, and the processes and procedures as parts of its activities;

f) approve the investment policy document prepared by the Investment Board and submitted to the director, without making any changes in it;

g) issue an individual legal act regarding the imposition on a person violating the obligation to make a pension contribution, the obligation to make the pension contribution and a fine, in accordance with this Law and under the procedure defined by the Pension Agency, and, based on an effective individual legal act, issue the writ of execution for compulsory enforcement of the decision made;

h) perform other functions provided for by the Statute of the Pension Agency and the legislation of Georgia.

8. (Deleted – 1.11.2023, No 3601).

9. (Deleted – 1.11.2023, No 3601).

10. (Deleted – 1.11.2023, No 3601).

11. Obligations provided for by the Law of Georgia on the Fight against Corruption shall apply to the director of the Pension Agency.

12. (Deleted – 1.11.2023, No 3601).

13. The director of the Pension Agency shall, according to the results of each year, submit a report of the activities of the Pension Agency to the Parliament of Georgia.

14. The director of the Agency shall be dismissed:

a) on the basis of his/her application that he/she shall submit to the Supervisory Board;

b) if his/her Georgian citizenship is terminated;

c) if a court's judgment of conviction against him/her in a criminal case enters into legal force;

d) if a court declares him/her missing or dead;

e) if he/she is recognised as a beneficiary of support by a court decision, unless otherwise determined by a court decision;

f) if he/she occupies a position incompatible with his/her status or carries out activities incompatible with his/her position;

g) if he/she violates the requirements established by this Law and/or improperly exercises the powers granted by law and improperly fulfils the obligations provided for by law;

h) if he/she dies.

Law of Georgia No 2208 of 30 November 2022 – website, 15.12.2022

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 9¹ – Chief Risk Officer and the Risk Control Department of the Pension Agency

1. The Supervisory Board shall select through a selective competition and shall appoint to office, and dismiss from office the chief risk officer.

2. The procedure and conditions for running a competition for the selection of the chief risk officer shall be defined by this Law and the statute of the Pension Agency.

3. A citizen of Georgia, who has higher education in the field of economics or finance and at least 5 years of work experience in a managerial position at a financial institution in the area of risk management may be appointed to the position of chief risk officer. A person with previous conviction or a person who has been declared bankrupt or unsuitable for working at a financial institution in any state may not be appointed as chief risk officer.

4. The structure of the Risk Control Department of the Pension Agency shall be defined by the chief risk officer in agreement with the Supervisory Board and shall submit it to the director of the Pension Agency for including it in the structure of the Pension Agency and approving it in agreement with the Supervisory Board.

5. The obligations provided for by the Law of Georgia on the Fight against Corruption shall apply to the chief risk officer. The chief risk officer shall also be restricted from accepting any present, credit (except for a credit taken out on ordinary commercial terms) or remuneration from an asset management company, a specialised depository or persons affiliated with them or another person rendering services to the Pension Agency. The chief risk officer shall file the official’s asset declaration in accordance with the legislation of Georgia.

6. The chief risk officer and/or a deputy chief risk officer may not, within 6 months after he/she is dismissed from office, provide professional services to an asset management company or to a specialised depository. If the chief risk officer and/or the deputy chief risk officer fails to find employment during this period on account of that restriction, he/she shall retain his/her current official salary.

7. In the absence of the chief risk officer or when he/she is unable to perform his/her duties, a deputy chief risk officer shall act for the chief risk officer.

8. Through the Risk Control Department of the Pension Agency, the Chief Risk Officer shall:

a) discharge functions linked to the control of non-investment risks, enjoy the rights related to these functions and perform duties related to the said functions in accordance with this Law and the procedures defined by the Statute of the Pension Agency;

b) carry out the aggregation of the risk of the funded pension scheme and perform functions related thereto, enjoy the rights related to these functions and perform duties related to the said functions in accordance with this Law and the risk aggregation procedures defined by the Statute of the Pension Agency;

c) discharge functions linked to the control of investment risks of the Pension Agency in accordance with this Law and the procedures defined by the Statute of the Pension Agency if the Investment Board does not exercise the power provided for by Article 13(1¹) of this Law.

9. For discharging the functions defined by paragraph 8 of this article, the chief risk officer shall be authorised to:

a) have access to any information available at the Pension Agency;

b) receive information from an asset management company, a specialised depository or a person rendering other services to the Pension Agency regarding the transactions concluded on behalf of the Pension Agency.

10. The chief risk officer shall not be authorised to suspend, impede and/or restrict the decisions of the Pension Agency, including of its Investment Service. Compliance with the recommendations submitted by the chief risk officer to the management bodies and/or structural units of the Pension Agency shall not be mandatory.

11. In discharging the investment risk control functions under this Law, the chief risk officer shall be accountable directly to the Investment Board, and directly to the Supervisory Board in discharging the non-investment risk control functions.

12. In discharging the functions related to the aggregation of the risk of the funded pension scheme, the chief risk officer shall be accountable to both the Supervisory Board and the Investment Board.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 10 – Supervisory Board

1. The Supervisory Board shall be composed of four members. The members of the Supervisory Board shall be:

a) the Minister of Finance of Georgia;

b) the Minister of Economy and Sustainable Development of Georgia;

c) the Minister of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs of Georgia;

d) the Chairperson of the Investment Board.

2. The Supervisory Board shall elect a chairperson of the Supervisory Board from among its members for a term of 2 years. The chairperson of the Supervisory Board shall be elected as a position.

3. The chairperson of the Investment Board shall not be a chairperson of the Supervisory Board.

4. When electing a chairperson of the Supervisory Board, voting for oneself by the members of the Supervisory Board shall be inadmissible.

5. (Deleted – 1.11.2023, No 3601).

6. The Supervisory Board shall:

a) be the body to agree the annual budget, the staff list and the structure of the Pension Agency with;

b) supervise the activities of the director and the Internal Audit Service of the Pension Agency and give them instructions;

c) appoint upon nomination by the Investment Board and dismiss a senior investment officer;

d) select the director and the chief risk officer of the Pension Agency through a selective competition, appoint them to and dismiss them from offices;

e) define and supervise the internal audit mechanism of the Pension Agency;

f) (Deleted – 1.11.2023, No 3601);

g) (Deleted – 1.11.2023, No 3601);

h) be the body to agree the normative acts of the director of the Pension Agency with, except for the investment policy document and the legal acts within the scope of activities of the Investment Board, the chief investment officer, the chief investment risk officer, the Investment Service of the Pension Agency and the Investment Risk Monitoring Service;

i) ensure an independent audit of the Pension Agency;

j) carry out other activities defined by this Law and the Statute of the Pension Agency;

k) be the body to agree the operation, compliance and reputational risk policy with, which is prepared by the Risks Control Department of the Pension Agency;

l) supervise the activities of the Risks Control Department of the Pension Agency;

m) be the body to agree the Charters of the Risks Control Department and the Internal Audit Service of the Pension Agency with.

7. The Supervisory Board may disagree with the staff list and the structure, and the budget for the investment activities of the Investment Service of the Pension Agency provided for under the staff list/annual budget/structure of the Pension Agency submitted by the director of the Pension Agency. The refusal must be substantiated.

8. Other rules and procedures related to the activities of the Supervisory Board shall be determined by the statute of the Pension Agency.

9. The members of the Supervisory Board shall not be remunerated for their activity in the Supervisory Board.

10. No one may, in any form, directly or indirectly, interfere with the activities of the director, the head of the Internal Audit Service, the chief risk officer of the Internal Audit Service and the Risks Control Department of the Pension Agency, and/or make a direct or indirect impact on their activities. This paragraph shall not restrict the functions of the Supervisory Board and the Investment Board defined by the legislation of Georgia, including by this Law.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 11 – Selection Commission

1. The Selection Commission shall select candidates for members of the Investment Board through transparent selection procedures and shall submit them to the Parliament of Georgia for approval.

2. The procedures for the selection of candidates for members of the Investment Board shall be defined and approved by the Selection Commission in accordance with this Law for each selection process.

3. The Selection Commission shall be composed of seven members. The members of the Selection Commission shall be: the Minister of Finance of Georgia, the Minister of Economy and Sustainable Development of Georgia, the Minister of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs of Georgia, three Members of the Parliament of Georgia, and one independent member.

4. An independent member of the Selection Commission shall be nominated by the National Bank. An independent member shall not be an employee of the National Bank or a member of the Board of the National Bank. An independent member shall have at least 10 years of professional experience in the financial sector, including at least 5 years of work experience in a managerial position in the field of finance, investment and/or risk management.

5. The three Members of the Parliament of Georgia shall be nominated as members of the Selection Commission by the Parliament of Georgia. The term of office of a member of the Selection Commission determined by this paragraph shall be terminated early upon the termination of his/her office as Member of the Parliament of Georgia.

6. The Selection Commission shall have a chairperson who shall be elected by the Selection Commission by a majority of the total number of its members. Members of the Selection Commission, except for an independent member, shall not be remunerated for their activity in the Selection Commission. The remuneration of the independent member of the Selection Commission shall be ensured by the National Bank. Other expenses related to the activities of the Selection Commission shall be financed from the annual budget of the Pension Agency.

7. The Selection Commission shall be duly constituted if at least 5 members of the Selection Commission attend its meeting. The Selection Commission shall make decisions by a majority of the total number of its members.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 12 – Composition of the Investment Board

1. For the purposes of defining a pension assets investment policy, an Investment Board shall be established within the Pension Agency, which shall be composed of five members.

2. The members of the Investment Board shall be elected by the Parliament of Georgia for a term of 5 years by a majority of the total number of its members. If a new member of the Investment Board is not elected by the time the term of office of the member of the Investment Board expires, the member of the Investment Board shall continue to exercise his/her powers until a new member of the Investment Board has been elected.

3. The Investment Board shall elect a chairperson of the Investment Board, for a term of its authority, from among the members of the Investment Board, by a majority of the total number of its members. In addition, the Investment Board shall be authorised to elect a deputy chairperson of the Investment Board by a majority of the total number of its members, for the term of office.

4. When electing a chairperson of the Investment Board and a deputy chairperson of the Investment Board, a member of the Investment Board may not vote for himself/herself.

5. A bona fide person, who has at least 10 years of professional experience in the financial sector, in the field of finance, investment, economics, risk management or actuarial services, may be elected as a member of the Investment Board.

6. For each vacant position of a member of the Investment Board, the Selection Commission shall announce a competition by publishing an appropriate announcement at both local and international levels (including in at least one international financial publication). For each vacant position of member of the Investment Board, the Selection Commission shall review at least two candidates, based on the selection criteria. The list of the selection criteria shall be prepared and submitted to the Selection Commission by the Investment Board. The Selection Commission shall select candidates for the membership of the Investment Board taking into account their professional skills and experience, by a majority of the total numbers of its members.

7. A member of the Investment Board shall not at the same time be an heir of any degree determined by the legislation of Georgia of a member of the Selection Commission, the director of the Pension Agency or a member of the Government of Georgia, or a person affiliated with a member of the Selection Commission, the director of the Pension Agency, a member of the Government of Georgia, or the head of or a person hired by an asset management company (companies), a specialised depository or any entity providing other services to the Pension Agency, or a beneficial owner holding equity in an asset management company (companies), a specialised depository or any entity providing other services to the Pension Agency, or a person affiliated with an asset management company (companies), a specialised depository or any entity providing other services to the Pension Agency.

8. A person with a criminal record or a person who has been declared bankrupt in any state or incompetent to manage a financial institution shall not be a member of the Investment Board.

9. A member of the Investment Board shall be dismissed in accordance with the procedure established by the Rules of Procedure of the Parliament of Georgia if:

a) a court's judgment of conviction against him/her enters into legal force;

b) a court has declared him/her missing or dead;

c) he/she is recognised as a beneficiary of support by a court decision in accordance with the legislation of Georgia or other state, unless otherwise determined by a court decision;

d) he/she has resigned or passed away;

e) he/she violated the requirements established by this Law and/or improperly exercised the powers granted by law and improperly fulfilled the obligations provided for by law;

f) he/she did not participate in the meetings of the Investment Board on three consecutive occasions, without good reason as provided for by the statute of the Pension Agency.

10. A member of the Investment Board shall be restricted from accepting any gift, credit (except for a credit taken out on ordinary commercial terms), or remuneration from an asset management company (companies), a specialised depository or a person affiliated with them, or another person providing services to the Pension Agency.

11. Membership of the Investment Board is a remunerative activity and shall be financed from the budget of the Pension Agency.

12. A member of the Investment Board may not, within his/her Investment Board membership period and within 6 months after its expiry, provide professional services to an asset management company that manages pension assets, or to a specialised depository that provides specialised depository service to the Pension Agency. If a member of the Investment Board fails to find employment during the said period due to the restriction set by this paragraph, he/she shall retain his/her current official salary.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 13 – Rights and duties of the Investment Board

1. The Investment Board shall:

a) draw up an investment policy document in accordance with this Law and shall submit it to the director of the Pension Agency for approval without the right to amend it;

b) if necessary, periodically revise an investment policy document, and update the investment policy document, including the asset placement strategy, in accordance with this Law;

c) carry out the monitoring and assessment of all activities related to the investment of pension assets, at least once a quarter;

d) carry out the assessment of the compliance of investment activities with the investment policy document, and, in the case of the detection of non-compliance, require the chief investment officer to submit for approval, within a reasonable time, a plan of measures to be taken in order to ensure the compliance of the investment portfolio, which must be executed;

e) for the purpose of preparing the annual budget of the Pension Agency, prepare proposals related to the annual expenses of the investment activities (including the number of employees and salary expenses of the Investment Service and the Investment Risk Monitoring Service of the Pension Agency, and other charges provided for under contractual relations with persons providing services), and submit them to the director of the Pension Agency to be included in the annual budget of the Pension Agency and approved in agreement with the Supervisory Board;

f) select a specialised depository and an asset management company defined by Article 28 of this Law;

g) (Deleted – 1.11.2023, No 3601);

h) define a structure for the Investment Service and the Investment Risk Monitoring Service of the Pension Agency, which ensures the availability of the appropriate internal audit mechanisms at the Investment Service, and the separation of the investment risk monitoring function from the Investment Service functionally and hierarchically;

i) be the body to agree the regulations, procedures and other documents with, that apply to the Investment Service of the Pension Agency and/or to the Investment Risk Monitoring Service of the Pension Agency and are related to its/their activities.

1¹. The Investment Board shall be authorised, for performing the investment risk control function, to set up a structural unit, which will be separated from the Investment Service of the Pension Agency functionally and hierarchically and will be directly and solely accountable to the Investment Board.

1². The Investment Board shall ensure the management and control of the investment risks. Consequently, the Investment Board shall supervise:

a) the risk management function based on the investment activity and/or related thereto, which is exercised by the chief investment officer through the Investment Service of the Pension Agency;

b) the investment risk control function. 

2. (Deleted – 1.11.2023, No 3601).

3. (Deleted – 1.11.2023, No 3601);

4. The Investment Board shall establish the procedure and criteria for selecting an asset management company defined by Article 28 of this Law, and the criteria and the rules (procedures) for establishing the amount of pension assets to be transferred for management to asset management companies and the time limits for the transfer.

5. (Deleted – 1.11.2023, No 3601).

6. The Investment Board shall, with due consideration of this Law, develop and submit to the National Bank for approval the rules (procedures) related to the activities of the Investment Board.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 14 – The Investment Service of the Pension Agency and the Chief Investment Officer

1. For the purpose of investing pension assets, the Investment Service shall be established within the Pension Agency, which shall be headed by the chief investment officer.

2. Employees of the Investment Service of the Pension Agency shall be appointed upon nomination by the chief investment officer and may be dismissed by the director of the Pension Agency.

3. The chief investment officer shall define the structure of the Investment Service of the Pension Agency in agreement with the Investment Board, and shall submit it to the director of the Pension Agency for its inclusion in the structure of the Pension Agency and its approval in agreement with the Supervisory Board.

4. The Pension Agency shall provide the Investment Service and the chief investment officer with all the resources necessary for exercising the powers and performing the duties defined by this Law and the statute of the Pension Agency, including with human and material and technical resources, which will be included in the annual budget of the Pension Agency in accordance with this Law.

5. For a transparent and competitive selection competition, the Investment Board shall, considering the requirements established thereby, select and submit a candidate for the chief investment officer to the Supervisory Board for appointment to the position. The Supervisory Board shall make the decision in favour of the candidate by a majority of the total number of its members. The rights and duties of the chief investment officer shall be defined by this Law and the statute of the Pension Agency.

6. A bona fide person, who has at least 10 years of professional experience in the financial sector, including at least 5 years of work experience in a managerial position in the field of finance, investments and/or risk management, may be appointed to a position of chief investment officer.

7. The chief investment officer shall participate in the preparation of the investment policy of pension assets in accordance with this Law.

8. The chief investment officer shall be responsible for the investment of pension assets in accordance with the investment policy document and the management of investment risks. The chief investment officer shall exercise the powers provided for by this Law through the Investment Service of the Pension Agency.

9. The chief investment officer shall administer the investment activities of the Pension Agency. The chief investment officer shall be authorised to make, formalise and execute investment decisions, to represent the Pension Agency for that purpose in the relations with third parties and to conclude agreements with them. Other rights and duties of the chief investment officer shall be defined by the statute of the Pension Agency.

10. Obligations provided for by the Law of Georgia on the Fight against Corruption shall apply to the chief investment officer. The chief investment officer shall also be restricted from accepting any gift, credit (except for a credit taken out on ordinary commercial terms) or remuneration from an asset management company, a specialised depository or persons affiliated with them, or another person providing services to the Pension Agency. The chief investment officer shall file an official's asset declaration in accordance with the legislation of Georgia.

11. The chief investment officer and/or a deputy chief investment officer may not, within 6 months after dismissal from office, provide professional services to an asset management company that manages the pension assets, or to a specialised depository. If the chief investment officer and/or a deputy chief investment officer fails to find employment during the said period due to the restriction set by this paragraph, he/she shall retain his/her current official salary.

12. The chief investment officer may be dismissed from office by the Supervisory Board upon application by the Investment Board.

13. No one may, in any form, directly or indirectly, interfere with the activities of the Investment Service of the Pension Agency and the chief investment officer, and/or make a direct or indirect impact on their activities. This paragraph shall not restrict the functions of the National Bank and the Investment Board defined by the legislation of Georgia.

Law of Georgia No 2208 of 30 November 2022 – website, 15.12.2022

Law of Georgia No 2286 of 1 December 2022 – website, 15.12.2022

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 15 – Fiduciary

1. For the purposes of this Law, the fiduciaries shall be:

a) members of the Investment Board;

b) the chief investment officer, and a deputy chief investment officer, only when acting as the chief investment officer;

c) a specialised depository and persons he/she employs, who have discretionary power with respect to the pension assets;

d) an asset management company (companies) provided for by Articles 28 and 29 of this Law and persons it (they) employ, who have discretionary power with respect to the pension assets;

e) a person responsible before the participants with respect to the pension assets, who provides advice to the Pension Agency/an asset management company defined by Article 29 of this Law on the basis of the related agreement.

2. For the purposes of paragraph 1(c) and (d) of this article, an employee of a specialised depository/an asset management company, who is authorised to directly make a decision with regard to the service in question and/or within that service.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 15¹ – The Chief Investment Risk Officer and the Investment Risk Monitoring Service of the Pension Agency

1. The Investment Board shall, through a transparent and competitive selection competition, select a candidate for chief investment risk officer and submit it to the director of the Pension Agency for appointment to the position.

2. The chief investment risk officer shall be directly and solely accountable to the Investment Board.

3. A citizen of Georgia, who has higher education in the field of economics or finance and at least 5 years of work experience at a financial institution in the area of risk management may be appointed to the position of chief investment risk officer. A person with previous conviction or a person who has been declared bankrupt or unsuitable for working at a financial institution in any state may not be appointed as chief investment risk officer.

4. The chief investment risk officer shall exercise the following through the Investment Risk Monitoring Service:

a) control of the investment risk defined by Article 2(z7⁵.a) of this Law;

[b) control of the investment risk defined by Article 2(z7 ⁵ .b) of this Law; (Shall become effective from 1 September 2024)]

c) other rights and duties defined by this Law and the statute of the Pension Agency.

5. The chief investment risk officer shall, with the agreement of the Investment Board, prepare the policy documents relating to the investment risk control and submit them to the director of the Pension Agency for approval.

6. The chief investment risk officer shall be authorised to have access to any information available at the Pension Agency, which is necessary for him/her to carry out functions relating to the investment risk monitoring.

7. The structure of the Investment Risk Monitoring Service of the Pension Agency shall be defined by the chief investment risk officer in agreement with the Investment Board and he/she shall submit it to the director of the Pension Agency for its inclusion in the structure of the Pension Agency and for its approval.

8. An employee of the Investment Risk Monitoring Service of the Pension Agency shall be appointed to office and dismissed from office by the director of the Pension Agency, upon recommendation of the chief investment risk officer.

9. The chief investment risk officer shall receive information from an asset management company provided for by Article 28 of this Law, a specialised depository and persons rendering other services regarding a transaction carried out on behalf of the Pension Agency, which is necessary for the chief investment risk officer to exercise functions relating to the investment risk monitoring.

10. If the chief investment risk officer is absent or he/she is unable to perform his/her duties, a deputy chief investment risk officer shall act as the chief investment risk officer.

11. The obligations provided for by the Law of Georgia on the Fight against Corruption shall apply the chief investment risk officer. The chief investment risk officer shall also be restricted from accepting any present, credit (except for a credit taken out on ordinary commercial terms) or remuneration from an asset management company, a specialised depository or persons affiliated with them or another person rendering services to the Pension Agency. The chief investment risk officer shall file the official’s asset declaration in accordance with the legislation of Georgia.

12. The chief investment risk officer may not, within 6 months after he/she is dismissed from office, provide professional services to an asset management company that manages the pension assets, or to a specialised depository. If the chief investment risk officer fails to find employment during this period on account of the restriction set by this paragraph, he/she shall retain his/her current official salary.

13. No one may, in any form, directly or indirectly, interfere with the activities of the chief investment risk officer and the Investment Risk Monitoring Service of the Pension Agency, and/or make a direct or indirect impact on their activities. This paragraph shall not restrict the functions of the National Bank and the Investment Board defined by the legislation of Georgia.

14. The chief investment risk officer may be dismissed from office on the basis of an application by the Investment Board to the director of the Pension Agency.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 16 – Meetings of the Supervisory Board and procedure for holding them

1. A meeting of the Supervisory Board shall be held as appropriate, but no less than once a quarter. A meeting of the Supervisory Board may be held by using electronic communication means.

2. Meetings of the Supervisory Board shall be conducted by the chairperson of the Supervisory Board, and in his/her absence, by the acting chairperson of the Supervisory Board or another member of the Supervisory Board.

3. Each member of the Supervisory Board shall have one voting right and shall not transfer his/her own voting right to another person. The Supervisory Board shall be authorised to adopt decisions if no less than three members of the Supervisory Board are present at the meeting of the Supervisory Board. The Supervisory Board shall make a decision by a majority of votes of those present at the Supervisory Board meeting. In the case of equal votes, the vote of the chairperson of the Supervisory Board shall be decisive.

4. The Supervisory Board shall be authorised to invite an employee of the Pension Agency to a meeting of the Supervisory Board.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 17 – Meetings of the Investment Board and procedure for holding them

1. Meetings of the Investment Board shall be held as appropriate, but no less than once a quarter. Meetings of the Investment Board may be held by using electronic communication means.

2. A meeting of the Investment Board shall be conducted by the Chairperson of the Investment Board, and in his/her absence, it shall be conducted by a deputy chairperson of the Investment Board (if any) or another member of the Investment Board elected as the chairperson of the meeting.

3. Each member of the Investment Board shall have one vote and shall not transfer his/her own voting right to another person. The Investment Board shall be duly authorised to adopt decisions if no less than three members are present at a meeting of the Investment Board. The Investment Board shall make a decision by a majority of the total number of its members. In the case of equal votes, the vote of the chairperson of the Investment Board shall be decisive.

4. The director of the Pension Agency, the chief investment officer and the chief investment risk officer shall be authorised to attend the meetings of the Investment Board without a right to vote.

5. The Investment Board shall be authorised to invite any employee of the Pension Agency or any other person to a meeting of the Investment Board.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 18 – Sources of funding of the Pension Agency; annual budget of the Pension Agency

1. The source of financing of the Pension Agency activities shall be the pension assets of the participants in the form of an annual service fee for pension assets, which is expressed as a percentage of pension assets. The Pension Agency shall be authorised to determine the periodicity of withdrawal of the fee.

2. A draft annual budget of the Pension Agency shall include:

a) the budget of the investment activities, which includes the budget of the Investment Service of the Pension Agency, service commission fees to be paid to an asset management company defined by Article 28 of this Law and a specialised depository, and the expenses of the Investment Board;

b) the budget of the administrative activities, which includes the management and administration expenses of the Pension Agency.

3. The percentage of the annual service fee shall be specified in the annual budget of the Pension Agency both in total and separately for investment activities and for managerial and administrative activities.

4. The director of the Pension Agency shall, no later than 1 December of each budget year, submit a draft budget of the Pension Agency for the following year to the Supervisory Board for approval.

5. The Pension Agency may not, for financing the activities of the Pension Agency, pledge or encumber, transfer the right of ownership to a third person or otherwise alienate the sum received by the Pension Agency as an annual service fee for the pension assets from participants’ pension assets in order to meet or fulfil a claim against the Pension Agency. The said sum shall not be subject to enforcement and shall not be included in the bankruptcy assets of the Pension Agency.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 19 – Reporting and accountability by the Pension Agency

1. The Pension Agency shall be obliged to publish an annual report of activities carried out by the Pension Agency on the official website of the Pension Agency no later than 5 months from the end of the calendar year. The report shall include the following information:

a) an annual financial report in line with international standards, which has been audited by one of the four largest audit companies of the world and selected by the Parliament of Georgia. The selected audit company shall be able to continuously audit the annual financial reports only three times. The Law of Georgia on Public Procurement shall not apply to the purchases relating to the services of an audit firm for conducting an independent audit examination of the financial reports of the Pension Agency;

b) information on the total absolute earnings in the context of each investment portfolio defined in Article 27(3) of this Law, including according to classes of assets;

c) information on the value and the proportion of pension assets invested in accordance with investment portfolios defined in Article 27(4) of this Law, and targeted and factual distribution of the classes of assets;

d) information on the results of the activities of each asset management company, their targeted indicators and the rate of deviations from them – separately, for financial instruments denominated in national and in foreign currency;

e) report on all other charges, including on the commission fees for specialised depositories and the fees for other services and financial transactions in total;

f) other information defined by the statute of the Pension Agency and/or the National Bank.

2. The director of the Pension Agency shall:

a) no later than 3 months after the end of the first 6 months of a calendar year, submit to the Parliament of Georgia an overview of the activities carried out by the Pension Agency within the 6 months;

b) no later than 5 months after the end of a calendar year, submit to the Parliament of Georgia a report of the activities carried by the Pension Agency in the previous year.

3. (Deleted – 1.11.2023, No 3601).

4. (Deleted – 1.11.2023, No 3601).

5. The Pension Agency shall be authorised to publish other information (including unaudited financial reports) at intervals determined by the Pension Agency.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 20 – Internal audit

1. The Internal Audit Service shall be established within the Pension Agency, which shall be accountable only to the Supervisory Board. The head of the Internal Audit Service shall be appointed upon nomination by the Supervisory Board and may be dismissed by the director of the Pension Agency.

2. All records and documents shall be made available to the Internal Audit Service, including information on the activities of the employees of the Pension Agency and members of the Investment Board.

3. The structure, powers and procedure for the activity of the Internal Audit Service of the Pension Agency shall be defined by the statute of the Pension Agency and the charter of the Internal Audit Service.

4. (Deleted – 1.11.2023, No 3601).

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Chapter IV – Participation in the Funded Pension Scheme

 

Article 21 – Participation in the funded pension scheme

1. An employee, except for an employee who has attained the age of 60 (in the case of a male employee) or the age of 55 (in the case of a female employee) before the entry of this Law into force, shall become a participant immediately after the employer makes the first pension contribution after this article becomes effective, on the basis of Article 3(6) of this Law.

2. Employees shall have the right to refuse to participate in the funded pension scheme in accordance with this Law.

3. An employee, who has attained the age of 60 (in the case of a male employee) or the age of 55 (in the case of a female employee) before the entry of this Law into force, and a self-employed person, shall become a participant voluntarily, in accordance with this Law.

4. An employee, who has attained the age of 60 (in the case of a male employee) or the age of 55 (in the case of a female employee) before the entry of this Law into force, and a self-employed person, shall become a participant immediately after he/she makes the first pension contribution.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 22 – Refusal to participate in the funded pension scheme

1. Employees, who have attained the age of 40 by the entry into force of this Law and do not wish to be participants, shall be authorised to apply to the Pension Agency in writing and leave the funded pension scheme in accordance with the procedure determined by the Pension Agency, within 5 months after automatically joining the funded pension scheme under a mandatory procedure, but no earlier than 3 months after joining the scheme. Otherwise, the employee shall continue to be a participant.

2. Employers shall be prohibited from persuading or dissuading employees, or otherwise influencing them in relation to the refusal to participate in the funded pension scheme.

3. If an employee refuses to participate in the funded pension scheme in accordance with paragraph 1 of this article:

a) the contributions made by an employer on behalf of an employee and in favour of an employee to his/her individual retirement account and the investment income associated with these contributions, excluding respective charges, shall be taxed in accordance with the legislation of Georgia, and shall be returned to the employee under the procedure determined by the Pension Agency;

b) the contributions made by an employer in favour of an employee to the individual retirement account and the investment income associated with these contributions, excluding respective charges, shall be returned to the employer or his/her successor under the procedure determined by the Pension Agency;

c) the pension contributions made by the State in favour of an employee to his/her individual retirement account shall be transferred to the treasury account of the Pension Agency, and the investment income associated with these contributions, excluding respective charges, shall be transferred to the State Treasury Single Account under the procedure defined by the Pension Agency.

4. If an employee refuses to participate in the funded pension scheme under the procedure established by paragraph 1 of this article, he/she shall have the right to re-join the funded pension scheme at any time in accordance with this Law and the procedure defined by the Pension Agency. In such a case, he/she shall be considered as having joined the funded pension plan under a mandatory procedure. If an employee re-joins the funded pension scheme, he/she shall inform all of his/her employers about it.

5. After an employee, who has joined the funded pension scheme in accordance with paragraph 4 of this article, makes the first pension contribution on the basis of an application filed under the procedure defined by the Pension Agency, it shall result in the creation of an information record on him/her in the electronic system, which will confirm the employee’s joining the funded pension scheme and will establish the ground for activating his/her individual retirement account.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 23 – Continuity of participation in the funded pension scheme

1. An employed participant, whose receipt of the sum in the form of salary is temporarily suspended, shall temporarily suspend making pension contributions. He/she shall resume making pension contributions immediately after his/her receipt of the sum in the form of salary is resumed. If an employee stops making pension contributions due to the termination of labour/contractual relations, or maternity leave or new-born adoption leave, or temporary or long-term incapacity for work, or because he/she has no salary for any reason, the pension assets shall remain in his/her individual retirement account in accordance with this Law.

2. A self-employed participant, whose receipt of income of a self-employed person is temporarily suspended, shall temporarily suspend making pension contributions. The pension assets shall remain in his/her individual retirement account in accordance with this Law. The self-employed person shall resume making pension contributions immediately after his/her receipt of income of a self-employed person is resumed.

3. (Deleted – 1.11.2023, No 3601).

4. (Deleted – 1.11.2023, No 3601).

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Chapter V – Pension Assets and Investing Pension Assets

 

Article 24 – The right of a participant to pension assets

1. The pension assets, or portfolio units that are reflected in the individual retirement account of a participant shall be his/her property. The right of a participant to dispose of the said property shall arise only upon reaching retirement age or in other cases provided for by this Law.

2. The property rights of a participant/a pension recipient to pension assets/portfolio units may not be pledged or encumbered, transferred to a third person or otherwise alienated in order to meet or fulfil a claim against the participant, the Pension Agency, a special depository, an asset management company (companies) or any other person. The pension assets/portfolio units available in the individual retirement account of a participant/a pension recipient shall not be subject to enforcement and may not be included in the bankruptcy assets of the participant/pension recipient, the Pension Agency, a special depository or an asset management company (companies).

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 25 – Individual retirement accounts in the Pension Agency

1. The pension contributions and the portfolio units purchased by the pension contributions shall be reflected in the individual retirement account of a participant (including a participant who has enjoyed the right granted by Article 29 of this Law).

2. The Pension Agency shall create an individual retirement account for a participant upon his/her joining the funded pension scheme and shall provide him/her with remote electronic accessibility of information on the individual retirement account. Issues related to the creation of an individual retirement account, the methodology of calculating the value of a portfolio unit, the methodology of calculating the value of an individual retirement account, and other issues related to an individual retirement account shall be defined by the Pension Agency.

3. The value of an individual retirement account shall be calculated and the information thereon shall become accessible to the participant at least once a quarter.

4. The Pension Agency shall develop a methodology for calculating the value of pension assets and shall submit it to the National Bank for approval.

5. (Deleted – 1.11.2023, No 3601).

6. After a participant withdraws from the funded pension scheme, or he/she fully receives his/her pension and/or pension assets, the individual retirement account of the participant shall become inactive, but it shall not be cancelled though. The individual retirement account of a former participant/pension recipient shall remain accessible for him/her.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 26 – Specialised depository

1. The Investment Board/an asset management company provided for by Article 29 of this Law shall select a specialised depository on who it shall impose the obligation to exercise the functions defined by paragraph 6 of this article and other functions provided for by the legislation of Georgia,  and shall conclude a depository service agreement thereon with it.

2. The Investment Board/an asset management company provided for by Article 29 of this Law shall select a specialised depository through a competition (except for the case under Article 6(2)(g) of this Law). The conditions and procedures for conducting a competition (including the requirements for the preliminary selection of a specialised depository) shall be defined and approved by the Investment Board/the asset management company provided for by Article 29 of this Law. The legislation of Georgia on public procurement shall not apply to the said selection process.

[2. The Investment Board shall select a specialised depository through competition. The conditions and procedures for conducting a competition, including the requirements for the preliminary selection of a specialised depository, shall be determined and approved by the Investment Board. (Shall become effective from 1 January 2025)]

3. A specialised depository may provide services to more than one entity, but it shall register and store the pension assets of the Pension Agency and operations and records related thereto separately from its own assets and records and/or the assets and records of other entities.

4. A legal entity registered in Georgia providing specialised depository services to the Pension Agency/an asset management company (companies) provided for by Article 29 of this Law, must be licensed and authorised by the National Bank for storing pension assets. A legal entity registered outside Georgia providing specialised depository services to the Pension Agency/an asset management company (companies) provided for by Article 29 of this Law, must be licensed by a relevant regulator of another state, recognised by the National Bank, and authorised by the National Bank for storing pension assets. Such a specialised depository must be operative, insolvency proceedings must not be pending against it, and it must meet the requirements of the legislation of the state concerned.

5. A specialised depository must not act as an asset management company.

6. A specialised depository shall, considering the requirements of paragraph 13 of this article, perform the following functions:

a) receive and store securities that constitute the pension assets;

b) receive and store copies of transaction documents on the transfers and the payment of financial resources that constitute the pension assets;

c) make entries in the relevant accounts of the register of pension assets stored with the specialised depository;

d) provide the Pension Agency with all necessary information to assist the Pension Agency in fulfilling the obligations determined by this Law;

e) ensure the compliance of the documents on the acquisition and administration of the pension assets with the legislation of Georgia and other requirements established by the Pension Agency;

f) fulfil supervisory obligations with respect to the pension assets;

g) perform other functions defined by the National Bank.

7. A specialised depository agreement concluded between the specialised depository and the Pension Agency/an asset management company provided for by Article 29 of this Law must consider at least the following issues:

a) the obligations of the specialised depository;

b) the terms and form of the fulfilment of obligations by the specialised depository;

c) the amount of remuneration of the specialised depository and the procedure for calculating the remuneration;

d) other requirements established by the legislation of Georgia.

8. Where the related licence or authorisation/recognition of a specialised depository is revoked, or in the event of a substantial violation or the improper fulfilment of a specialised depository agreement, or the initiation of insolvency proceedings against a specialised depository, the Pension Agency/an asset management company provided for by Article 29 of this Law shall send a notification to the specialised depository on the termination of the specialised depository agreement and shall immediately notify the National Bank and the Investment Board thereof.

9. Each change of a specialised depository shall be carried out in such a manner as to ensure the consistent provision of specialised depository services to the Pension Agency and the asset management company (companies) provided for by Article 29 of this Law.

10. In the case of the termination of a specialised depository agreement, the specialised depository shall transfer the pension assets stored with it and the documents related to the fulfilment of the obligations by the specialised depository to a new specialised depository within the time limits determined by the agreement or additionally agreed between the parties.

11. The pension assets placed with a specialised depository in accordance with this article shall not be its property, they may not be utilised for discharging the liabilities of the specialised depository, and they shall not be part of its assets to which the bankruptcy procedures may apply.

12. (Deleted – 1.11.2023, No 3601).

13. If the service of a specialised depository cannot be otherwise obtained or requires unreasonable efforts or costs, the Investment Board or an asset management company provided for by Article 29 of this Law shall be authorised to make the decision to conclude an agreement with the National Bank on purchasing the specialised depository service. On the basis of the agreement, the National Bank may perform all functions of the specialised depository defined by paragraph 6 of this article or only certain part thereof. The legislation of Georgia on public procurement shall not apply to the conclusion of the agreement provided for by this paragraph.

Law of Georgia No 5860 of 19 March 2020 – website, 23.3.2020

Law of Georgia No 2551 of 9 February 2023 – website, 27.2.2023

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

Law of Georgia No 3728 of 16 November 2023 – website, 7.12.2023

 

Article 27 – Investing pension assets

1. Pension assets may be invested only in compliance with the requirements of this Law, in order to maximise real returns in an investment horizon (taking into account inflation), in the interests of participants and in accordance with good investment principles.

2. Good investment principles are:

a) the maximisation of real returns (taking into account inflation) over a long-term period, as a result of the investment of pension assets;

b) the diversification of investments;

c) the security of pension assets in the conditions of a long-term investment;

d) maintaining adequate liquidity.

3. Pension assets may be invested in the 3 following investment portfolios having the riskiness and expected profitability that are different from one another:

a) the conservative (low-risk) investment portfolio;

b) the balanced (average-risk) investment portfolio;

c) the dynamic (high-risk) investment portfolio.

3¹. A participant/a pension recipient shall have the right to decide on his/her own which investment portfolio best suits his/her tolerance to risk. A participant/a pension recipient shall, by way of an application filed under the procedure defined by the Pension Agency, state his/her decision as to which investment portfolio best suits him/her.

3². If a participant/a pension recipient enjoys the right granted by paragraph 3¹ of this article, the rules provided for by paragraphs 4 and 4¹ of this article shall not apply to him/her.

4. The pension assets shall be invested in compliance with the following principles until a participant/a pension recipient enjoys his/her right under paragraph 3¹ of this article:

a) the pension assets available/reflected on the individual pension account of the participant/the pension recipient before 1 January 2028 shall be invested in the conservative (low-risk) investment portfolio;

b) the pension contributions made to the individual pension account of the participant/the pension recipient after 1 January 2028, and the pension assets of a participant having joined the funded pension scheme after 1 January 2028, shall be invested in compliance with the following principles:

b.a) the pension assets of a participant under 40 years of age shall be invested in the dynamic (high-risk) investment portfolio;

b.b) the pension assets of a participant from 40 to 50 years of age shall be invested in the balanced (average-risk) investment portfolio;

c) the pension assets of a participant of 50 or more than 50 years of age shall be invested in the conservative (low-risk) investment portfolio.

4¹. The age of a participant provided for by paragraph 4 of this article shall be determined as follows: the age of a participant who joins the funded pension scheme before 1 January 2028 – calculated as of 1 January 2028, and the age of a participant who joins the funded pension scheme after 1 January 2028 – calculated as of the date of his/her joining. In addition, as the age of a participant changes, the pension assets available on his/her individual pension account shall be moved to the investment portfolio defined by paragraph 4(b.a-b.c) of this article for the respective age category. If a participant enjoys the right granted by Article 33 of this Law, his/her pension assets, without regard to the age of a participant, shall be invested in the conservative (low-risk) investment portfolio.

5. A participant/a pension recipient shall have the right to change, in accordance with this Law and the procedure defined by the Pension Agency, the investment portfolio he/she has chosen or the investment portfolio that has been automatically chosen under paragraphs 4 and 4¹ of this article, and which is managed by the Pension Agency.

5¹. The procedure for choosing and changing the investment portfolio by a participant/a pension recipient shall be defined by the Pension Agency. The said procedure shall determine, among other things, the frequency of changing the investment portfolio and the period for filing the related application to the Pension Agency by a participant/a pension recipient. The frequency of changing the investment portfolio must not be less than 12 months, except for the individual cases (if any) defined by a normative act of the Pension Agency.

5². The Pension Agency shall electronically notify/provide information to a participant two years before he/she attains the pension age regarding his/her investment portfolio, including information about the possibility of changing the investment portfolio after receiving the pension and the forms of taking the pension. The Pension Agency shall establish the rules and procedures for the payment/fixing of the pension/pension assets to/for the pension recipients, including the minimum requirements for the liquid assets in the context of each portfolio.

6. The Investment Board, and an asset management company (companies) where so provided for by Article 29 of this Law, shall draw up an investment policy document, in consideration of the principles defined by this article, according to which the pension assets will be invested.

7. For the purposes of the investment of pension assets, an investment policy document shall clearly specify at least the following issues in the context of each type of investment portfolio:

a) investment objectives;

b) an asset placement strategy and the maximum permissible limits of deviation from the asset placement strategy for each class of assets;

c) an overall risk profile and the matrix of tolerance to individual risks, with an indication of an investment horizon of its validity;

d) the procedure for selecting, monitoring, assessing and concluding/terminating an agreement with an asset management company defined by Article 28 of this Law, a specialised depository and an entity providing other services related to the investment activities. Investments in each investment portfolio shall be planned in such a way as to expect, by the end of an investment horizon, a positive real return on the investment (taking into account inflation) with high confidence.

8. Each investment portfolio must provide for a different investment horizon to be defined by the Investment Board, and where so provided for by Article 29 of this Law, it will be defined by an asset management company (company) in accordance with the requirements established by this Law. In addition:

a) the investment horizon of the conservative (low-risk) investment portfolio must be less than 5 years;

b) the investment horizon of the balanced (average-risk) investment portfolio must exceed the investment horizon of the conservative (low-risk) investment portfolio;

c) the investment horizon of the dynamic (high-risk) investment portfolio must exceed the investment horizon of the balanced (average-risk) investment portfolio.

8¹. The Pension Agency, or an asset management company provided for by Article 29 of this Law shall be authorised to create, according to each type of the investment portfolios defined by this article (conservative, balanced or dynamic), and offer to the participants several, different from one another, conservative (low-risk), balanced (average-risk) or dynamic (high-risk) investment portfolios.

9. The returns on investment made by means of each investment portfolio and the efficiency of investment policy shall be assessed taking into account the riskiness of the investment portfolio compiled based on the length of investment horizon and the investments made.

10. The Investment Board, and an asset management company where so provided for by Article 29 of this Law, shall define the procedure and the periodicity for revising an investment policy document. An investment policy document must be revised at least once a year.

11. The Investment Board, and an asset management company where so provided for by Article 29 of this Law, shall consider the necessity of amending an investment policy document for the purpose of responding to significant fluctuations in financial markets and the risks caused by them.

12. The types of investment portfolios provided for by paragraph 3 of this article and the permissible investment limits, in the context of broad classes of assets, shall be defined as follows:

a) the conservative (low-risk) investment portfolio:

a.a) the financial instruments provided for by paragraph 16(a-d¹) and paragraph 17(a-c¹) of this article, and the corporate debt securities provided for by paragraph 16(e) and paragraph 17(d) of this article that are placed through a public offer – up to 100%;

a.b) equity securities provided for by paragraph 16(f) and paragraph 17(e) of this article – up to 20%;

b) the balanced (average-risk) investment portfolio:

b.a) the financial instruments provided for by paragraph 16(a-d¹) and paragraph 17(a-c¹) of this article, and the corporate debt securities provided for by paragraph 16(e) and paragraph 17(d) of this article that are placed through a public offer – up to 80%;

b.b) equity securities provided for by paragraph 16(f) and paragraph 17(e) of this article – from 20% to 40%;

b.c) other types of assets provided for by paragraph 16 and paragraph 17 of this article (except for the investment fund or sub-fund units provided for by paragraph 13¹ of this article) – up to 15%;

c) the dynamic (high-risk) investment portfolio:

c.a) the financial instruments provided for by paragraph 16(a-d¹) and paragraph 17(a-c¹) of this article, and the corporate debt securities provided for by paragraph 16(e) and paragraph 17(d) of this article that are placed through a public offer – up to 60%;

c.b) equity securities provided for by paragraph 16(f) and paragraph 17(e) of this article – from 40% to 60%;

c.c) other types of assets provided for by paragraph 16 and paragraph 17 of this article (except for the investment fund or sub-fund units provided for by paragraph 13¹ of this article) – up to 20%.

13. The maximum limits of placement in financial investment instruments denominated in foreign currency, in the context of investment portfolios, shall be determined as follows;

a) a low-risk investment portfolio − 20%;

b) an average-risk investment portfolio − 40%;

c) a high-risk investment portfolio − 60%.

13¹. For the purposes of paragraphs 12 and 13 of this article, the owning of the investment fund provided for by paragraph 16(g) or paragraph 17(f) of this article or the sub-fund units thereof shall be considered as the owning of the assets included in a portfolio of the same investment fund/sub-fund in the proportional amount if not less than 95% of the related portfolio is comprised of the assets provided for by paragraph 16(a-d¹), (e) and (f) and paragraph 17(a-d) and (e) of this article. The additional requirements set by the National Bank under paragraph 19 of this article shall apply to the related assets included in a portfolio of the investment fund/sub-fund defined by this paragraph, unless otherwise provided for by a legal act of the National Bank.

14. The National Bank and the Investment Board shall be authorised to submit to the Supervisory Board recommendations, in order to prepare changes to this Law, regarding the changes of investment limits and restrictions provided for by this Law if these limits and restrictions prevent from efficiently placing the pension assets in the best interests of participants.

15. The Investment Board shall, for each asset management company defined by Article 28 of this Law (if any), approve a detailed investment guideline for each type of investment portfolio. It must include not less than the targeted indicators of return (threshold), the limited indicator of deviation of risks to the threshold with respect to the targeted indicators, permissible and prohibited investments, credit risks, the investment horizon and the rating thresholds, in accordance with the investment policy document and this Law.

16. Pension assets may be invested in the following financial investment instruments denominated in foreign currency:

a) financial resources, bank deposits and deposit certificates;

b) government securities;

c) debt securities issued by the international financial institutions;

d) securities issued by the State, and the securities issued by a municipality or a state agency, provided that they are properly secured by the  state concerned;

d¹) mortgage-backed securities issued by the commercial banks licensed by the state bank regulator;

d²) co-participation in a loan co-financed by the international financial institutions;

e) corporate debt securities (except for the securities provided for by sub-paragraph d¹ of this paragraph) that have been registered by a relevant regulator and placed through a public or private offer;

f) shares of enterprises or global depository receipts, which are registered by a relevant regulator of the capital market of the state and are placed through a public offer, and trade in which is carried out on a stock exchange, provided that they are continuously supervised by a relevant regulator;

g) units of the investment fund licensed/authorised/registered by a relevant state regulator and/or subject to the supervision of a relevant state regulator (including an investment fund engaged in trading at a stock exchange, a private capital investment fund, a venture capital investment fund or a real estate investment fund);

h) other financial instruments and/or non-financial assets that may be allowed by the National Bank for investment.

17. Pension assets may be invested only in the following financial investment instruments denominated in national currency:

a) financial resources, bank deposits and deposit certificates;

b) government securities, securities issued by a municipality;

c) debt securities issued by the international financial institutions;

c¹) mortgage-backed securities issued by the commercial banks licensed by the National Bank;

d) corporate debt securities (except for the securities provided for by sub-paragraph c¹ of this paragraph) that have been registered by a relevant regulator in Georgia and placed through a public or private offer;

d¹) co-participation in a loan co-financed by the international financial institutions;

e) shares of enterprises, which are placed through a public offer in the list of stock exchanges licensed in Georgia or other state and the continuous supervision of which is carried out by a relevant regulator;

f) units of an investment fund authorised/registered by the National Bank (including a private capital investment fund, a venture capital investment fund or a real estate investment fund);

g) other financial instruments and/or non-financial instruments that may be allowed by the National Bank for investment.

18. (Deleted – 1.11.2023, No 3601).

19. The National Bank shall be authorised to establish additional requirements (including the minimum permissible credit rating) for any type of a financial investment instrument and/or issuer provided for by this article.

20. Pension assets shall not be invested:

a) in assets, the alienation of which is not permitted by law;

b) in options, other agreements related to futures and forward transactions and securities and financial assets, except for derivatives to be used for a hedging strategy, which serve for the reduction of risks, but at the same time, do not increase open positions. The National Bank shall be authorised to set additional requirements for the derivatives to be used for the hedging strategy provided for by this sub-paragraph;

c) in immovable property or tangible assets;

d) in any property of an asset management company, which manages the pension assets, of a member of the Supervisory Board , a member of the Investment Board or a person affiliated therewith;

e) in the securities issued by an asset management company, which manages the pension assets, or a person affiliated therewith;

e.b) a specialised depository providing services to the Pension Agency and/or to an asset management company, or a person affiliated with a specialised depository;

f) in other financial instruments and/or non-financial instruments determined by the National Bank.

21. More than 5% of the pension assets may not be invested in the financial investment instruments issued by one issuer. The National Bank shall be authorised to establish a rule different from the one defined by this paragraph in relation to the investment fund engaged in trading at a stock exchange and an issuer of such an investment fund.

22. The following shall be inadmissible, in the context of the pension assets that are managed by the Pension Agency/an asset management company (companies) provided for by Article 29 of this Law:

a) owning of totally more than 20% of the financial investment instruments in circulation of one issuer;

b) more than 20% of co-participation within transactions of the international financial institutions provided for by paragraph 16(d²) and paragraph 17(d¹) of this article.

22¹. When making an investment, any investment decision must comply with the limits/requirements defined by this article. If an investment portfolio exceeds the limits/requirements defined by this article and that incompliance is not caused by a new investment decision, the Pension Agency/an asset management company provided for by Article 29 of this Law shall ensure the compliance of the investment portfolio with the requirements defined by this Law within 6 months.

22². When calculating the limits defined by this article only open (non-hedged) positions shall be considered.

22³. The limits defined by paragraph 21 of this article shall be calculated in the context of each of the investment portfolios that are managed by the Pension Agency/an asset management company (companies) provided for by Article 29 of this Law.

23. The restrictions provided for by paragraphs 21 and 22 of this article shall not apply to the financial resources, bank deposits, deposit certificates and mortgage-backed bonds, and to the securities issued by the international financial institutions that are recognised by the National Bank or the Government of Georgia and have no less than AA- or its equivalent credit rating.

24. The pension assets may not be alienated to:

a) an asset management company which provides services to these pension assets;

b) a member of the Supervisory Board or a member of the Investment Board;

c) any person who is affiliated with the asset management company, a member of the Supervisory Board or a member of the Investment Board (if such affiliation can be identified).

24¹. The restrictions set by paragraphs 20(d) and 24 of this article and Article 35(3) shall not apply to a transaction concluded with the securities by the Pension Agency/an asset management company, the other party of which, on behalf/in favour of a beneficiary, is a financial institution licensed by the National Bank or by a regulator of another state. In addition, based on the habits settled of the securities market, the identity of that beneficiary is unknown to the Pension Agency/the asset management company.

25. An asset management company shall not issue a loan or a guarantee in favour of the person referred to in paragraph 24(d) of this article.

26. The Pension Agency/an asset management company shall exercise all the rights based on the financial investment instruments under its management in the interests of the participants and their heirs.

Law of Georgia No 5860 of 19 March 2020 – website, 23.3.2020

Law of Georgia No 7008 of 15 July 2020 – website, 28.7.2020

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 28 – Asset management company

1. The Investment Board shall be authorised to make a decision on the transfer of pension assets for management to an asset management company defined by this article, in compliance with the criteria and procedures established by the legislation of Georgia and thereby. In such case, the Pension Agency shall conclude a respective agreement with an asset management company.

2. An asset management company shall be obliged to manage pension assets in accordance with an asset management agreement and a detailed investment guideline approved by the Investment Board, which shall be prepared on the basis of an investment policy document.

3. An asset management company, which is registered in Georgia, must be a licensed legal entity authorised by the National Bank for the management of pension assets. The said asset management company must have continuously carried out activities for the past 3 years, and insolvency proceedings or licence/authorisation revocation procedures must not be pending against it.

4. For the purposes of this article, the National Bank shall be authorised to establish additional requirements for an asset management company licensed in Georgia.

5. An asset management company that is registered outside Georgia shall meet the following requirements:

a) it must be licensed by a relevant regulator of the state where it is registered, and it must be recognised by the National Bank;

b) it must have continuously carried out activities for the past 10 years, and insolvency proceedings or licence suspension or revocation procedures must not be pending against it;

c) it must not be a person affiliated with a member the Supervisory Board or a member of the Investment Board;

d) (Deleted – 1.11.2023, No 3601);

e) it shall have at least 3 years of experience of managing the accumulated assets of third persons (private and institutional).

6. The National Bank shall be entitled to establish additional requirements for an asset management company registered outside Georgia.

7. The Investment Board shall select one or more asset management companies through transparent selection procedures. The Investment Board shall establish the procedures and criteria for selecting asset management companies.

8. The pension assets placed with an asset management company under this article shall not be its property; they may not be used for fulfilling the obligations of the asset management company; they shall not be part of its assets to which insolvency procedures may apply.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 29 – Right to select an asset management company (companies)

1. An employee, who remains a participant by virtue of the right provided for by Article 22 of this Law, and a self-employed person who voluntarily joins a funded pension scheme, shall have the right to select an asset management company (companies) for managing the full amount or part of the pension assets and/or pension contributions available in his/her individual retirement account.

2. In addition to a participant provided for by paragraph 1 of this article, any other participant shall have the right to select an asset management company (companies) for managing only the part of the pension assets available in his/her individual retirement account that has been accumulated from the amount he/she received as a taxable annual salary that exceeds GEL 60 000.

3. If a participant fails to exercise the right granted under paragraphs 1 and 2 of this article, his/her pension assets shall be invested by the Pension Agency in accordance with the procedure established by this Law.

4. The National Bank shall establish the eligibility criteria for an asset management company, with regard to the asset management companies defined by this article.

5. The Pension Agency shall, in accordance with the criteria established by the National Bank, define the list of the asset management companies that will have an opportunity to manage the pension assets provided for by this article.

6. A participant shall choose an asset management company by means of remote electronic access or on the basis of an application developed by the Pension Agency, which he/she will complete and submit in writing.

7. The Pension Agency shall define the procedures for transferring the pension assets to an asset management company for management, the standard conditions of the related agreement, the maximum amount of the service fee and the periodicity of transferring pension assets.

8. The investment policy document and the provisions of this Law that concern the investment of pension assets shall apply to the asset management companies and the investments.

9. If a participant chooses an asset management company in accordance with this article, the asset management company must transfer the pension assets for storage to a specialised depository, which must not be a person affiliated therewith and must meet other requirements established by this Law.

 

Article 30 – (Deleted)

Law of Georgia No 2551 of 9 February 2023 – website, 27.2.2023

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 31 – Annual reports for participants

1. The Pension Agency shall, at least once a quarter, provide a participant with information on the total value of the pension assets available in his/her individual retirement account, which shall indicate the dates of making pension contributions and the return on investment. This information may be communicated to a participant through an electronic system. The procedure and the way of providing information to a participant shall be defined by the Pension Agency in accordance with the legislation of Georgia.

2. Upon the request of a participant, the Pension Agency shall be obliged to provide the participant with written information on the value of total pension assets available in his/her individual retirement account.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 32 – Fixing and payment of pensions at retirement age

1. A participant, after he/she reaches the retirement age, shall have the right to apply to the Pension Agency under the procedure defined by the Pension Agency, and receive the value corresponding to the total pension assets available in his/her individual retirement account, by means of a lump-sum payment or a programmed withdrawal.

2. A participant, after he/she reaches the retirement age, shall also have the right to apply to the Pension Agency under the procedure defined by the Pension Agency, and request that he/she purchase an insurance annuity product by means of the pension assets available in his/her individual retirement accounts in order to receive the pension.

3. The Pension Agency shall be entitled to determine another form of issuing to the participant, as a pension, the pension assets available in his/her individual retirement account and provide the participants with this form.

4. A participant shall be entitled to receive the total amount of the value of the pension assets from his/her individual retirement account, if he/she reached the retirement age no later than 5 years after the date of commencement of making pension contributions.

5. The pension Agency shall set the limit of the value of total pension assets, within which a participant shall have the right to receive a pension by means of a lump-sum payment.

6. A participant shall receive the total amount of money corresponding to the pension assets available in his/her individual retirement account after he/she applies to the Pension Agency under the procedure defined by the Pension Agency, and the Pension Agency makes the decision provided  for by paragraph 15 of this article.

7. The director of the Pension Agency, in agreement with the Supervisory Board shall, on the basis of the statistical data on life expectancy, approve the procedures and conditions for defining the periodicity of programmed withdrawals for the purpose of paying the pension assets to the participants that are not entitled to withdraw pension assets in accordance with paragraphs 4 and 5 of this article.

8. In order to calculate the amount of money to be paid through programmed withdrawal, the value of the total pension assets available in the individual retirement account of a participant at the time of retirement shall be divided by the remaining life expectancy of the participant, which shall be based on the data of the Legal Entity under Public Law called the National Statistics Office of Georgia on the age distribution and life expectancy of the population.

9. The amount of money to be paid through programmed withdrawal shall be calculated annually, in the month when the age of the participant changes. The schedule of payments shall not be different on the grounds of the state of health, race, religious beliefs, gender, or nationality of a participant or any other discriminatory grounds.

10. The Pension Agency shall notify a participant of the approaching of his/her retirement age through an electronic system 6 months before the retirement age and shall ensure his/her access to the standard application form.

11. (Deleted – 1.11.2023, No 3601).

12. (Deleted – 1.11.2023, No 3601).

13. After reaching the retirement age, a participant shall have the right, but shall not be obliged though, to request, on account of reaching the retirement age, and receive the pension under the procedure defined by the Pension Agency. If the participant fails to exercise that right after reaching the retirement age, the employer and the State shall make pension contributions in his/her favour until the participant makes the request for the pension in accordance with this Law and the procedure defined by the Pension Agency.

14. A participant may not continue making pension contributions after he/she starts receiving pension.

15. The Pension Agency shall make the decision on fixing a pension not later than 30 calendar days from the date when a participant files an application to it for retiring on pension under the procedure defined by the Pension Agency, and it shall start paying out/paying a pension not later than 30 calendar days after making the decision on fixing the pension/pension assets. After the Pension Agency makes the decision on fixing the pension, a participant’s status shall change and he/she shall become a pension recipient.

16. (Deleted – 1.11.2023, No 3601).

17. (Deleted – 1.11.2023, No 3601).

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 33 – Fixing and payment of pension in the case of disability of a participant

1. A participant shall be entitled to receive a pension before reaching retirement age due to his/her disability, provided that he/she is granted an appropriate status in accordance with the legislation of Georgia. In this case, the participant shall receive a pension in one of the forms provided for by Article 32(1) and (2) of this Law.

2. The Pension Agency shall determine the forms and procedures on the basis of which a participant shall exercise the right granted under this article and request a pension before he/she reaches retirement age.

3. The Pension Agency shall make the decision on fixing a pension on the ground of disability and shall start paying out/paying the pension under the procedure and within the period defined by Article 32(15) of this Law.

4. After a participant withdraws from the funded pension scheme on account of the fixing a pension by means of a lump-sum payment on the ground of disability, he/she shall have the right to re-join the funded pension scheme at any time in accordance with this Law and the procedure defined by the Pension Agency. In this case, he/she shall be considered to have joined the funded pension scheme on a mandatory basis. In addition, the participant shall no longer have the right to request, under the procedure established by this Law, the fixing and payment of a pension on the ground of disability. If a participant re-joins the funded pension scheme, he/she shall notify all of his/her employers thereof.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 34 – Transfer of pension assets to the heir of a participant

1. If a participant dies, the amount corresponding to the pension assets available in his/her individual retirement account shall be transferred to his/her heir (heirs) in accordance with the procedures determined by this Law and other legislative and subordinate normative acts of Georgia.

2. Pension assets may be transferred to a heir of a participant by means of a lump-sum payment and/or by transferring them to the individual retirement account of the heir of a deceased participant, as per the choice of the heir.

3. The heir of a participant shall submit a claim to the Pension Agency in accordance with the rules (procedures) approved by the Pension Agency.

4. The Pension Agency shall, after it receives a claim from the heir of a deceased participant for transferring the pension assets to him/her and the documentation certifying the legitimacy of that claim, under the procedure defined by the Pension Agency, make the decision on transferring the pension assets to the heir of the deceased participant, within the period defined by Article 32(15) of this Law, and shall transfer to the heir the pension assets available on the individual pension account of the deceased participant in one of the manners provided for by paragraph 2 of this article, as per the choice of the heir.

5. (Deleted – 1.11.2023, No 3601).

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 34¹ – Receipt of the pension assets by a participant when permanently leaving Georgia

1. If the participant’s citizenship of Georgia has been terminated and/or he/she has lost his/her permanent residence permit in Georgia, he/she shall have the right to claim for receiving the value corresponding to the pension assets available on his/her individual pension account by means of a lump-sum payment. This claim shall be allowed if it is confirmed that the participant is no longer a citizen of Georgia and/or he/she no longer has the permanent residence permit in Georgia.

2. If a person, who has enjoyed the right provided for by paragraph 1 of this article, has obtained Georgian citizenship and/or a permanent residence permit in Georgia again, it shall be mandatory to make a pension contribution on behalf and in favour of this person in accordance with this Law. If a participant obtains Georgian citizenship and/or a permanent residence permit in Georgia again, he/she shall notify all of his/her employers thereof.

3. The Pension Agency shall make the decision on paying out the value corresponding to the pension assets available on the individual pension account of a participant on the ground of his/her permanently leaving Georgia, and shall transfer the value corresponding to the pension assets to the participant within the period defined Article 32(15) of this Law. The sum to be transferred to the participant on the ground of his/her permanently leaving Georgia shall be subject to taxation under the legislation of Georgia.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Chapter VI – Breach of Fiduciary Duty and its Consequences

 

Article 35 – Breach of fiduciary duty

1. A fiduciary shall manage pension assets only in the interests of participants and their heirs, with due consideration of the requirements established by this Law. Protecting other interests shall be a breach of fiduciary duty. A fiduciary, when performing his/her/its duties, shall be obliged to:

a) act in good faith;

b) act with the care that a reasonably prudent person would exercise in a similar position and under similar circumstances;

c) act with the belief that his/her/its actions are in the best interest of the owners of the pension assets.

2. If a fiduciary does not have the knowledge necessary to make a decision, or the capacity to conduct an expert examination, he/she shall seek an opinion on this matter from a specialist with appropriate qualifications in the relevant field.

3. A violation by a fiduciary of only the obligation defined by this article (including the use of the pension assets in his/her/its favour or in favour of persons affiliated with him/her/it, or the conclusion of a transaction related to the pension assets (except for a transaction concluded by the Pension Agency or the asset management company at a stock exchange within the investment activities with the use of the pension assets), the other party of which is a person affiliated with the fiduciary) shall be considered as a breach of fiduciary duty.

4. An action of a fiduciary performed in the process of carrying out investment activities in compliance with the requirements established by this article shall not be a breach of fiduciary duty, irrespective of its consequences.

5. Liability as provided for by the legislation of Georgia shall be imposed on a person for breaching fiduciary duty.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 36 – Consequences of a breach of fiduciary duty

1. The Pension Agency may request a fiduciary to compensate for damage caused by their breach of fiduciary duty.

2. The compensation for damage caused by a breach of fiduciary duty shall be regulated by the legislation of Georgia.

3. The funds recovered as a result of compensation for damage caused by a breach of fiduciary duty shall be transferred to the individual retirement account of the respective participant or his/her heir, in proportion to the damage caused by the breach of fiduciary duty.

 

Article 37 – Interference by the employer in the process of the employee’s joining the funded pension scheme and a violation by an employer of the obligation to make a pension contribution

1. Interference by the employer in the process of the employee’s joining the funded pension scheme shall be a violation of this Law.

2. A violation (non-fulfilment and/or improper fulfilment) by an employer of the obligation to pay a pension contribution, or a failure of an employee provided for by Article 3(6)(d) of this Law to make a pension contribution in accordance with this Law, or a failure of the employer to compensate an employee for the pension contribution in the case provided for by Article 3(6)(d) of this Law, shall be a violation of this Law and shall carry the imposition of administrative liability.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Chapter VII – Transitional and Final Provisions

 

Article 38 – Transitional provisions

1. By 15 August 2018, the Government of Georgia shall ensure the approval of the statute of the Legal Entity under Public Law called the Pension Agency.

2. By 15 September 2018, the Supervisory Board shall ensure the appointment of a director of the Legal Entity under Public Law called the Pension Agency in accordance with the procedure established by this Law.

3. By 1 December 2018, the National Bank shall ensure the adoption of the legal acts provided for by this Law.

4. By 1 December 2018, the Legal Entity under Public Law called the Pension Agency shall ensure the adoption of the legal acts provided for by this Law.

5. The Supervisory Board shall be deemed duly constituted consisting of three members before a chairperson of the Investment Board is elected.

6. The first chairperson of the Supervisory Board shall be elected by the Government of Georgia.

7. One hundred per cent of the budget of the Pension Agency for the first three years shall be financed from the State Budget of Georgia. The expenses of the Pension Agency for the following 10 years shall not exceed 0.5 % of the pension assets, and after this period elapses, 0.25%.

8. The Parliament of Georgia shall elect two members of the first composition of the Investment Board provided for by Article 12(1) of this Law for a period of 3 years.

9. Within 5 years of the entry into force of this Law, pension assets shall be invested only in a low-risk investment portfolio.

9¹. The Legal Entity under Public Law – the Pension Agency shall, before 1 September 2024, ensure the compliance of the balanced (average-risk) investment portfolio with Article 27(12)(b) of this Law, and the compliance of the dynamic (high-risk) investment portfolio with Article 27(12)(c) of this Law.

10. Within 5 years of the entry into force of this Law, the limit for the investment of pension assets (except for financial resources and bank deposits) in the securities issued by one issuer referred to in Article 27(21) shall be 15%.

11. The activities of the Selection Commission shall be financed from the State Budget of Georgia in the first year.

12. Within 9 months of the entry into force of this Law, the Ministry of Finance of Georgia shall submit to the Government of Georgia a package of legislative amendments related to the indexation of state pensions, to ensure the maintenance of the wage replacement rate.

13. The Government of Georgia shall determine a procedure defined in this Law for ensuring the fulfilment of an obligation provided for by the funded pension scheme, to be fulfilled in 2019 with respect to the funding contributions to be made in the scheme by the State, as well as the co-funding contributions by an employer in the case of persons employed in budgetary organisations.

14. The Pension Agency shall, before the entry of Article 7¹ of this Law into force, ensure the development and approval of the procedure provided for by Article 7¹(6) of this Law.

15. Persons (except for an employee provided for by Article 3(6)(d) of this Law and the employer of that employee), who have violated the obligation to make a pension contribution defined by this Law before the entry of Article 7¹ of this Law into force but will fully comply with it not later than 60 days after the entry of Article 7¹ of this Law into force, shall not be subject to fining under the same article.

Law of Georgia No 3601 of 1 November 2023 – website, 20.11.2023

 

Article 39 – Entry into force of this Law

1. This Law, except for Articles 7, 21 and 29, shall enter into force upon its promulgation.

2. Articles 7 and 21 of this Law shall enter into force on 1 January 2019.

3. Article 29 of this Law shall enter into force on 1 January 2021.

 

 

President of Georgia                                 Giorgi Margvelashvili

Kutaisi

21 July 2018

No 3303- რს