President’s Parliamentary Secretary explains why Zourabichvili declined to sign accumulated pension bill

Parliamentary Secretary of the President, Giorgi Mskhiladze, on Friday addressed the draft amendments to the law On Accumulated Pension during a briefing at the Orbelian Palace and explained the President’s decision not to sign the legislative amendment and to return the document to the Parliament without motivated notes.

Mskhiladze stressed the action did not constitute a veto, rather, the President utilised constitutional powers to refrain from signing the bill.The President’s administration criticised the amendments to the legislation, highlighting a primary concern.

“With these changes, members of the pension fund’s management board will be appointed by the Prime Minister, whereas under the current law, they will be elected by Parliament. It is unacceptable to remove this process from Parliament and concentrate such power in the hands of the Prime Minister. This change risks staffing the Council with individuals aligned with the ruling party, potentially leading to fund investments driven by political decisions rather than the best interests of the population,” said the Parliamentary Secretary of the President. 

“Pension reform was regarded as one of Georgia’s successful reforms. Therefore, it is unjustified to accept changes that damage the reform’s reputation and undermine public confidence. A robust pension system and its reliability are directly related to citizens’ well-being. We call on the Government of Georgia to consider the interests of more than one and a half million citizens.”

At the Bureau session on July 12, Chairman of Parliament Shalva Papuashvili announced that he would sign the document, which will be published in the legislative publication and come into force.

According to the amended law, pension savings owners will no longer have the right to entrust the management of their money to a private company.

The opposition criticised the change, and President Salome Zourabichvili went further, calling the amendments harmful.

“One of the country’s significant achievements is the creation of a pension fund, which could have been a source of pride for the ruling party. However, transferring the pension fund into government hands is a dangerous move,” Zourabichvili said on June 3.

The National Bank’s authority over the pension fund will increase. In the event of a significant violation, the NBG will have the power to dismiss a member of the fund’s directorate, including the CEO, Chief Investment Officer, Chief Risk Officer, and Head of Internal Audit.