Pension
Georgia has a defined contribution pension scheme that is mandatory for all employees. Contributions to the pension scheme are made by employees, employers, and the state. The legal retirement age in Georgia is 65 years. Women have the right to a pension from the age of 60.
Pension contributions are reflected in the participant's individual pension accounts. After reaching the retirement age, participants are entitled to receive the corresponding value of the total pension assets recorded in their individual pension account with a single payment or program withdrawal. They are also entitled to apply to the pension agency and request the purchase of an insurance annuity product with the pension assets recorded in their individual pension account in order to receive a pension. They receive the full amount of the value of pension assets from their individual pension account if they have reached retirement age no later than 5 years after the date of commencement of pension contributions.
Georgia also has a state-funded pension scheme for all citizens who have reached retirement age. The amount of pension depends on the annual state budget.
Dependents/Survivors Benefits
In Georgia, the amount in an individual's pension account is transferred to their survivors after they die. Transfer of pension assets may be made by lump sum payment or by transfer of pension assets to the individual pension account of the heir of the participant, according to the choice of the heir.
The state-funded social assistance scheme provides a social package to families in case of the death of their breadwinner. This package is given in the form of monetary and non-monetary monthly benefits.
Invalidity Benefits
It is mandatory for all employees in Georgia to be registered with the pension agency. It is responsible for paying disability benefits and pensions to its beneficiaries if they become disabled before reaching retirement age. After disability, participants are entitled to receive the corresponding value of the total pension assets recorded in their individual pension account with a single payment or request the purchase of an insurance annuity product with the pension assets recorded in their individual pension account to receive a pension.
Georgia also has a state-funded pension scheme for all disabled citizens. The pension amount depends on the annual state budget, increased in case of severe disability. A person in need of special care may be a recipient of non-monetary social assistance.
In case of work accidents, employers are obliged to fully compensate employees for the damage caused by the deterioration of the health condition and necessary treatment costs related to the performance of the work.