“In case of incorrect declaration of pension contributions, submission of an annual corrective declaration becomes mandatory in Georgia.”

On February 2025, 13, an amendment to the Order No. 2019 of the Director of the Pension Agency, a legal entity under public law, dated July 30, 002, “On the Rules for Payment of Pension Contributions, Forms for Submission of Information, Administration of Overpaid Amounts, Accrual of Pension Contributions, Expenses, Excess Income, Losses, Other Income, Profits and Losses to an Individual Pension Account” was published and entered into force immediately upon publication.

According to the changes, several new features will be introduced in the Pension Agency’s electronic system, which will relate to the comparison with the Revenue Service database and the submission of the annual pension declaration.

A comparison functionality has been added to the Pension Agency’s electronic system, through which the employer/self-employed/the non-standard employee is given the opportunity to review the results of comparing the data in the electronic system with the information received from the Revenue Service. The comparison functionality also has a comment box where the employer/self-employed/a non-standard employee can provide a comment/explanation if they disagree with the comparison results provided in the comparison functionality.

In the event that the employer/self-employed/the non-standard employee agrees with the comparison results provided in the comparison functionality, in order to eliminate the fact of under- or over-implementation of pension contributions, he is given the opportunity to correct the identified differences in a lump sum for the year, based on the initiation and closing of the annual corrective declaration. In case the annual corrective declaration provides for the elimination of inadequate performance (full or partial failure to fulfill the obligation to make pension contributions), the existence of the corresponding balance sheet amount is necessary for its closure. In case the annual corrective declaration provides for the elimination of the fact of overpayment of pension contributions, within no more than 5 working days from the closing of the declaration:

– Employer/self-employed/the pension contribution made in excess by a non-standard employee and the benefits accrued thereon (if any) will be returned to him/her in the form of a balance amount;

– The amount of pension contributions made in excess by the state will be transferred to the treasury account, and the interest accrued on it (if any) will be transferred to the unified treasury account of the budget. The employer/non-standard employee/self-employed person is responsible for the accuracy of the annual corrective declaration, and such declaration may be subject to verification by the Agency during the monitoring process.

In the event that it is confirmed that an employer has mistakenly enrolled an employee in a funded pension scheme that is not covered by the Georgian Law on Funded Pensions, the Agency is authorized to revoke the status of such participant in the scheme without the employer/participant applying. In such a case, the Agency is obliged, no later than 5 working days after the status is revoked:

– Transfer the pension contribution made by the employer in favor, on behalf and at the expense of such a participant and the accrued benefits (if any) to the employer’s bank account recorded in the electronic system or to another bank account additionally submitted by the employer through the electronic system;

– Transfer the amount of pension contributions made by the state in favor of such a participant to the treasury account, and the accrued interest (if any) to the unified treasury account of the budget;

– Notify the employer and the participant through the electronic system about the cancellation of the status and the return of pension contributions and accrued benefits (if any) in accordance with this paragraph.