01/24/2019

Pension reform

The Batumi Oil Terminal conducts the extensive explanatory work with the employees in connection with the entry into force of the Law of Georgia on “Funded Pension”.

The Law on “Funded Pension” came into force in Georgia on January 1, 2019. The introduction of the Law provides the responsibility of both the employer and the employees themselves, in connection with which the Management of the Batumi Oil Terminal LLC has undertaken a number of preparatory activities for carrying out the large-scale explanatory work among the employees of the Company.

 In October-November 2018, the employees of the Personnel Management Department and the Accounting and Financial Reporting (IFRS) Department, as well as the lawyers of the Company, were sent to the Ernst & Young Audit and Consulting Company to receive the advice on issues related to the introduction of the funded pension system and conditions of participation of the employees in the system.

 Based on the obtained knowledge, as well as the instructions and other materials published on the official website of the Pension Agency of Georgia, the Integrated Management System and Standardization Department has developed the presentation to familiarize the employees of the Batumi Oil Terminal with the mechanism for participation in the Program, with the rules and procedures associated with the mandatory and voluntary participation in the Funded Pension System of Georgia.

 Within 9 working days, from 8 to 18 January 2019, in accordance with the established schedule, on the basis of the Training center of the Batumi Oil Terminal LLC, the employees of the Integrated Management System and Standardization Department and the Personnel Management Department carried out 18 presentations and explanations on the topical issues of innovations, in Russian and Georgian, for all the employees and the trade union of the Company. Over the entire period, 436 employees or almost 80% of the staff have taken part in these events.

 The interactive presentation form contained the detailed analysis of the New Law, as well as an active discussion with the audience on a specific example of the calculation mechanism. The conducted explanatory work allowed many employees to understand and decide on the readiness for the voluntary participation in the funded pension program of Georgia. As of January 23, 2019, the Personnel Management Department has received 14 statements from the employees regarding the voluntary entry into the program.

 The Batumi Oil Terminal LLC, as a socially responsible employer, cares of the future financial well-being of its employees and continues explanatory work with employees on all arising issues, and continues to receive the statements.