Without Relying on a Pension

Abstract

ABSTRACT This article looks at Russia’s prospects for drawing on the world’s experience with lifetime employment. By way of example, it analyzes lifetime employment in Japan and Europe. It notes that lifetime employment exists within a certain favorable environment involving, in particular, a large benefit upon retirement, wages that take into account whether workers have dependents, and an identical wage for all new employees. Given the changes that have taken place since the author first published on this topic (see EKO no. 3/2011), he concludes that at present, it would not be advisable to introduce full-fledged lifetime employment in Russia, but individual elements seem quite appropriate. In particular, it seems possible and even desirable to introduce lifetime employment for certain categories of instructors at Russia’s institutions of higher education. Among other things, this could reduce social tension over the increase in the retirement age, since lifetime employment would be attractive to some workers and companies. In the author’s opinion, the role of the Pension Fund of Russia must be changed. It must lose the authority to award, accrue, and pay pensions to civil servants.