To respond to the super-aging society, it is inevitable for the government to review the employment conditions of national government workers. It is necessary to consider the issue prudently and in a multifaceted manner, while keeping in step with private companies.
The government has decided to gradually raise the retirement age of national civil servants from the current 60 in principle to 65. The government aims to submit a bill to revise the National Civil Service Law to the ordinary Diet session next year after mapping out a specific system.
The starting age to receive public pension benefits has been raised every three years, and will reach 65 in fiscal 2025. By extending the retirement age of national government employees, the government aims to ensure there is no period in which they are left without an income.
Both the public and private sectors must work together to make better use of elderly people.
However, there are a number of issues that need to be addressed before the retirement age of national civil servants can be raised.
The government plans to lower the salary level of government employees aged 60 or older in line with the rise in the retirement age.
In order to contain the increase in overall labor costs and to continue to employ elderly people, it is necessary for the government to drastically lower the salaries of workers. The government will be forced to review how age should factor into wages for employees, including those in their 50s.
In the case of private companies, about 80 percent use reemployment systems to bridge the period until the age of starting to receive pension benefits, while fewer than 20 percent have extended their mandatory retirement age. This is because it is easier to reduce salaries and implement reassignments and relocation.
Improve reemployment system
Increasing the retirement age of national government employees in a way that gets ahead of the private sector will not easily win public acceptance.
Another challenge is considering the way to hire new employees. The number of national civil servants is strictly controlled, and new hiring is carried out on the premise of filling vacancies created by retirements. If new hiring is narrowed down for a certain period of time, the age structure of the organization could become distorted.
It is feared that young and mid-career employees will have to bear heavier work burdens, which could lead to a decline in motivation.
The government will consider introducing a system in which employees retire from managerial posts when they reach a certain age. The system aims to curb labor costs and promote the rejuvenation of organizations.
In the new system, older workers will be expected to be involved in research studies or training younger people based on their expert knowledge after retiring from managerial posts. It remains to be seen whether each ministry and agency will be able to give appropriate treatment in line with the organizations' actual situations.
In 2011, the National Personnel Authority proposed that the retirement age of national civil servants be extended. However, the government did not accept the proposal, instead making it obligatory in 2013 to reemploy those who wished to continue working.
In fiscal 2017, about 12,600 officials were reemployed. About 60 percent of them work shorter hours, and in reality they are only assigned supplementary tasks.
Shouldn't the reemployment system be improved before increasing the retirement age?
It is also important for the government to make effective use of information technology to reduce wasteful operations and discuss efficient management of the organization as a whole.
(From The Yomiuri Shimbun, March 1, 2018)
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