Public pension systems, if they exist at all beyond the civil service, are typically restricted to the larger enterprises in the formal sector. Thus, overall public pension coverage of the labor force is still fairly limited and replacement rates are low. Where such schemes exist, they are managed by public enterprises, and are financially not included in the central government budget.
Businesses must also be willing to pay up for talent, and that comes back to productivity—higher productivity pays for higher wages.15 Workers and the public sector also play critical roles in expanding our economy’s growth potential. Workers must be prepared to update their skills and retrain throughout their careers, with the help of both their employers and the public sector.