From Russia, With Thoughts on Pensions
USC Davis School researchers discuss Social Security reform and other issues with foreign delegates.
USC Davis School alumnus George Shannon, research associate for the Partners in Care Foundation
Photo/Whitney Fountas
Photo/Whitney Fountas
The program brings small delegations of emerging leaders from Eurasia to the United States to observe American-style democracy in action and to help forge better understanding between nations.
Open World emphasizes programs that utilize a community-based approach to promote the health of citizens and provide effective social services.
To this end, graduate student researchers from the office of Kate Wilber, professor of gerontology and health service administration, offered presentations on Social Security reform, the Los Angeles County Elder Abuse Forensic Center and improved chronic care coordination.
Their goal in presenting research to members of the Russian delegation, three of which were heads of pension departments for their municipalities, was to underscore the principles of accountability, transparency and citizen involvement.
George Shannon, USC Davis School alumnus and research associate at the Partners in Care Foundation, introduced the guests to a brief overview of gerontology. He discussed implications of aging baby boomers and the need for reform of chronic and long-term care systems in the United States.
Shannon pointed out that life expectancy in the U.S. and most developed countries worldwide is extending into the high 70s and expressed the need for improved resources and infrastructure to support this aging population.
One notable exception to this development is Russia. After the fall of the Soviet Union and as recently as 2003, life expectancy was approximately 59 years for men and 72 years for women.
Demographic and health care experts said the main factors for this disparity are alcohol abuse, psychological stress caused by economic uncertainty, widespread smoking, poor personal safety practices, an unhealthy diet and a general lack of exercise.
According to visiting delegate Vasiliy Zhidkov, department director at the Pension Fund of the Russian Federation Administration of the city of Vologda, improving the national health care system is a priority of the Russian government.
Extending the average lifespan in Russia through improved health care, Zhidkov explained through an interpreter, will create problems for their state-run pension system in its current form. For example, by the age of 79, Russian men have depleted their accrued work earnings, and benefits are paid exclusively by the state. The same is true for Russian women after the age of 74.
Ph.D. student Zachary Gassoumis echoed Zhidkov’s concern with an analysis of needed reform in the U.S., highlighting the plight of the Latino population. A generally disadvantaged minority group, Latinos have nearly twice as many people living in poverty (22 percent) than the general population (12 percent), leaving them more dependent on Social Security.
“By 2050, Latinos are expected to make up 24 percent of the U.S. population,” Gassoumis said. “And they will account for over 50 percent of the U.S. minority population.”
He advised that changes will be necessary to address the projected long-term solvency of Social Security and that a large proportion of Latino retirees rely on its funds for at least 90 percent of their income.
One possible solution, Gassoumis suggested, would be to raise the amount of earnings subject to Social Security payroll tax from $97,000 to $120,000 and subject earnings over $120,000 to a 3 percent surtax.
Potential troubles of the American system surprised the Russians, who were more aware of the national pension programs of other European countries rather than that of the U.S.
A noteworthy difference between the two nations is that in many cases pension benefits are delivered in cash by the Russian postal service. When asked about the potential for corruption, Yelena Borodina, director of the National Pension Fund of the city of Nyagan, ensured it is minimal.
“It’s all tracked through the post office, which under Soviet rule carried out monetary transactions,” she said. “If people don’t get their money on the designated day, they know exactly who to call.”
Ph.D. student Adria Emberson discussed chronic care coordination and transition for older adults in the U.S. She presented a case study from Huntington Hospital in Pasadena that found Medicare insurance and “long-stays,” meaning hospital care extending more than six days, to be predictive for hospital readmission.
She also discovered an increased likelihood for hospital readmission in cardiac patients and people discharged to nursing homes. Emberson also revealed that respiratory patients have greater odds of “long-stays.”
In comparison, although Russia has universal health care with the option for private services, Lidiya Nasrtdinova, director of the benefits and compensations department for the municipal district administration of Leninsky in the city of Izhevsk, explained that the average hospital stay is approximately one month.
“When a health official tried to reduce the duration of hospital stays, the Russian people were up in arms,” she said. “This is a direct reflection of expected government services in post-communist Russia.”
Ph.D. student Jeanine Yonashiro, the final speaker of the day, described the services of the L.A. County Elder Abuse Forensic Center. Only the second program of its kind in the U.S., the center is a multidisciplinary team that provides comprehensive case examinations, documentation, consultation and prosecution of elder and dependent adult abuse cases.
The visitors were impressed with the center’s mission, admitting their country had no comparable initiatives to fight elder abuse.
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