GAO Report on U.S. /Mexico Social Security Agreement Due Soon

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GAO Report on U.S. /Mexico Social Security Agreement Due Soon

A General Accounting Office (GAO) report investigating a controversial agreement that could put millions of Mexican aliens onto the Social Security rolls is expected shortly. In our June issue, The Social Security & Medicare Advisor reported that a proposed U.S./Mexico Social Security totalization agreement was under negotiation and might be in place by as early as October.

The initial proposal appeared to include Mexican immigrants who worked here illegally using a false Social Security number. According to media reports, an internal Social Security Administration memo indicated that “Mexican nationals working illegally in the U.S. can currently become entitled to benefits if they have made payments to the Trust Fund that meet the vesting requirements. The totalization agreement would include this population of Mexican workers within the overall population of workers covered by this agreement.”

If that were to happen, one editorial estimated the drain on the Social Security Trust Fund could be as high as $345 billion over the next 20 years. Mexican immigrant advocates, however, argue that workers have paid into Social Security and should get their benefits. Maria Blanco, national senior counsel for the Mexican American Legal Defense and Education Fund, notes, “This is money these workers paid into the Social Security system. This is their money.”

White House spokeswoman Claire Buchan said the issue is being explored only at a “technical level” and that “the administration has not yet decided to move forward with formal negotiations.” Still, the House Ways and Means and Judiciary Committees stepped in and asked the GAO to investigate. The report will determine the status of negotiations and will study the potential effects that this agreement would have on:

workers,
beneficiaries,
service delivery by the Social Security Administration,
program finances,
immigration, and
payments to aliens who worked illegally.

For this story, Advisor editor Mary Johnson contacted the GAO and spoke with Barbara Bovbjerg, Director of Education, Workforce and Income Security Issues. Although the GAO cannot release findings to the public prior to making its scheduled report to Congress, Ms. Bovbjerg was able to confirm that as of June 13, 2003, no U.S./Mexico totalization agreement had gone to Congress for review. “Although Congress does not have to approve such agreements, they do have the authority to disapprove and thereby stop the agreement,” Ms. Bovbjerg said. “If Congress takes no action disapproving, the agreement could go into effect within 60 days.”

TSCL supports the GAO investigation and will continue to update information as soon as details are made public. For the most current news on this and other issues call TSCL’s Washington Weekly Hotline at 800-333-8725 and follow instructions or view the latest Legislative Update at http://www.tscl.org/weeklyupdates.asp .

Sources: “Siphoning Off Social Security,” Joel Mowbray, The Washington Times, January 9, 2003. “U.S. Social Security May Reach to Mexico,” Jonathan Weisman, The Washington Post, December 19, 2002.

September 2003