Update on the U.S./Mexico Social Security Agreement Opposed by TSCL

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Update on the U.S./Mexico Social Security Agreement Opposed by TSCL

The U.S./Mexico Social Security Treaty is still moving ahead but opposition is growing, thanks to League supporters like you and our campaign against it. In part because of the public outcry over the treaty, some Members of Congress are beginning to agree with the League. In fact, the U.S. House of Representatives considered an amendment introduced by Representative J.D. Hayworth (AZ) to block payments of benefits under the proposed Social Security totalization agreement with Mexico.

The U.S. currently has such agreements with 20 other countries. The agreements allow persons who work outside their native country to ï¿½totalï¿½ the number of quarters of work in either country needed to collect Social Security. Employers and employees need to pay only one set of Social Security taxes, rather than two. Up until the proposed agreement with Mexico however, most of the agreements have been with countries with comparable economies and Social Security programs.

Those who supported blocking payments under the proposed agreement with Mexico argued that the Social Security Administration did not include in its estimates the more than 4 million Mexican workers who are in this country illegally and who earn credits toward Social Security based on illegal work. Several Representatives added that the agreement could lead to massive fraud problems. The amendment, while unsuccessful, garnered 178 votes (178-225) despite the fact that the issue had little discussion in Congress.

The proposed Totalization agreement must be reviewed by the State Department and White House, and then submitted to Congress. Congress will have 60 legislative days in which to review the agreement and take action to reject it.

A new study by the non-partisan Center for Immigration Studies (CIS), says that the proposed agreement with Mexico is ï¿½lopsidedï¿½ and the beneficial effects for U.S. workers are miniscule compared to those received by potentially millions of Mexicans. The study found that the agreement would:

Entice Mexicans to remain in the U.S. for the 10 years it takes to become eligible for benefits. In addition the U.S. system pays out far more to low-wage workers than what they contribute to the system. In contrast a U.S. worker would have to work 24 years to become eligible for benefits in Mexico and would only receive what was contributed plus interest.
Eventually compel the U.S. to pay out billions in retirement benefits to Mexicans for credits they acquired while using fraudulent Social Security numbers prior to acquiring legal status.
Lure even more Mexicans into the United States illegally.

The TSCL staff is actively working with Members of Congress to stop the treaty. We endorsed H. Res. 720, a resolution introduced by Representative ï¿½Macï¿½ Collins (GA) in the 108th Congress that would have rejected the Social Security agreement with Mexico. TSCL has contacted hundreds of thousands of seniors by mail and email, urging them to convince their Representatives in the House that a totalization treaty with Mexico would be unfair to all Americans and catastrophic for Social Security.

Sources: Transcript: debate on H.R. 5006 ï¿½ ï¿½to block payments of benefits under the proposed Social Security totalization agreement that was signed with Mexico,ï¿½ U.S. House of Representatives, September 9, 2004. ï¿½Social Security Totalization, Examining a Lopsided Agreement, ï¿½ September 28, 2004.

January 2005