Would you take a cut in your Social Security so the government can pay benefits to immigrants that include work performed while illegal?  That would happen if "guest worker" immigration legislation is enacted and Congress allows a related Social Security totalization agreement with Mexico to take effect.  Judging from the volume of email you’ve been sending us, readers of this newsletter are outraged over both.

TSCL is fighting each proposal tooth and nail.  "The public has a right to know the full costs of ‘guest worker’ immigration legislation under debate in the Senate," says Ralph McCutchen, Chairman of TREA Senior Citizens League. "Social Security cuts are a significant hidden cost of guest worker immigration legislation and a pending Social Security totalization agreement with Mexico.  That cost would make itself apparent in just a few short years," he says.

Sign our Petition to Congress Protesting Illegal Alien Amnesty 'Guest Worker' Legislation and U.S. Social Security Totalization With Mexico

Last year, both the President and many Members of Congress said Social Security was in such dire financial condition that benefits would have to be cut to make the program solvent.  Nevertheless, Congress now may allow access to Social Security for potentially millions of new people under "guest worker" immigration reform legislation, and a related U.S. Social Security totalization agreement with Mexico.  Under both, immigrants who worked here for some time illegally would gain access to work-authorized Social Security numbers.  According to Social Security’s Inspector General, whose job it is to protect the program from fraud and abuse, once an immigrant has a work-authorized number, all work credits, whether earned legally or illegally, could be applied to their Social Security account. If so, immigrants and all their entitled dependents would become eligible for benefits sooner and potentially draw higher benefits, based on earnings while illegal.

The effect on Social Security would be severe, because the program pays more than just retirement benefits.  It also pays a maximum family benefit, and many immigrants tend to have large families.  A spouse, divorced spouse, children, even dependent parents who meet eligibility requirements may receive benefits based on a worker’s account.  For example, a worker who retires in 2006 with an initial monthly benefit of $1,700 would have a total maximum family benefit of $2,917.46.  Thus, a retiree and eligible family members could receive a monthly maximum of up to $2,917.46.

Regardless of whether Congress moves on "guest worker" immigration legislation, the President may still send the U.S.-Mexico Totalization Agreement to Congress.  The U.S. currently has 21 totalization agreements with other nations.  They allow workers who split their careers between the U.S. and another country to combine (totalize) work credits earned in both countries in order to meet the minimum benefit qualification requirements.

Unlike legislation, totalization agreements are treaties negotiated by two nations and don’t require Congressional approval to take effect.  Congress can however, stop a totalization agreement from taking effect by disapproving the agreement.  Once Congress receives the agreement from the President, lawmakers will have just 60 legislative days in which to disapprove the agreement.

TSCL endorses H. Res. 20 introduced by Representative J.D. Hayworth (AZ) and H. Con. Res. 50 introduced by Representative Virgil Goode (VA) disapproving the agreement.  TSCL is urging all readers to contact your Representative and ask him or her to stop the Totalization Agreement With Mexico by co-sponsoring these Resolutions.  To send an email to your Member of Congress, click here: http://www.tscl.org/action/guidetocontactingcongress.asp.

Sources:  Statement of Patrick P. O’Carrol, Inspector General, Social Security Administration, Before the House Subcommittee on Social Security, March 2, 2006.
2006 Social Security Explained, Avram L. Sacks, J.D., CCH Incorporated, Chicago, IL, page 377.  "Procedures for Issuing Numbers and Benefits to the Foreign Born," Statement of Barbara D. Bovbjerg, GAO, March 2, 2006, GAO-06-253T.

June 2006