In a move to force the government to disclose details of the U.S.-Mexico Totalization Agreement, TREA Senior Citizens League (TSCL) recently filed a Freedom of Information Act (FOIA) lawsuit with the U.S. District Court. TSCL asked the Court to compel the Social Security Administration, and the U. S. State Department to release information on the cost of the U.S. - Mexico Social Security Totalization Agreement to the Social Security Trust Fund. The League has made repeated requests since 2003 to both agencies, but the agencies have not released all pertinent information.
"We are outraged that our government won’t tell us how much they plan to take out of the Social Security Trust Fund to pay for the Totalization Agreement with Mexico, and want to know what they’re hiding," says Ralph McCutchen, TSCL Chairman. "Our 1.2 million elderly members played by the rules, earned their benefits legally, and now count on them for the retirement. This Agreement puts their benefits at risk."
If you have not already signed our petition in support of this lawsuit, please do so now!
In September 2003, prior to the signing of the agreement with Mexico, Barbara Bovbjerg of the Government Accountability Office testified that "the cost of such an agreement is highly uncertain," saying that Social Security estimates failed to account for the "millions of current and former unauthorized workers and family members who would become eligible for benefits." The GAO charged that the Social Security Administration assumed that "the behavior of Mexican citizens would not change and did not recognize that an agreement would create an additional incentive for unauthorized workers to enter the United States."
The U.S. currently has 21 similar agreements in effect with other nations whose economies are similar to our own. Totalization agreements are agreements between two countries that eliminate dual Social Security taxation for persons who work abroad. The agreements allow such workers to combine work credits earned in both countries in order to meet minimum benefit qualification requirements. They also waive the residency requirements for receiving Social Security benefits.
Mexico’s retirement system, however, is radically different than ours. Only 40% of non-government workers participate, as opposed to 96% of America’s workers. In addition, the U.S. system is progressive, meaning lower-wage earners get back much more than they put in. In Mexico, workers get back only what they put in, plus accrued interest.
Under Totalization, Mexicans who worked here illegally would gain access to work-authorized Social Security numbers. Once they have a work-authorized number, those immigrants could lawfully apply for benefits once they have worked long enough to become eligible. In addition, under current law they are allowed to count earnings while illegal towards eligibility requirements. The Center for Immigration Studies has estimated that the agreement would compel the U.S. to pay out billions in Social Security benefits.
The agreement between the U.S. and Mexico was signed in June 2004, and is awaiting President Bush’s signature. Once President Bush approves the agreement, which is done without a congressional vote, either house would have 60 session days to disapprove the agreement by voting to reject it.
Source: "Proposed Totalization Agreement With Mexico Presents Unique Challenges," Government Accountability Office, September 2003, GAO-03-993. "Procedures For Issuing Numbers And Benefits To The Foreign-Born," statement of Barbara Bovbjerg, Government Accountability Office, March 2, 2006, GAO-06-253T. Statement of Patrick O’Carroll, Inspector General, Social Security Administration, Before the House Ways and Means Subcommittee on Social Security, March 2, 2006.
August 2006
