The latest attempt to expedite the insolvency of the fund has come in the form of a totalization agreement between the United States and Mexico which was entered into June 29, 2004; however, the President has not submitted it to Congress yet. Totalization agreements prevent workers—who come from one country but work in another — from paying Social Security taxes in both countries. While it may seem like an issue of fairness on the surface, when you look deeper it is completely unfair to hard-working Americans.

The proposed totalization agreement with Mexico is one-sided, and not in favor of American workers. It does not contain protections against fraud and has too many unanswered questions about its cost to the American taxpayer. Mexican workers who ordinarily would not receive benefits because they lack the required 10 years of legally-documented employment in the United States could qualify for partial Social Security benefits with as little as one and a half years of work history.

More family members living in Mexico would also qualify for U.S. Social Security benefits because the proposed agreement waives rules that prevent payments to non-citizens, such as children and spouses, living outside the United States. Because the Mexican government doesn't keep sufficient records on births, deaths and marriages, it would be nearly impossible to determine whether someone died so that the Social Security Administration could discontinue sending benefits.

The result of a U.S.-Mexico Totalization Agreement would severely impact our Social Security Trust Fund, increasing payments to Mexican workers to at least $650 million per year and could be incentive for continued illegal immigration.

I believe that Congress must fulfill its constitutional oversight of the Social Security system. That is why I have introduced the Social Security Totalization Agreement Reform Act, also known as the STAR Act (S. 43). Under current law, a totalization agreement becomes effective after it is signed by the President and submitted to Congress, unless either the House or Senate specifically rejects it. If no Congressional action is taken, the agreement becomes effective 60 days after submission to Congress.

My legislation is important to ensure that public debate, scrutiny, and analysis take place before vital Social Security dollars are sent overseas. It requires a resolution to be approved by both the House and Senate before an agreement could become effective. Congress should be required to review a totalization agreement and determine if it is in the best interest of the American taxpayer. In the case of the totalization agreement with Mexico, my bill could prevent illegal immigrants, many of whom have committed identity theft, from collecting Social Security benefits. It is a matter of fairness and fiscal responsibility, and we owe that to the American people.

Read the Social Security Totalization Agreement Reform Act of 2007

March 2007