EMBARGOED UNTIL THURSDAY, MAY 24, 2007 12:01 A.M. EASTERN

May 24, 2007 (Washington, DC) – The Social Security "Totalization Agreement" between the U.S. and Mexico, which has already been signed between the two nations and is awaiting the President's signature, would cost the United States an estimated $207 billion through 2040, according to a new study conducted by TREA Senior Citizens League.

The Totalization Agreement could make as many as 1.6 million Mexican workers and dependents eligible for U.S. Social Security benefits by 2040. Dependent family members could be eligible for benefits without having ever worked in – or even having visited – the United States.

The majority of Social Security benefits would go to Mexicans who performed illegal work in the United States. However, their dependents – possibly including a spouse, divorced spouse, widows or widowers, minor and disabled adult children, and dependent parents – are also eligible for benefits, and could increase the cost of totalized retiree benefits by as much as 50 percent.

In December 2006, TREA Senior Citizens League received the first known public copy of the U.S.-Mexico Totalization Agreement, 3-1/2 years after its initial request under the Freedom of Information Act. Neither the agreement nor any other documents released by the government contained a comprehensive cost estimate.

A Totalization Agreement is intended to eliminate dual taxation for persons who work outside their country of origin. Under the U.S.-Mexico agreement, a Mexican worker would be able to receive "totalized" Social Security benefits with as little as 18 months of work; American workers must work at least 10 years to qualify for benefits.

"We get so used to hearing billions of dollars thrown around in Washington that we forget how much $207 billion really is," said Shannon Benton, executive director of TREA Senior Citizens League. "To put this in context, this is more than half of what we've spent on the Iraqi war – and instead of giving these billions to illegal workers, we should be preserving it for Americans who were promised that it would be there for their retirement years."

There are at least three ways Mexican workers who perform illegal work in the U.S. could benefit from such an agreement:

1. "Non-work" Social Security Numbers: Between 1974 and 2003, the Social Security Administration issued more than seven million "non-work" Social Security numbers; an estimated 827,200 Mexican citizens used those numbers to work illegally and would be eligible for benefits under a Totalization Agreement by 2040.
2. Visa Overstayers: Non-citizens who were granted temporary work authorization but then overstayed their visas and continued to work in the United States could receive credit for their illegal work under a Totalization Agreement.
3. Illegal Aliens: Mexican workers who entered the United States illegally on or after January 1, 2004 and work for at least 18 months would receive totalized credits for their unlawful work if immigration amnesty passes and they gain work authorization. The study estimates that another 809,175 Mexicans would become entitled to totalized benefits under immigration amnesty.

"The Totalization Agreement with Mexico would destabilize Social Security," said Ralph McCutchen, Chairman of TREA Senior Citizens League. "Particularly because of the oncoming crush of baby boomers, it’s outrageous that we would deplete our limited resources by sending billions of dollars in Social Security checks each year to Mexico."

In 2003, the Social Security Administration (SSA) estimated the cost of the Totalization Agreement to be an average of $105 million over the first five years. However, they failed to include the cost of illegal earnings in their estimates. The Government Accountability Office (GAO) called their estimates "highly uncertain." Despite the GAO's criticisms, the SSA has failed to release a new estimate.

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 would be done without Congressional vote, either House of Congress would have 60 days to disapprove the agreement by voting to reject it. The President recently reaffirmed his support for comprehensive immigration reform.

This study uses a 34-year period to analyze the projected costs of the U.S.-Mexico Totalization Agreement because it was recently forecast that without major changes, the Trust Funds would be exhausted around 2040.

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With 1.2 million members, TREA Senior Citizens League is one of the nation's largest nonpartisan seniors groups. Its mission is to promote and assist members and supporters, to educate and alert senior citizens about their rights and freedoms as U.S. Citizens, and to protect and defend the benefits senior citizens have earned and paid for. Visit www.SeniorsLeague.org for more information.

PRESS CONTACT:   Brad Phillips 202-776-0640 (w); 202-446-4060 (c)  Brad@PhillipsMediaRelations.com

May 2007