http://www.truthorfiction.com/rumors/totalization.htmSummary of the eRumor
The email says that a "totalization" agreement between the U.S. and Mexico would grant Social Security benefits to Mexicans, including some who are here illegally, even if they didn't work in the U.S. long enough to qualify for Social Security benefits.
The Truth
According to the Social Security Administration, the U.S. has similar totalization agreements with other countries including Germany, Switzerland, Belgium, Canada Norway, and the United Kingdom.
Critics are hopping mad about a totalization agreement with Mexico. They say it will cost upwards to one billion dollars to provide Social Security benefits to Mexicans who will qualify. They say that at a time when the Social Security system is such a focus of concern, it's not time to grant such benefits to such a large group of foreigners.
Supporters say totalization benefits large numbers of Americans too, not just foreigners in the U.S.. One of the problems, according to the Social Security Administration, is that Americans, for example, who have worked in both the U.S. and a foreign country may end up being double taxed for retirement benefits. Additionally, there are some workers who have worked, for example, for a period of time in the United States then worked for a period of time in a foreign country, but failed to qualify for benefits in either country. The totalization agreements allow both U.S. and foreign workers to qualify for benefits based on the combined coverage of both countries.. According to the Washington Post, there is an estimated 37,000 Mexicans who worked legally in the United States and paid into Social Security but have not been able to collect their checks. One of the controversies of totalization is that it may include thousands of foreign workers who were in the U.S. illegally but did pay into Social Security. Immigration reform in 1996 cut their benefits.
Per the GAO:www.gao.gov/cgi-bin/getrpt?GAO-03-1035T
SSA has no written policies or procedures it follows when entering into totalization agreements, and the actions it took to assess the integrity and compatibility of Mexico’s social security system were limited and neither transparent nor well-documented. SSA followed the same procedures for the proposed Mexican agreement that it used in all prior agreements. SSA officials told GAO that they briefly toured Mexican facilities, observed how its automated systems functioned, and identified the type of data maintained on Mexican workers. However, SSA provided no information showing that it assessed the reliability of Mexican earnings data and the internal controls used to ensure the integrity of information that SSA will rely on to pay social security benefits. The proposed agreement will likely increase the number of unauthorized Mexican workers and family members eligible for social security benefits. Mexican workers who ordinarily could not receive social security retirement benefits because they lack the required 40 coverage credits for U.S. earnings could qualify for partial Social Security benefits with as few as 6 coverage credits. In addition, under the proposed agreement, more family Totalization agreements foster international commerce and protect benefits for persons who have worked in foreign countries. They eliminate dual social security taxes that multinational employers and their employees pay when they operate and reside in countries with parallel social security systems and fill gaps in benefit protection for persons who have worked in different countries. Because Mexicans are believed to represent a large share of the millions of unauthorized workers present in the United States, a totalization agreement with Mexico has raised concerns that they would become newly eligible for social security benefits. To shed light on the possible impacts, this testimony (1) describes the Social Security Administration’s (SSA) processes for developing the agreement with Mexico, (2) explains how the agreement might affect the payment of benefits to Mexican citizens, and (3) assesses the cost estimate for such an agreement. . Subcommittee I am pleased to be here today to discuss social security totalization agreements and specific issues related to a potential agreement between the United States and Mexico. Totalization agreements foster international commerce and protect benefits for persons who have worked in foreign countries in two ways. First, the agreements eliminate dual social security taxes that multinational employers and their employees must pay when they operate and reside in countries with parallel social security programs. Second, the agreements help to fill gaps in benefit protection for persons who have worked in different countries for portions of their careers. Since 1977, the United States has entered into 20 totalization agreements. Over the last year, the United States has been negotiating a totalization agreement with Mexico that has received considerable attention among the media and others regarding its potential impacts. Because Mexicans represent a large share of the millions of unauthorized workers present in the United States, a totalization agreement with Mexico has raised concerns that many such workers would become newly eligible for social security benefits at a time when long-term trust fund solvency is threatened. To shed light on the possible impacts of such an agreement, the Chairman of the House Judiciary Committee, and the Chairman of the House Ways and Means Social Security Subcommittee asked us to (1) describe the Social Security Administration’s (SSA) processes for developing the proposed agreement with Mexico, (2) explain how the agreement might affect the payment of social security benefits to Mexican citizens, and (3) assess SSA’s cost estimates for such an agreement. To address these objectives, we reviewed existing totalization agreements and the laws governing them; interviewed and obtained key documentation from SSA, Department of State, and Mexican Embassy personnel; and reviewed a range of demographic data and estimates addressing Mexican immigration. We also examined SSA’s actuarial cost estimates and supporting documentation for the proposed Mexican agreement. We conducted our work between January and August 2003, in accordance with generally accepted government auditing standards. My statement today is based on this completed work. Our final report with recommendations will be issued by September 30th. In summary, SSA has no written policies or procedures outlining the specific steps it follows when entering into totalization agreements
Printer-friendly format
Email this thread to a friend
Bookmark this thread
(1000+ posts)
Send PM |
Profile |
Ignore
