- 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 above from the original posted article......
Has this thing been signed by the President? I can't find anything on google indicating signed or not signed..... The below article doesn't indicate the President must sign it like the posted artilce above does...
So is this in effect or still pending?
This is an archival or historical document and may not reflect current policies or procedures UNITED STATES/MEXICO TOTALIZATION AGREEMENT
June 2004 (Printer Friendly Version) (Aquí en Español)
Press Office Home Meet the Press Office Press Releases Congressional Testimonies SSA Reports SSA Research Totalization
Since the late 1970’s, the U.S. has established international social security agreements that coordinate the U.S. Social Security program with the comparable programs of other countries.
These international social security agreements are called “totalization agreements” and have two main purposes:
Eliminate dual social security taxation that occurs when a worker from one country works in another country and is required to pay social security taxes to both countries on the same earnings. As a result of existing totalization agreements, U.S. workers and employers currently are saving about $800 million annually in foreign taxes they do not have to pay.
Help fill gaps in benefit protection for workers who have divided their careers between the U.S. and another country, but who have not worked long enough in one or both countries to qualify for social security benefits. With totalization, workers are allowed to combine work credits from both countries to become eligible for benefits. The benefit amount paid is proportional to the amount of credits earned in the paying country.
An agreement with Mexico
An agreement with Mexico would save U.S. workers and their employers about $140 million in Mexican social security and health insurance taxes over the first 5 years of the agreement.
An agreement would also fill the gaps in benefit protection for U.S. workers who have worked in both countries, but not long enough in one or both countries to qualify for benefits.
Mexico is the second largest trading partner with the U.S. Agreements are already in effect with Canada, the largest trading partner with the U.S., and 19 other countries.
- With Mexico, the U.S. now has signed agreements with eight of its top ten trading partners. Many of these agreements have been in effect for nearly two decades. The two exceptions are China and Taiwan. By law, the U.S. could not enter into agreements with these two countries because they do not have generally applicable social security systems that pay periodic benefits or the actuarial equivalent.
Costs of an agreement with Mexico
Social Security actuaries estimate that a totalization agreement with Mexico would have a negligible long-range effect on the Trust Funds.
Costs to the U.S. Social Security system are estimated to average about $105 million per year over the first five years. These costs are for additional benefits to eligible U.S. and Mexican workers and reduced Social Security tax contributions under the dual taxation exemption.
To put this in perspective, in 2002, costs to the U.S. system for the existing agreement with Canada were about $197 million.
Effective date of an agreement with Mexico
In the United States, once the agreement is signed, the President will submit the agreement to Congress where it must sit in review for 60 session days. If Congress takes no action during this time, the agreement can move forward.
In Mexico, once the agreement is signed, the Mexican Senate must approve it.
Countries already having totalization agreements with the U.S.
The United States currently has Social Security agreements with Canada, Chile, South Korea, Australia and most of Western Europe.
Country Effective Date Country Effective Date Italy November 1, 1978 Portugal August 1, 1989 Germany December 1, 1979 Netherlands November 1, 1990 Switzerland November 1, 1980 Austria November 1, 1991 Belgium July 1, 1984 Finland November 1, 1992 Norway July 1, 1984 Ireland September 1, 1993 Canada August 1, 1984 Luxembourg November 1, 1993 United Kingdom January 1, 1985 Greece September 1, 1994 Sweden January 1, 1987 South Korea April 1, 2001 Spain April 1, 1988 Chile December 1, 2001 France July 1, 1988 Australia October 1, 2002 More detailed information about these totalization agreements can be found at http://www.socialsecurity.gov/international/.
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Other info on Totalization agreements.......