U.S.-Mexico Pact Revealed: Billions to Non-citizens

Newsmax ^ | January 5, 2007 | Dave Eberhart

[Tolerance Sucks Rocks]

WASHINGTON -- As a result of lawsuits, the U.S. government released this week the actual U.S.-Mexico Social Security Totalization Agreement, an understanding signed between the Bush administration and the Mexican government in 2004 that would funnel billions of U.S. Social Security funds to Mexican citizens.

TREA Senior Citizens League, a Washington-based nonpartisan seniors group, announced this week that after Freedom of Information Act lawsuits it filed against the government, it had received the secret agreement document.

Brad Phillips, a spokesperson for TREA, told NewsMax that the language in the agreement "raises more questions than it answers — such as what is the cost and who is going to pay."

The Government Accountability Office (GAO) has already warned that as a result of this agreement, the number of unauthorized Mexican workers and family members eligible for social security benefits will likely increase.

The Dreaded Loophole

TREA and other watchdog groups were hopeful that the agreement would directly address, and perhaps even moot, the hot-button issue of illegal immigrants at some point claiming U.S. Social Security benefits.

"A law called the Social Security Protection Act of 2004 forbids illegal immigrants from claiming Social Security benefits — but a loophole exists," Phillips explained.

"If an immigrant gains what's called a valid ‘work-authorized' Social Security number at some point, then he or she could eventually file a claim for benefits. The government would use all earnings to calculate the retirement benefit — even earnings while working illegally," Phillips added.

The U.S. commissioner of Social Security signed the agreement with the director general of the Mexican Social Security Institute on June 29, 2004. TREA has fought to make it public for over three and a half years, according to a press release from the organization.

In the meantime, the agreement has been slowly making its way through mandated reviews by the State Department and the White House. Once the White House submits it to Congress, lawmakers will have 60 legislative days to review it.

Either chamber may vote to pass a Resolution of Disapproval of the agreement — or it will take effect automatically at the end of the 60-day period. Furthermore, the Mexican Senate must affirmatively approve the totalization agreement.

In general, Totalization Agreements are between the United States and other countries to coordinate their respective social security programs. For instance, such agreements typically work to eliminate the need to pay social security taxes in both countries — when companies in one country send workers to the other country. Also they are crafted to protect benefit eligibility for workers who split their working careers between the two countries.

According to TREA, if an illegal worker working in the United States today gets a "work authorized" Social Security number — through guest-worker immigration legislation, the Totalization Agreement, or perhaps just over time — that worker could eventually apply for Social Security benefits once the worker has met eligibility requirements.

Unfair Advantage

For example, say TREA officials, a worker who turns 62 after 1990 generally needs 40 calendar quarters of coverage to receive retirement benefits. Under Totalization Agreements, workers are allowed to combine earnings from both countries in order to qualify for benefits.

The agreement with Mexico, like other Totalization Agreements, would allow workers to qualify with just six quarters, or 18 months, of U.S. coverage.

In addition, advised TREA, that worker could be able to claim credits for work performed while in the United States illegally. The SSA maintains an "earnings suspense file," which tracks wages that cannot be posted to individual workers' records because there is no match for a name and Social Security number.

Once an immigrant gains access to a work authorized Social Security number — whether a legal citizen or not — wages earned while in the United States unlawfully could be reinstated to the worker's new Social Security account, warned TREA officers.

Such writing-on-the-wall concerns are not just being sounded by TREA, however.

Warnings by the GAO

In a recent special report to Congress, the GAO voiced a number of issues latent in the agreement:

• 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 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 six coverage credits.

• Under the proposed agreement, more family members of covered Mexican workers would become newly entitled because the agreements usually waive rules that prevent payments to non-citizens' dependents and survivors living outside the United States.

• The cost of such an agreement is highly uncertain. In March 2003, the Office of the Chief Actuary estimated that the cost of the Mexican agreement would be $78 million in the first year and would grow to $650 million (in constant 2002 dollars) in 2050. The actuarial cost estimate assumes the initial number of newly eligible Mexican beneficiaries is equivalent to the 50,000 beneficiaries living in Mexico today and would grow six-fold over time.

• This previous proxy figure does not directly consider the estimated millions of current and former unauthorized workers and family members from Mexico and appears small in comparison with those estimates. The estimate also inherently assumes that the behavior of Mexican citizens would not change and does not recognize that an agreement would create an additional incentive for unauthorized workers to enter the United States to work and maintain documentation to claim their earnings under a false identity.

• An analysis performed at the GAO's request shows that a measurable impact would occur with an increase of more than 25 percent in the estimate of initial, new beneficiaries. For prior agreements, error rates associated with estimating the expected number of new beneficiaries have frequently exceeded 25 percent, even in cases where uncertainties about the number of unauthorized workers were less prevalent.

• Because of the significant number of unauthorized Mexican workers in the United States, the estimated cost of the proposed Totalization Agreement is even more uncertain than in prior agreements.

Playing by the Rules

"The Social Security Administration itself warns that Social Security is within decades of bankruptcy — yet, they seem to have no problem making agreements that hasten its demise," said Ralph McCutchen, chairman of TREA.

"Our 1.2 million elderly members didn't play by the rules and sacrifice through difficult times so we could fund millions of workers who crossed the border and decided to work here illegally," McCutchen added.

TREA officers also warn that Mexico's retirement system is radically different than that of other participating countries.

For example, only 40 percent of non-government workers participate in Mexico's system, whereas 96 percent of America's non-government workers do. 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.

Uncovering the Ugly Truth

"I applaud the persistent efforts of TREA Senior Citizens League to try to get documents from the U.S. government about the U.S.-Mexico Social Security Totalization Agreement," said Rep. Walter Jones, R-N.C. "The American people are finally beginning to get some of the information regarding this Agreement that they have been seeking for so long."

According to the Social Security Administration, the Social Security Trust Fund will begin paying out more than it is taking in by 2017, and will be exhausted by the year 2040.

Phillips noted that [before the emergence of the agreement] "the Administration always called it ludicrous to suggest that illegal immigrants could get their hands on our Social Security."

"We not hearing that anymore," Phillips lamented.

© NewsMax 2007. All rights reserved.

[potlatch]

I hate reading the news anymore! Maybe we should just sell the US for $1.00 to Mexico and the terrorist and not go through it all step by step.

[ark_girl]

I renew an earlier question....did George Bush have a stroke at the start of his second term that we weren't told about? A sharp blow to the head? A brain tumor?

Second question: Why, why, why can we not find someone decent for that job who won't sell us up the river? Three Presidents in a row that suck. Good grief.

[janetgreen]

Someone tell me why I voted for Bush!

Maybe the same reason I did in 2000? - I believed the lie that he was a conservative. That was the lie of the century, and since he took office he has betrayed every conservative principle that ever existed.

America needs a strong third party to protect us from socialists like him and his cronies in "both" parties.

[LilyBean]

Might be your safest route. :(

[ark_girl]

Because while Bush has left MUCH to be desired, the alternatives were much worse. Although now, it's hard to see how much since we effectively have a democrat as President and a democrat congress with Republicans who won't stand up to them more than likely....at least they haven't given us ANY reason to believe they will.

[potlatch]

Lol, I forgot the sarcasm tag!

[Phantom Lord]

For years I have been saying that Bush is not and has never been a conservative. I continually got bashed, called names, told I wasn't a conservative, etc...

But I and others have been proven right as others eyes are now finally being opened.

But a little trivia for all of you. Who posted this back in Oct. 1999...

If anyone thinks that Father (and powerful supporters) won't have an influence on Son, you're crazy. Don't you ever wonder how and why the politically inexperienced, bad boy, G W Bush, got himself born again, rehabilitated and groomed to become governor of Texas? Not to mention front-runner in the Presidential race? What experience did/does he have for either position? A Bush presidency will be very dangerous for America.

Anybody care to guess? A hint, this poster became one of Bush's staunchest defenders and praised him as a true conservative for years following this quote. Good luck.

[janetgreen]

A Bush presidency will be very dangerous for America.

A prophecy which became reality.

[devolve]

- AG Gonzales has illegal alien relatives living in the USA.

- FL Governor Jeb Bush went to college in Mexico City and married a Mexican that was caught smuggling in jewelery thru Customs without declaring it.

- George P. Bush spoke for illegal aliens in their marches in 2006.

- One other Bush in the WH has Mexican ancestry.

--

Why is everyone so surprised now?

None of them are contributing or will ever rely on the Social Security system - They all have huge federal pensions and healthcare and are exempt.

[potlatch]

Yes, you're right.

[Phantom Lord]

Yes, but who said it?

[janetgreen]

this poster became one of Bush's staunchest defenders

This poster undoubtedly overdosed on Bush kool-aid...

[Jason_b]

"Only a matter of time before all the Sarah and John Conners..."

Both of them?

[janetgreen]

Yes, but who said it?

If I recall correctly, it was Mr. Jim Robinson who said it...

[razorback-bert]

Does this mean I can collect Mexician SS too?

[Phantom Lord]

Bing. You got it. JimRob.

[devolve]

I still cannot believe the fantasies of some that Jeb Bush could become President -

- He is against off-shore drilling off Florida while Cuba partners with Red China to slant-drill 50 miles off our coast to tap American oil reserves under our continental shelf (no word about this from algore or Nanzi Pelosi)

- He has encouraged and allowed illegal aliens to flood Florida and refused to use law enforcement to slam the doors and enforce Florida statutes

- A scofflaw Mexican First Lady would be as bad as a President Richardson

- Perhaps Jeb's daughter could be our next Drug Czar

[Deo volente]

Most people have attributed his pro-hispanic leanings to various motives, but I think it is as simple as his sister-in-law (Jeb's wife) and nieces and nephews. Recall Papa Bush and his love for his "little brown children."

I think it's about time the big brown leaders of those little brown children down in Mexico show some love for their own. The sad reality is, they couldn't care less for the economic welfare of their citizens. The more Mexicans flooding across our borders and depleting our financial resources, the better.

The thoroughly corrupt government officials of Mexico are sitting back and laughing their heads off at the utter stupidity and gullibility of our own so-called "leaders". And President Bush doesn't seem to have a clue, or even a care in the world.