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 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.
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.
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.
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/.
Bookmark for later read when my eyes are fully opened. Thank you.
How many workers US workers are in Mexico? How many Mexican workers are in the US? How does this even out?
Since we know Jo Anne Barnhart, the Bush appointee Social Security administrator, is defending her position that you just posted why don't you be honest and read the pro and cons of this agreement.
I suggest you read paragraph 2 to start with then scroll down to page 16 of 35 and read this. Then scroll down to the chart about the underestimated and overestimated countries. This is a non partrisan by the ss administration and the government accountability office.
http://www.gao.gov/new.items/d03993.pdf
By the way, I have read the agreement. Have you?
But, but...how can it be George Bush's fault if he never signed the agreement with Mexico? Not to mention the other agreements since 1970.
A perfectly good Bush Bashing gone awry because the facts don't support the whiners.
You seem to be suggesting that these agreements with other countries apply to illegal aliens as well, what a crock. Do you know what happens when they catch an illegal alien working in Mexico. If he is lucky, all he gets is a felony conviction, before he is beat senseless and dumped across the border.
bttt