WASHINGTON, Dec. 29 /PRNewswire-USNewswire/ -- After numerous refusals
over three and a half years, the Social Security Administration (SSA) has
released the first known public copy of the U.S.-Mexico Social Security
Totalization Agreement. The government was forced to make the disclosure in
response to lawsuits filed under the Freedom of Information Act by TREA Senior
Citizens League, a 1.2 million-member nonpartisan seniors advocacy group.
The Totalization Agreement could allow millions of illegal Mexican workers
to draw billions of dollars from the U.S. Social Security Trust Fund.
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 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 the TREA
Senior Citizens League.
The U.S. currently has 21 similar agreements in effect with other nations,
which are intended to eliminate dual taxation for persons who work outside
their country of origin. All of the agreements are with developed nations with
economies similar to that of the U.S.
For example, 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.
But 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.
"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 SSA, 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.
With 1.2 million members, TREA Senior Citizens League is one of the
nation's largest nonpartisan seniors groups. Visit
http://www.SeniorsLeague.org for more information or to see the Totalization
Agreement documents.
SOURCE TREA Senior Citizens League