http://www.tscl.org/NewContent/102638.asp

Would You Take A Cut In Social Security To Pay Benefits Based On Illegal Work?

Alexandria, VA (May 9, 2006) - Would you take a cut in your Social Security so the government can pay benefits to immigrants based on earnings while illegal? "That would happen if Congress passes guest worker immigration legislation and allows a Social Security totalization agreement with Mexico to take effect," warns Ralph McCutchen, Chairman of TREA Senior Citizens League (TSCL).

"The public has a right to know the full costs of guest worker immigration legislation under debate in the Senate," McCutchen states. "Social Security cuts are a significant hidden cost of guest worker immigration legislation and a pending Social Security totalization agreement with Mexico. That cost would make itself apparent in just a few short years," he says.

Last year, both the President and many Members of Congress said that Social Security was in such dire financial condition that benefits would have to be cut to make the program solvent. Nevertheless, Congress would allow access to Social Security for potentially millions of new people under both guest worker immigration reform legislation and a related U.S. Social Security totalization agreement with Mexico. Under each, even immigrants who worked here for some time illegally would gain access to work-authorized Social Security numbers. Once an immigrant has a work-authorized number, all work credits, whether earned legally or illegally, may be applied to their Social Security account.[1] "Thus immigrants and all their entitled dependents, would become eligible for benefits sooner and potentially draw higher benefits, based on earnings while illegal," McCutchen explains.

"The effect on Social Security would be severe, because the program pays more than just retirement benefits," McCutchen points out. "It also pays a maximum family benefit and many immigrants tend to have large families," he adds. A spouse, divorced spouse, children, even dependent parents who meet eligibility requirements may receive benefits based on a worker's account. For example, in 2006 a worker retires with an initial monthly benefit of $1,700. The total maximum family benefit based on that worker's account, however, is $2,917.46.[2] Thus, a retiree and eligible family members could receive a monthly maximum of as much as $2,917.46.

Regardless of whether Congress moves on guest worker immigration legislation, the President may still send the U.S.-Mexico Totalization Agreement to Congress. The U.S. currently has 21 totalization agreements with other nations. They allow workers who split their careers between the U.S. and another country to combine (totalize) work credits earned in both countries in order to meet the minimum benefit qualification requirements.[3]

Unlike legislation, totalization agreements are treaties negotiated by two nations and don't require Congressional approval to take effect. Congress, however, can stop a totalization agreement from taking effect by disapproving the agreement. Once Congress receives the agreement from the President, lawmakers will have just 60 legislative days in which to act.

TSCL endorses H. Res. 20 introduced by Representative J.D. Hayworth (AZ) and H. Con. Res. 50 introduced by Representative Virgil Goode (VA) disapproving the agreement. "Please contact your Representative and ask him or her to stop the totalization agreement with Mexico by co-sponsoring these Resolutions," states McCutchen.
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