www.tscl.org
Two weeks ago the Social Security Administration, after a lengthy Freedom of Information Act battle, released the US-Mexico Social Security Totalization Agreement where “Illegal Mexican Workers Could Receive Billions of Dollars from U.S. Social Security System.” Lawsuits to access this report were filed by the non-partisan TREA Senior Citizens League.
Let me quote a few brief paragraphs from their article that can be found at:
http://www.tscl.org/NewContent/102800.asp?PRInd=Yes
“A loophole in current Social Security law could allow millions of today’s Mexican workers to eventually collect billions of dollars worth of Social Security benefits for earnings under fraudulent or “non-work authorized” Social Security numbers, putting huge new pressures on the Social Security Trust Fund.
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 he or she has met eligibility requirements.
In addition, that worker could be able to claim credits for work performed while in the U.S. 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 U.S. unlawfully could be reinstated to the worker’s new Social Security account.”
Their report closes by stating that “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.”
http://www.tscl.org/NewContent/102800.asp?PRInd=Yes
What’s your thoughts on this controversial topic?
This is an interesting question. Given that this is the only tax a lot of illegal aliens pay, part of me says let the government keep it as reimbursent for the cost of education, healthcare, prisons, law enforcement etc.
However, that is not right on a fundamental level. These taxes should go into a private account for the person who earned the money to be invested and used to pay retirment benefits or bequeathed to an heir in the event of death.
To address the societal costs of education, healthcare, etc. we need to get the government out of those services and have them paid for by the users of such services. This is the only way to ensure that people pay their fair share for the services they use.
Why not send the projected amount of money to the mexican government to be dispursed among those who have earned it by crossing the border illegally?
If a person pays into a system, a person gets that system’s benefits – anything less seems akin to slavery. Are those working “under fraudulent or “non-work authorized” Social Security numbers” people who paid into the system? Is that what “eligibility requirements means? Nothing in this announcement appears to address whether they paid into the system.
Good evening James Spady.
You raise an interesting point. I will attempt to get a copy of the actual document signed in June of 2004 by President Bush to see if social security taxes have been removed from the paychecks of these illegal workers.
The entire text of the article raises some other points to consider. If you have not read it let me point out that the credits earned here are different than those earned in Mexico. Further, the worker can claim earnings from both countries to qualify for benefits. It’s of interest to read that in Mexico “workers get back only what they put in plus accrued interest.”
This is nothing new, its been going on for years – I’ve known Mexicans that work here while waiting the 10+ years to obtain a visa – then when they became citizens they used their tax & pay stubs to verify contributions to the SSA to straighten out their account – they still need 40 credits (10 work years)to qualify for the basic benefit.
However, on balance Mexicans probably pay more into the fund than they ever collect due to lack of paper work, return to Mexico, ignorance of the paper work, etc.
We have a govt org to catch illegals and its not the SSA, DMV, City Police or county health agency.
Come on, whats the beef with this agreement/treaty, everyone knows you can’t trust the USA when it comes to treaties. Ask an Indian
No way should illegal workers who fraudulently stole someone else’s identity be eligible to receive Social Security benefits. Better to give that money to the identity theft victims, or if the SSN was unused, put it back into the pot to keep Social Security solvent for just a little longer.