Critics say Social Security deal would give billions to Mexicans
Federal officials insist it would cost only $105 million for the first 5 years
By MICHELLE MITTELSTADT
Copyright 2007 Houston Chronicle Washington Bureau
WASHINGTON
— A confidential 2004 agreement between the United States and Mexico could require Social Security to pay billions of dollars in benefits to Mexicans who paid payroll taxes in this country, according to a senior citizens' group that forced the document's disclosure.
The Social Security Administration insists that the agreement — which has yet to be signed by President Bush and sent to Congress for consideration — would cost the retirement and disability fund a relatively scant $105 million annually for the first five years.
But the TREA Senior Citizens League, an offshoot from a group of retired military personnel, and some members of Congress contend the agreement opens the door to paying benefits to millions of Mexicans who have worked illegally in the United States, as well as their dependents, even if they now reside in Mexico.
Government sued
After government officials refused for more than three years to release the document, the seniors advocacy group obtained it by suing the Bush administration. TREA embargoed the text for release today.
Illegal immigrants aren't eligible for Social Security. But their work history in the United States would count toward eligibility for benefits if they eventually obtain legal residence. Congress is expected to consider this year a bill giving most illegal immigrants a chance to qualify for citizenship, and President Bush backs the general concept.
"We could have billions, maybe tens of billions, being paid out to people who have been here illegally," said TREA Senior Citizens League spokesman Brad Phillips. "And we don't know where that money is coming from. And we don't know how much money we're talking about because the Social Security Administration isn't telling us."
The Government Accountability Office, the investigative arm of Congress, also has questioned the Social Security Administration's math and assumptions, saying the payouts could be much higher than the agency claims.
"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," TREA chairman Ralph McCutchen charged.
The organization has a membership of 1.2 million.
The deal with Mexico has been challenged on and off Capitol Hill as a potentially huge drain on the Social Security trust fund and a possible magnet for more illegal immigration.
Defenders of the agreement argue that it is a matter of fairness.
"It's only for people who have paid into the system," said Josh Bernstein of the National Immigration Law Center, a pro-immigrant advocacy group.
Social Security Administration spokesman Mark Lassiter said the agency had to work through "legal questions" before releasing an agreement that has yet to take effect.
Under the agreement, Mexicans could qualify for Social Security after 18 months of work in the United States. But first they would have to reach a total of 40 quarter-years of work — as required of all full-time residents of the United States — with work in Mexico, Lassiter said.
And, he stressed, the U.S. share of their benefits would be calculated based on their work time in the United States rather than their overall work history.
During consideration of a major immigration bill last year, the Senate narrowly rejected an amendment by Sen. John Ensign, R-Nev., that would have denied Social Security to illegal immigrants eligible for legalization.
Sen. John Cornyn, R-Texas, who voted for the proposal, said Wednesday, "My record is clear: I do not believe that those who engage in illegal activity should benefit financially for their illegal actions."
Deal in limbo
It's uncertain when the administration would send the agreement to Congress. The deal has remained in limbo ever since its signing in 2004.
Lassiter said the administration is waiting to receive diplomatic "notes" from Mexico that would further clarify the issue of benefits for illegal immigrants. "There has never been a response from them," Lassiter said.
A Mexican government official, speaking on condition of anonymity, said consultations continue.
"We believe that this agreement will provide substantial protections for both Mexican and American workers," the official said.
michelle.mittelstadt@chron.com
Originally Posted by OklahomaTuba
