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Social Security: Proposed Totalization Agreement with Mexico Presents Unique Challenges

GAO-03-1035T Published: Sep 11, 2003. Publicly Released: Sep 11, 2003.
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Highlights

Totalization agreements foster international commerce and protect benefits for persons who have worked in foreign countries. They eliminate dual social security taxes that multinational employers and their employees pay when they operate and reside in countries with parallel social security systems and fill gaps in benefit protection for persons who have worked in different countries. Because Mexicans are believed to represent a large share of the millions of unauthorized workers present in the United States, a totalization agreement with Mexico has raised concerns that they would become newly eligible for social security benefits. To shed light on the possible impacts, this testimony (1) describes the Social Security Administration's (SSA) processes for developing the agreement with Mexico, (2) explains how the agreement might affect the payment of benefits to Mexican citizens, and (3) assesses the cost estimate for such an agreement.

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Immigrant laborCost analysisCost controlDependentsFederal social security programsImmigration enforcementInternational agreementsImmigration statusSocial security benefitsSocial security taxesPolicies and procedures