Workers receiving health and retirement benefits they have paid for over a lifetime —...
, an economist at the University of Southern California, called out the problem of a gap in retirement rights of Mexican nationals who work part of their lives in the U.S. but return to Mexico to retire.Commentary: The U.S. and Mexico need a binational retirement policy
What I did not know is that the U.S. entered many totalization agreements after WWII, when European workers were immigrating to the United States. Today, the U.S. has them with 28 countries. They cover most of Europe as well as Canada, Australia, South Korea and Japan. A Mexican agreement was negotiated and signed in 1994 — the year of NAFTA negotiations — but never ratified.
Contrary to our most fearful and xenophobic instincts, undocumented workers from countries like Mexico on balance are. They typically pay in but never receive benefits, creating an estimated $7 billion net surplus per year to the system. A totalization agreement does not address undocumented workers, however; it only works for documented workers who accumulate years of paying in.
Here’s where I should lay my cards on the table about my view on the intersection of immigration and money. I subscribe to the view of writer Matthew Yglesias in his 2020 book “
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