U.S. Social Security Pact with Mexico Faces Trouble

[papau]

http://www.boston.com/news/nation/washington/articles/2005/02/14/us_social_security_pact_with_mexico_faces_trouble


U.S. Social Security Pact with Mexico Faces Trouble
In an early test of strength over President Bush's immigration reform agenda, some conservatives and seniors organizations are campaigning to block implementation of a U.S.-Mexico pact on Social Security.



Also of interest:
http://www.boston.com/news/nation/articles/2005/02/14/reform_talk_passes_disability_program_by

Reform talk passes disability program by
By Michael Kranish, Globe Staff | February 14, 2005

CAVENDISH, Vt. -- <snip>The disability program has received relatively little attention amid all the talk about overhauling its sister program, Social Security retirement. Yet the disability program is one of the largest in government, providing $71 billion in annual benefits to 7½ million people. A raft of government reports has concluded that delays in granting benefits are all too common, with the full appeals process taking nearly three years.<snip>


The 12.4 percent in Social Security taxes that workers and employers pay includes a 1.8 percent tax that goes to a fund strictly for disability payments -- a levy that many workers may not realize they are paying. While every employee who pays Social Security taxes is entitled to retirement benefits, only those who pass a series of exams are allowed to receive disability payments.

The program has grown significantly as the baby boom population ages: About 7.5 million people receive the disability benefits, including 1.8 million dependents. The program's $71 billion per year cost is in addition to the $398 billion per year cost of retirement and survivor benefits.

While the White House says Bush is not yet focusing on the disability program, some in the disabled community worry that benefit cuts will be applied to both the retirement and disability programs as a way to save money. For example, if the retirement plan benefits are cut by tying payments from the current system of wage indexing to price indexing, as some have proposed, it is unclear whether the same cut would be applied to disability benefits.

In addition, Thomas Sutton, president of the National Organization of Social Security Claimants' Representatives, worries that Bush's plan for private Social Security accounts could hurt people with disabilities. He gave the example of a person who is disabled at age 37 and cannot return to work. That person would receive disability benefits but under the Bush plan would not be contributing to a private account. Upon retirement, that person would not have nearly as much money in a private account as a nondisabled person.
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