John Shaw: “Mr. Chairman, the Social Security so-called totalization agreements permit the United States and another country to…”

“Mr. Chairman, the Social Security so-called totalization agreements permit the United States and another country to coordinate their Social Security programs. The Social Security Administration has totalization agreements in force with 20 countries, including Canada, Australia, and most of Western Europe. Totalization agreements help American workers and American business. These agreements prevent the Americans working overseas for United States companies from having to pay two Social Security systems. As a result, American workers and their companies save approximately $800 million annually in foreign Social Security taxes. Totalization agreements also protect benefits for workers who divide their careers between two countries. In June, the Commissioner of Social Security and Director General of the Mexican Social Security Institute signed a totalization agreement. Now, what does that mean? This agreement has not been approved. The signing of the agreement is the first step in the approval process. The State Department and the White House must review the agreement in order to determine whether the agreement should be sent to Congress for approval. We have no idea at this time whether it will even be sent to us for approval. Congress has the final say.”