Social Security Totalization Agreement with Mexico

The Social Security Totalization Agreement with Mexico: What You Need to Know

The Social Security Totalization Agreement with Mexico is a historic agreement between the United States and Mexico that allows workers who have earned credits in both countries to combine those credits for the purpose of determining eligibility for retirement, disability, or survivor benefits.

The agreement was signed in 2004 and went into effect on June 29, 2004. Since then, workers who have earned credits in both countries can qualify for benefits based on their combined credits, regardless of where they live.

Here’s what you need to know about the Social Security Totalization Agreement with Mexico:

Who is eligible?

To be eligible for benefits under the agreement, you must have earned credits in both the United States and Mexico. You must also meet the age and other eligibility requirements for the benefit you are seeking. For example, to qualify for retirement benefits in the United States, you must have earned at least 40 credits, while in Mexico, you must have contributed to the Mexican social security system for at least 500 weeks.

How does it work?

Under the agreement, if you have earned credits in both countries, your total credits will be used to determine your eligibility for benefits. If you have earned enough credits in one country to qualify for benefits, but not enough in the other country, your credits from both countries will be used to determine your benefit amount.

For example, if you have earned 20 credits in the United States and 300 weeks of contribution in Mexico, your total credits would be 120, which is enough to qualify for benefits in Mexico. However, if you also have earned 20 credits in Mexico and 20 credits in the United States, your total credits would be 140, which would qualify you for benefits in both countries.

What benefits are covered?

The agreement covers retirement, disability, and survivor benefits. It does not cover Medicare or Supplemental Security Income (SSI) benefits.

When you apply for benefits, you will need to provide proof of your earnings and credits in both countries. This can include tax returns, pay stubs, or other documents.

Why is this agreement important?

The Social Security Totalization Agreement with Mexico is important because it allows workers who have earned credits in both countries to receive the benefits they have earned. Without this agreement, these workers may not be able to receive benefits in either country, or may only be eligible for benefits in one country or the other.

The agreement also helps to prevent double taxation of social security contributions for workers who have earned credits in both countries.

In conclusion, if you are a worker who has earned credits in both the United States and Mexico, the Social Security Totalization Agreement with Mexico may be able to help you receive the benefits you have earned. Be sure to check with the Social Security Administration or the Mexican social security authorities to determine your eligibility and to apply for benefits under the agreement.