Social Security Administration: A More Formal Approach Could Enhance SSA's Ability to Develop and Manage Totalization Agreements
Highlights
Since 1977, the U.S. has entered into bilateral social security totalization agreements with 20 foreign countries. In fiscal year 2004, the Social Security Administration (SSA) paid approximately $206 million to 102,000 beneficiaries in these countries based on their eligible periods of coverage. If put into force, pending agreements with Mexico and Japan will increase the number of beneficiaries receiving totalized benefits, as well as the amount of benefits paid. Given the costs to the Social Security Trust Funds posed by existing and pending agreements, GAO was asked to (1) document SSA's policies and procedures for assessing the accuracy of foreign countries' data when entering into a totalization agreement, and (2) examine SSA's processes for verifying beneficiaries' initial and continuing eligibility for benefits once an agreement is in force.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Social Security Administration | In light of the potential impact of existing and future totalization agreements on the Social Security Trust Funds, the Commissioner of Social Security should develop a standardized set of protocols that integrate and formalize the various initiatives for verifying foreign countries' data when negotiating future agreements. |
Closed – Implemented
SSA developed and is now using a standardized set of protocols that integrates and formalizes the various initiatives for verifying foreign countries' data when negotiating future totalization agreements. The protocols, among other things, provide procedures for verifying that foreign countries' statistical records are reliable and for verifying records of coverage. It also provides steps to follow in evaluating foreign countries' systems infrastructure for safeguarding their records of coverage.
|
| Social Security Administration | In light of the potential impact of existing and future totalization agreements on the Social Security Trust Funds, the Commissioner of Social Security should explore cost-effective ways to improve the current processes for verifying beneficiaries' initial and continuing eligibility for benefits. Such improvements may include enhancing the scope of the validation studies, and assessing ways to independently verify the results of its questionnaires. Other potential improvements may include enhanced efforts to explore the potential for developing a mechanism--either manual or electronic--to independently verify the death of all foreign beneficiaries living abroad, including totalized beneficiaries. |
Closed – Implemented
SSA agrees with this recommendation, is exploring ways to improve existing processes for verifying beneficiaries' initial and continuing eligibility for benefits, and has taken a number of actions to address this recommendation. SSA is moving forward with efforts to conduct matches of death data with totalization partner countries. It is also tailoring the approach used in conducting validation studies to specific countries' needs or circumstances to provide the best results in the most cost effective manner.
|