Summary: A totalization agreement permits foreign workers and certain U.S. workers to qualify for United States social security coverage with less than the required period of work. On February 28, 1978, the President submitted to Congress the totalization agreement between the Un ited States and Italy. The Italian agreement will provide limited additional benefits for most persons affected, and the Department of Health, Education, and Welfare's (HEW's) benefit estimates of the balance of payments gain has increased substantially and appears to be overstated. HEW estimates that 35,000 persons will be eligible for some amount of totalized benefits under the agreement; however, according to HEW, only 200 persons who are not presently receiving benefits from either country will receive social security benefits under the agreement. Most of the persons receiving totalized benefits are expected to reside in the United States. If they are needy, such persons would probably be eligible for cash assistance under the Supplemental Security Income program. The Secretary of HEW has estimated a net annual gain in the U.S. balance of payments of $73 million as a result of this agreement. This includes HEW's calculation of $12 million in annual benefit payments that Italy will make to persons residing in the United States; this estimate appears overstated because current wage data instead of wage data covering the period of time worked were used.
