Summary: Under a totalization agreement, social security insurance credits earned by a worker in two or more countries are combined for consideration in each country to determine if the worker meets that country's requirements to be insured for benefits. Totalization permits foreign workers and certain U.S. workers to qualify for United States social security coverage with less than the required period of work under the U.S. system. On February 28, 1978, the President submitted to Congress the totalization agreement between the United States and Italy. Very limited cost and benefit data were submitted to Congress supporting the Italian totalization agreement, but two observations can be made concerning the agreement: (1) it will provide limited additional benefits for most persons affected; and (2) the Department of Health, Education, and Welfare's benefit estimates of the balance-of-payments gain has increased substantially and appears to be overstated. Most of the persons receiving totalization benefits are expected to reside in the United States and, if needy, such persons would probably be eligible for cash assistance under the Supplemental Security Income (SSI) Program. The benefits these persons become eligible for under totalization may not be fully realized because they could result in a dollar-for-dollar reduction in SSI benefits.
