Although the Social  Security Act provides that people meeting the work and contribution  requirements accrue benefits, the act also generally prohibits payment of  benefits to people who are not lawfully present in the U.S. as specified by  DHS regulations. IRTPA included several specific provisions  for strengthening the SSN enumeration process and documentation  requirements for obtaining SSNs and cards. IRTPA also required that SSA limit the number  of replacement cards it issues annually; adopt measures to improve  verification of documents presented to obtain an original or replacement  Social Security card; independently verify any birth record presented to  obtain an SSN; prevent the assignment of SSNs to unnamed children and  adopt additional measures to prevent assignment of multiple SSNs to the  same child; form an interagency taskforce to establish standards to better  protect Social Security cards and SSNs from counterfeiting, tampering,  alteration, and theft; and provide for implementation of security  requirements by June 2006. The Social Security Protection Act (SSPA) of 2004 imposed new  restrictions on the payment of Social Security benefits to noncitizens. Totalization Agreements

SSA also has specific procedures to award benefits for foreign-born  workers who work in both the U.S. and in another country with which the  U.S. has a totalization agreement. First, they eliminate dual social security  coverage and taxes that multinational employers and employees  encounter when workers temporarily reside in a foreign country with its  own Social Security program. Revised Enumeration Procedures for the Foreign-Born Are Expected to Reduce Potential for Abuse

In coordination with the State Department and DHS, SSA determines who  is eligible for an SSN by verifying certain immigration documents and  determining if an individual’s card requires a work restriction. Depending on their immigration status,  noncitizens may be eligible for one of three types of Social Security cards:  regular cards, those cards valid for work only with authorization from the  DHS, and nonwork SSN cards. Nonwork card: The third type of card is for people not eligible to  work in the U.S. SSA sends recipients of these SSNs a card showing  their name, SSN, and the inscription “NOT VALID FOR  EMPLOYMENT.” To be issued these cards, noncitizens who are legally  in the U.S. and do not have DHS permission to work must have been  found eligible to receive a federally-funded benefit or are subject to a  state or local law that requires them to have an SSN to get public  benefits. As of 2003, SSA had issued a total of  slightly more than 7 million nonwork Social Security cards, but in  recent years SSA has greatly reduced the number it issues. For example,  SSA requires third-party verification of all noncitizen documents, such as a  birth certificate, with DHS and the State Department before issuing an  SSN. Working undercover and posing as  parents of newborns, our investigators were able to obtain two SSNs using  counterfeit documents. Since SSPA required all noncitizens originally assigned  an SSN on or after January 1, 2004, to have a work authorized SSN to  accrue benefits, those living outside the country must also obtain a work- authorized SSN. SSA is also exploring a more systematic approach for  independently verifying foreign countries’ data, such as the use of  computer matches. Changes in immigration laws and shortcomings in the  enforcement of those laws make it difficult for SSA to identify noncitizens  who are eligible for SSNs and for benefit payments. Continued attention  to these issues by both SSA and the Congress is essential to ensure that  noncitizens receive benefits to which they are entitled and the integrity of  the Social Security program is protected.
Why GAO Did This Study

In 2004, an estimated 35.7 million foreign-born people resided in the United States, and many legitimately have SSNs. Many of these individuals have Social Security numbers (SSNs) which can have a key role in verifying authorization to work in the United States. However, some foreign-born individuals have been given SSNs inappropriately. Recent legislation, aimed at protecting the SSN and preventing fraud and abuse, changes how the Social Security Administration (SSA) assigns numbers and awards benefits for foreign-born individuals. The chairman of the Subcommittee on Social Security asked GAO to address two questions. First, how does SSA determine who is and is not eligible for an SSN? Second, how does SSA determine who is and is not eligible for Social Security benefits?

What GAO Found

SSA determines who is eligible for an SSN by verifying certain immigration documents and determining if an individual's card requires a work restriction. Some foreign-born individuals are eligible for one of three kinds of Social Security cards depending in part on their immigration status: (1) regular cards, (2) those valid for work only with authorization from the Department of Homeland Security (DHS), and (3) those that are not valid for work--non-work cards. As of 2003 SSA had issued slightly more than 7 million non-work cards to people who need them to receive benefits for which they were otherwise entitled. Both SSA's Inspector General and GAO have identified weaknesses in SSA procedures for assigning SSNs and issuing cards, also known as enumeration. For example, working undercover and posing as parents of newborns, GAO investigators were able to obtain Social Security cards by using counterfeit documents. Congress has enacted recent legislation strengthening the SSN enumeration process and documentation requirements. SSA is implementing the law and is improving document verification and now requires third-party verification of noncitizen documents such as birth certificates and visual inspection of documents before issuing an SSN. SSA also continues to strengthen program integrity by, for example, restricting the number of replacement cards. Congress and SSA have also improved laws and procedures designed to strengthen program integrity in the payment of benefits to the foreign-born. Due to provisions of the Social Security Protection Act of 2004, some foreign-born individuals who were not authorized to work will no longer be eligible for benefits. To be entitled to benefits, the law requires noncitizens originally assigned an SSN after 2003 to have a work-authorized SSN. Amendments to the Social Security Act in 1996 require individuals to be lawfully present in the U.S. to receive Social Security benefits, though some noncitizens can receive benefits while living abroad, such as noncitizens who have worked in the U.S. and in a country with which the U.S. has a totalization agreement. SSA's totalization agreements coordinate taxation and public pension benefits. The agreements help eliminate dual taxation and Social Security coverage that multinational employers and employees encounter when workers temporarily reside in a foreign country with its own Social Security program. Successful implementation of these agreements requires the countries involved to carefully coordinate and verify data they exchange. Computer matches with foreign countries, for example, may help protect totalization programs from making payments to ineligible individuals. SSA is exploring options for undertaking such exchanges.