United States Government Accountability Office

GAO Testimony before the Subcommittee on 

Social Security, Committee on Ways and 

Means, House of Representatives

SOCIAL SECURITY 

ADMINISTRATION 

Procedures for Issuing 

Numbers and Benefits to 

the Foreign-Born 

Statement of Barbara D. Bovbjerg, Director, 

Education, Workforce, and Income Security 

For Release on Delivery

Expected at 10:00 a.m. EST 

Thursday, March 2, 2006

 

GAO-06-253T 
What GAO Found

United States Government Accountability Office

Why GAO Did This Study

Highlights

Accountability Integrity Reliability

March 2, 2006

SOCIAL SECURITY ADMINISTRATION

Procedures for Issuing Numbers and 

Highlights of GAO-06-253T, a testimony Benefits to the Foreign-Born 

before the Subcommittee on Social 

Security, Committee on Ways and Means, 

House of Representatives

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 foreignborn 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 Recommends

GAO is making no new 

recommendations in this 

testimony. 

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. 

www.gao.gov/cgi-bin/getrpt?GAO-06-253T.

To view the full product, including the scope 

and methodology, click on the link above. 

For more information, contact Barbara 

Bovbjerg at (202) 512-7215 or 

bovbjergb@gao.gov.. 
Mr. Chairman and Members of the Subcommittee: 

I am pleased to be here today to discuss the Social Security 

Administration’s (SSA) procedures for issuing Social Security numbers 

(SSNs) and benefits to foreign-born individuals. In 2004, an estimated 

35.7 million foreign-born people resided in the United States, and many 

legitimately have SSNs. In light of concern that foreign-born individuals 

may have been given SSNs inappropriately as well as recent legislation 

that changes how SSA assigns numbers and awards benefits for foreignborn individuals,1

 you asked us 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 to receive Social Security 

benefits? 

GAO has over the past few years studied several issues related to these 

topics. For example, in 2003 we reported on SSA’s issuance of SSNs to 

foreign-born noncitizens.2

 In February of 2005, we reported on SSA’s 

ability to develop and manage agreements with other nations to avoid 

duplicating Social Security and other taxes and benefits for workers who 

have been employed both in the U.S. and in another country, commonly 

known as totalization agreements.3

 In both reports GAO found that SSA 

was undertaking improvements in its procedures for issuing SSNs and 

benefits to the foreign-born, but that SSA nonetheless remained vulnerable

to errors and fraud. My remarks today are drawn from that past work, 

updated for recent changes in law and SSA procedures. We conducted our 

review in accordance with generally accepted government auditing 

standards. 

In summary, SSA determines who is eligible for an SSN by verifying 

certain immigration documents and determining if an individual’s card 

 1

The Social Security Protection Act of 2004, Pub. L. No. 108-203 (2004) and the 

Intelligence Reform and Terrorism Prevention Act of 2004, Pub. L. No. 108-458 (2004). 

2

GAO, Social Security Administration: Actions Taken to Strengthen Procedures for

Issuing Social Security Numbers to Noncitizens, but Some Weaknesses Remain, 

GAO-04-12 (Washington, D.C.: Oct. 15, 2003). For convenience, we use the term 

“noncitizens” to refer to aliens as defined by the Immigration and Nationality Act, Pub. L. 

No. 82-414 (1952). This act defines an alien as “any person not a citizen or national of the 

United States.” 

3

GAO, Social Security Administration: A More Formal Approach Could Enhance SSA’s

Ability to Develop and Manage Totalization Agreements, GAO-05-250 (Washington, D.C.: 

Feb. 28, 2005). 

Page 1 GAO-06-253T 
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—nonwork cards. As of 2003 SSA had 

issued slightly more than 7 million nonwork cards to people who needed 

them to receive benefits for which they were otherwise entitled.4

 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 in 2003, 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 it issues. 

Congress and SSA have also improved laws and procedures designed to 

strengthen program integrity in the payment of benefits to the foreignborn. 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 workauthorized SSN. Amendments to the Social Security Act in 19965

 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 

 4

GAO-04-12. 

5

Illegal Immigration Reform and Immigrant Responsibility Act of 1996, Pub. L. No. 104-

208 (1996). 

Page 2 GAO-06-253T 
programs from making payments to ineligible individuals. SSA is exploring 

options for undertaking such exchanges. 

Originally, SSNs were used to keep track of earnings, contributions, and 

old-age, disability, and survivor benefits for people covered by the Social 

Security program. Increasingly, however, SSNs have been used for a wide 

variety of purposes by private firms and federal, state, and local 

governments. Cases in which ineligible foreign-born individuals have 

obtained or used SSNs to secure employment and receive Social Security

benefits, and increasing incidents of identity theft, have focused attention

on the need to prevent abuse of SSNs. 

Background 

An estimated 96 percent of workers in the U.S., including many foreignborn citizens and noncitizens, are required to pay Social Security payroll

taxes, also called Federal Insurance Contribution Act (FICA) taxes.6

 When

workers pay Social Security taxes, they earn up to 4 coverage credits each

year.7

 Generally 40 credits—equal to at least 10 years of work—entitle 

workers to Social Security benefits when they reach retirement age.8

Social Security benefits are based on workers’ covered earnings during 

their career. Different requirements apply in cases where workers become 

disabled or die with relatively short work careers. 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. 

In fiscal year 2005, SSA assigned about 1.1 million original SSNs to 

noncitizens, representing about one-fifth of the 5.4 million original SSNs 

issued that year. Fewer than 15,000 of these were cards with “nonwork” 

SSNs issued to noncitizens unauthorized to work in the U.S. under 

 6

Workers who are not covered include some federal employees hired before 1984, some 

state and local workers, and college students working at their academic institution. 

7

The amount of earnings needed for a credit changes from year to year. In 2006, workers 

earn one quarter credit for each $970 they earn, up to a maximum of four credits each year. 

8

Workers born in 1929 or later need a minimum of 40 quarters to become eligible for 

benefits. They become eligible for full retirement benefits from age 65 to age 67, depending

on when they were born. Reduced retirement benefits may be available at age 62. 

Page 3 GAO-06-253T 
immigration law.9

 SSA also issues replacement cards to people who have 

already been assigned SSNs, but have lost their card. In fiscal year 2005, 

SSA issued over 800,000 such replacement cards to noncitizens, about 

7 percent of the 12.1 million replacement cards issued that year. 

Citizenship and 

Immigration Status 

SSA uses different procedures for assigning SSNs depending on whether 

individuals are born in the U.S. or are foreign-born and depending on their

citizenship or immigration status. 

• Almost all individuals born in the U.S. or in U.S. jurisdictions are U.S. 

citizens at birth;10 however, some foreign-born individuals can also 

become U.S. citizens if their adoptive or birth parents are U.S. citizens 

or if they become naturalized citizens.

11 Because foreign-born citizens 

are eligible for the same types of SSNs and benefits as U.S.-born 

citizens, we will focus for the remainder of this testimony on 

noncitizens. 

U.S. Citizens: 

• Immigrants are noncitizens who may lawfully reside and work 

permanently in the U.S. About 600,000 to 1.1 million noncitizens come 

to the US each year as immigrants. 

Noncitizens: 

• Nonimmigrants include noncitizens who come to the U.S. lawfully (for 

example, with temporary visas) and those who reside in the U.S. 

unlawfully (in violation of the Immigration and Nationality Act). 

Nonimmigrants who remain in the U.S. without DHS authorization 

overstay their nonimmigrant visas or enter the country illegally. As of 

2004, an estimated 10.3 million unauthorized noncitizens lived in the 

U.S., according to the Pew Hispanic Center’s analysis of March 2004 

Current Population Survey and other Census data. 

 9

The Immigration Reform and Control Act, Pub. L. No. 99-603 (1986), requires that 

individuals provide documents that establish their identity and eligibility to work in the

United States, such as passports, driver’s licenses and the Social Security card, among

others. Unauthorized workers sometimes buy, steal, or produce counterfeit documents or

use other people’s legitimate documents to give to an employer in an attempt to 

demonstrate, falsely, compliance with the legal requirements. 

10This does not apply to people born in the U.S. who were children of foreign heads of state 

or children of foreign diplomats.

11Naturalization requires, among other things, a period of continuous residence in the U.S.

and passing a citizenship test. 

Page 4 GAO-06-253T 
Responsibilities for 

Preventing Abuse of SSNs 

and Improper Social 

Security Payments 

The State Department, DHS, SSA, and employers have responsibilities to 

help ensure that noncitizens who are not authorized to work are denied 

employment. The State Department identifies who among people abroad 

seeking to come to the U.S. is eligible to enter the U.S. and who is eligible 

to work in the U.S. DHS denies entry to people who are ineligible and 

enforces immigration requirements in cases where people enter the U.S. 

illegally or work without authorization. In cooperation with the State 

Department and DHS, SSA assigns SSNs to eligible noncitizens. Employers 

are required to inspect employees’ work authorization documents.12 A 

regular Social Security card can be one of the key documents that 

employers use to verify that employees are authorized to work. In some 

cases, however it may be difficult to distinguish a regular card from a 

nonwork card. Specifically, cards for individuals not eligible to work did 

not contain the restriction “NOT VALID FOR EMPLOYMENT” until May 

1982. Finally, the SSA ensures that benefit payments go only to people 

who have earned them and who are lawfully present in the U.S. or in 

another country with which the U.S. has an agreement for reciprocal cross 

border payment of benefits. 

Recent Legislation to 

Prevent Social Security 

Fraud and Abuse 

The Intelligence Reform and Terrorism Prevention Act of 2004 (IRTPA) 

was enacted in response to the terrorist attacks of September 11, 2001 to 

reform our nation’s intelligence community and strengthen terrorism 

prevention and prosecution, border security, and international 

cooperation and coordination. IRTPA included several specific provisions

for strengthening the SSN enumeration process and documentation 

requirements for obtaining SSNs and cards. For example, the act required

minimum standards for birth certificates and directed the Department of 

Health and Human Services to establish these standards in consultation 

with DHS, SSA, and others. 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, 

 12Employers must complete an Employment Eligibility Verification (DHS Form I-9) 

certifying that they have examined documents presented and that the documents appear

genuine and relate to the person presenting them. 

Page 5 GAO-06-253T 
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.13

Before these provisions went into effect, all payments into the system 

would count toward insured status, regardless of whether or not the 

noncitizen was authorized to work by DHS. Under this new law, 

noncitizens who apply for benefits with an SSN originally assigned after 

2003 must have work authorization at the time their SSN is assigned or at 

some later point before applying for benefits to gain insured status under 

the Social Security program. If the individual never had authorization to 

work in the United States, none of his or her earnings would count toward 

insured status and neither the worker nor dependent family members 

could receive Social Security benefits. 

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. These are bilateral agreements intended 

to accomplish three purposes. 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. Under these agreements, U.S. employers and 

their workers sent temporarily abroad benefit by paying only U.S. social 

security taxes, and foreign businesses and their workers benefit by paying

only Social Security taxes to their home country. Second, the agreements 

provide benefit protection to workers who have divided their careers 

between the U.S. and a foreign country, but do not qualify for benefits 

under one or both Social Security systems, despite paying taxes into both.

Totalization agreements allow such workers to combine (totalize) work 

credits earned in both countries to meet minimum benefit qualification 

requirements. Third, totalization agreements generally improve the 

portability of Social Security benefits by authorizing the waiver of 

residency requirements. The U.S. has totalization agreements in effect with

21 countries—several western European countries, and others including 

Canada, Australia, Japan, South Korea, and Chile. (See table 4 in App. I for 

a list of countries with which the U.S. has totalization agreements.) 

 13This applies to retirement, survivors, and disability benefits. 

Page 6 GAO-06-253T 
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. Our 2003 

report identified improvements SSA had made in its enumeration 

processes, but also pointed to continued weaknesses, some of which SSA 

and the Congress have since addressed.14

Foreign-Born may be 

Eligible for One of Three 

Types of Social Security 

Cards 

Under current law U.S. citizens are eligible for SSNs whether they were 

born in the U.S. or elsewhere. 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. 

1. Regular Social Security card: The first and most common type of 

card is for individuals who are eligible to work. Individuals issued 

these SSNs receive a Social Security card showing their name and SSN 

without marked restriction. To be eligible for this card an individual 

must be one of the following 

• U.S. citizen (whether foreign-born or not), 

• noncitizen lawfully admitted to the U.S. for permanent residence 

(an immigrant), 

• noncitizen with permission from the DHS to work permanently in 

the U.S.,15

 or 

• member of a group eligible to work in the U.S. on a temporary basis 

(e.g., with a work visa, certain authorized workers in an approved 

exchange program).16

 14GAO-04-12. 

15For example, refugees, people granted asylum and citizens of Compact of Free 

Association countries—the Marshall Islands, the Federated States of Micronesia, and the

Republic of Palau. 

Page 7 GAO-06-253T 
2. DHS-authorized work card: A much less common type of Social 

Security card is issued to noncitizens who are eligible to work under 

limited circumstances. They receive a card showing the inscription 

“VALID FOR WORK ONLY WITH DHS AUTHORIZATION.” To be 

eligible for these cards noncitizens must have DHS permission to work 

temporarily in the U.S. SSA issues these cards to eligible workers, such 

as certain foreign students and spouses and children of exchange 

visitors.17

3. Nonwork card: The third type of card is for people not eligible to 

work in the U.S.18 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. Examples include Temporary Assistance for Needy Families, 

Supplemental Security Income, Social Security Survivor benefits, 

Medicaid, and Food Stamps. As of 2003, SSA had issued a total of 

 16Specifically, these include authorized noncitizens working in certain designated fields

including registered nurse; agricultural worker; nonagrarian seasonal workers and others

(with visa status H-1C, H-2A, H-2B, or H-1B, respectively); authorized foreign students 

working in on-campus jobs or in school-approved off-campus jobs providing practical 

training that is a part of the educational program; or authorized workers in approved 

exchange programs, such as au pair programs (involving work for a host family); and

programs for visiting professors, scholars, and physicians. Although authorized work for 

these last two groups is often not employment covered by Social Security, people in these 

groups are eligible for Social Security cards. Additional groups eligible for these cards

include authorized foreign government officials or employees and foreign government’s

representatives to international organizations. 

17In some cases, for example, SSA issues these cards to foreign students for optional 

practical training, an internship with a recognized international organization, or in cases of 

severe economic hardship. In these cases SSA must verify the applicant’s documents and 

see evidence of a job commitment and specific DHS authorization before issuing a SSN 

card. 

18Whether or not noncitizens are eligible to work in the U.S., their income from

employment and other sources, such as investment income, is generally subject to the 

same tax laws that apply to citizens. Individuals not authorized to work in the U.S. and not 

eligible for an SSN who owe federal income taxes can obtain a taxpayer identification 

number to conduct business with a bank and file IRS tax returns. An Individual Taxpayer 

Identification Number (ITIN) issued by the Internal Revenue Service is a 9-digit number 

formatted like an SSN, but with a “9” at the beginning of the number. 

Page 8 GAO-06-253T 
slightly more than 7 million nonwork Social Security cards, but in 

recent years SSA has greatly reduced the number it issues.19

SSA Has Made Some 

Progress in Addressing 

Weaknesses in the 

Enumeration Process 

Our 2003 report identified improvements SSA had made in its enumeration 

processes, but also pointed to continued weaknesses, some of which SSA 

and the Congress have since addressed. We found that SSA has over the 

years improved document verifications and developed new initiatives to 

prevent the inappropriate assignment of SSNs to noncitizens. 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. SSA also requires field staff to visually inspect documents before 

issuing an SSN. However, many field staff we interviewed at that time 

were relying heavily on DHS’s verification and neglecting SSA’s standard 

inspection practices, even though both were required. We found that SSA’s

automated system for assigning SSNs was not designed to prevent issuing 

SSNs if field staff bypass required verification steps. We also found that 

SSA has undertaken new initiatives to shift the burden of processing 

noncitizen SSN applications and verifying documents away from its field 

offices. In late 2002, SSA began phasing in a new process for issuing SSNs 

to noncitizens, called “Enumeration at Entry” (EAE). Through this 

initiative, immigrants 18 and older can visit a State Department post 

abroad to apply for an SSN at the same time they apply for a visa to come 

to the U.S. The State Department and DHS authenticate the documents 

and transmit them to SSA, which then issues the SSN. Also, SSA was 

planning to expand the program over time to include other noncitizen 

groups, such as students and exchange visitors. In addition, SSA 

established a specialized center in Brooklyn, New York, which focuses 

exclusively on enumeration and utilizes the expertise of DHS immigration 

status verifiers and investigators from SSA’s Office of the Inspector 

General. More recently, SSA established a similar center in Las Vegas, 

Nevada. 

At the time we did our field work for the 2003 report, SSA had not 

tightened controls in two key areas of its enumeration process that could 

be exploited by individuals seeking fraudulent SSNs: the assignment of 

SSNs to children under age 1 and the replacement of Social Security cards.

SSA requires third-party verification of the birth records for U.S.-born 

 19In 1998 alone, SSA issued 128,000 nonwork SSNs, and by fiscal year 2005 the number was 

fewer than 15,000. 

Page 9 GAO-06-253T 
children age 1 and over, but calls only for a visual inspection of birth 

documents for children under age 1. In our field work, we found that this

remains an area vulnerable to fraud. Working undercover and posing as 

parents of newborns, our investigators were able to obtain two SSNs using 

counterfeit documents. Since then the IRTPA was enacted and requires 

SSA to independently verify any birth documents other than for purposes 

of enumeration at birth.

Until the passage of the IRTPA, SSA’s policy allowed individuals to obtain 

up to 52 replacement cards per year, leaving it vulnerable to misuse. While 

SSA requires noncitizens applying for a replacement SSN card to provide 

the same identity and immigration documents as if they were applying for 

an original SSN, SSA’s requirements for citizens were much less stringent. 

Individuals could obtain numerous replacement SSN cards with relatively

weak or counterfeit documentation for a wide range of illicit uses, 

including selling them to noncitizens. 

Our 2003 report contained six recommendations to SSA. As shown in table 

1 below, SSA has implemented all, except one concerning enhancement of 

its Modernized Enumeration System to prevent issuance of SSNs without 

use of required verification procedures. In the interim, however, SSA now 

requires staff to use a software tool that documents verification 

procedures. Although SSA has implemented our recommendation 

concerning an evaluation of the Enumeration at Entry program, the results 

of the evaluations prompted the SSA’s Office of Inspector General and

Office of Quality Assurance and Performance Assessment to recommend 

several additional measures to correct errors during the early 

implementation of the program. 

Page 10 GAO-06-253T 
Table 1: Status of GAO’s October 2003 Recommendations to the Commissioner of Social Security to Strengthen the Integrity 

of SSA’s Policies and Procedures for Enumerating Noncitizens 

GAO recommendation Status

1 Field office document verification: 

Perform systematic reviews of field office compliance with verification 

requirements for enumerating noncitizens and to identify corrective actions 

needed to ensure maximum effectiveness of this process. 

Implemented 

SSA’s Inspector General has completed such a 

review and SSA revised guidance on verification 

of documents. 

2 Verification procedures:

Enhance the Modernized Enumeration System to prevent staff from issuing

SSNs without following required verification procedures.a

Not implemented 

SSA has yet to fund this effort. In the interim, 

however, SSA now requires staff to use a 

software tool that documents verification

procedures.b

3 Enumeration at Entry (EAE) procedures: 

Develop and implement a structured evaluation plan to assess the initial 

operation of the EAE initiative and identify SSA, State Department, and DHS 

business process changes needed to expand EAE to additional groups of 

noncitizens. 

Implemented 

SSA has conducted such an evaluation and 

identified several changes needed.c SSA and 

Department of State officials agreed to explore 

expansion of EAE to three additional 

nonimmigrant groups.d

4 Enumeration centers:

Evaluate the Brooklyn Social Security Card Center to assess the feasibility of 

expansion to other locations and interaction with SSA’s other initiatives to 

improve the integrity of SSN issuance to noncitizens. 

Implemented 

SSA completed such evaluations and opened an 

additional enumeration center in Las Vegas. 

5 Verification of birth records: 

Revise its requirement for verification of the birth records of U.S. citizens who 

apply for an SSN to require third-party verification of the birth records of 

children under age 1. 

Implemented 

Requirement put in place in accord with IRTPA. 

SSA now verifies birth records of all individuals 

seeking an original or replacement Social

Security card. 

6 Replacement cards:

Reassess SSA’s policies for issuing replacement Social Security cards and

develop options for deterring abuse in this area. 

Implemented 

Requirement put in place in accord with IRTPA. 

SSA now limits replacement cards to 3 annually 

and 10 over a lifetime. 

Source: GAO, Social Security Administration: Actions Taken to Strengthen Procedures for Issuing Social Security Numbers to 

Noncitizens, but Some Weaknesses Remain, GAO-04-12 (Washington, D.C.: Oct. 15, 2003) p. 24-25,and the Social Security 

Administration. 

a

SSA’s Modernized Enumeration System is an automated computer system for assigning SSNs. 

b

SSA is planning the recommended enhancements to this system as part of its efforts to redesign its

system for issuing SSNs, which is expected to take several years. This project has not yet been 

funded, however. In the interim, SSA requires staff to use a computer program that records the 

verification procedures staff use when processing an application for an SSN. 

c

Both SSA’s Office of Quality Assurance and Performance Assessment and SSA’s Office of Inspector 

General (IG) issued reports concerning the EAE process. The first of these reports noted higher error 

rates in the EAE program compared with the regular enumeration process and both made specific

recommendations for improving the EAE process. See SSA, Office of the Inspector General, Audit 

Report: Assessment of the Enumeration at Entry Process, A-08-04-14093, (Baltimore, Maryland: 

March 15, 2005) and SSA, Office of Quality Assurance and Performance Assessment, Office of 

Statistics and Special Area Studies, Study of the Enumeration at Entry Process: Final Report 

(Baltimore, Maryland: June 2005).

Page 11 GAO-06-253T 
d

State Department and SSA officials discussed the inclusion of nonimmigrants admitted with an E, H, 

or L classification. Noncitizens with an E classification include treaty traders, treaty investors, and 

treaty traders in a specialty occupation. Noncitizens with an H classification are workers in a specialty 

occupation (H-1B), registered nurses (H-1C), agricultural workers (H-2A), non-agrarian seasonal 

workers (H2B), and trainees (H-3). Noncitizens with an L classification are intracompany transferees.

To determine whether noncitizens are eligible for SSA benefits, SSA has 

implemented new procedures including some required by the SSPA. The 

SSPA tightened restrictions on payment of benefits to noncitizens who are 

not authorized to work. Generally both citizens and noncitizens in the U.S. 

accrue credits through paying Social Security payroll taxes. Noncitizens 

must also have authority to work in the U.S., and be lawfully present in the 

U.S. at the time they apply for benefits.20 Under some circumstances, 

unauthorized workers may receive benefits based on work credits they 

accrued while working without an immigration status permitting 

employment in the U.S., with a nonwork SSN or without a valid SSN 

during their work years. If noncitizens later receive a valid SSN and 

become eligible to work, they can show SSA their wage records and 

request credit for earnings from prior unauthorized work.21 If they 

establish legal immigration status, they may then receive benefit payments 

based on the earlier periods of unauthorized work. There are some 

exceptions for the lawful presence requirement, such as for workers 

covered under the terms of a totalization agreement. However, our work 

shows that SSA’s processes for entering into totalization agreements have 

been largely informal and do not mitigate potential risks. 

New Procedures for 

Awarding Benefits to 

Non-Citizens Protect 

Against Abuse and 

Improve Coordination 

with Other Countries 

SSPA Provisions Tighten 

Restrictions on Benefits to 

Unauthorized Workers 

The enactment of the SSPA in 2004 tightened the eligibility requirements 

for paying Social Security benefits to noncitizens. Before SSPA, 

noncitizens who worked in covered employment could in some 

circumstances eventually earn SSA benefits without obtaining a workauthorized SSN. If noncitizens had no SSN, but were entitled to benefits, 

 20SSA pays benefits to a claimant/beneficiary who is present in the U.S. and who is a 

U.S. citizen, U.S. national, or lawfully present alien as determined by DHS. This includes

claimants in the U.S. filing for benefits under a totalization agreement. 

21SSA maintains records of earnings reported under an invalid name or SSN that cannot be

assigned to a unique worker’s account in its Earnings Suspense File (ESF). SSA’s ESF

contained approximately 246 million wage items totaling about $463 billion in wages 

related to tax years 1937 through 2002 that could not be posted to individual earnings 

records. For more information, see GAO, Social Security: Better Coordination among 

Federal Agencies Could Reduce Unidentified Earnings Reports, GAO-05-154 (Washington,

D.C.: Feb. 4, 2005). 

Page 12 GAO-06-253T 
SSA would assign a nonwork SSN so their Social Security eligible earnings 

could be recorded. SSPA provides that in order to accrue benefits 

noncitizens with a SSN issued on or after January 1, 2004 must have 

authorization to work in the U.S. at the time that the SSN is assigned, or at

some later time.22 Without work authorization, noncitizens and their 

dependents or surviving family members cannot receive any benefits. See 

table 2 below. 

Table 2: Criteria for Payment of Social Security Benefits to Noncitizens Before and

After SSPA 

When a noncitizen worker was assigned an original SSN 

Before January 1, 2004 On or after January 1, 2004

Noncitizen must have an SSN (nonwork or workauthorized) to be eligible for benefits. Noncitizen must have a workauthorized SSN at the time he/she 

is assigned the SSN or later to be 

eligible for benefits.a

If the noncitizen had a nonwork SSN, Social 

Security eligible earnings could be recorded.

SSA no longer assigns a nonwork 

SSN for the purpose of recording 

earnings and paying benefits. 

Source: GAO analysis of SSPA. 

Note:Unless noncitizen workers meet these criteria, benefits based on their earnings records will not 

be paid, including old age, survivor, and disability benefits.

a

SSPA exempts noncitizens with DHS status as business visitors and crewmen on certain vessels or

aircraft. 

 22 The SSPA also allows business visitors or crewmen lawfully admitted temporarily into

the U.S. to earn quarters of coverage. A crewman includes those serving in a capacity 

required for normal operations on board a vessel or aircraft, who departs from the U.S. or

Guam with the vessel or aircraft on which he or she arrived.

Page 13 GAO-06-253T 
Nonetheless to receive benefits while in the U.S., noncitizens must be 

legally present in the U.S. under immigration law regardless of when they 

were first assigned an SSN.23 Previously if noncitizens accrued Social 

Security benefits and resided outside the U.S., they could under some 

circumstances receive those benefits without ever having been legally

present in the U.S.24 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 workauthorized SSN. Obtaining a work-authorized SSN requires both lawful 

presence in the U.S. and an immigration status permitting work in the U.S.

However, a noncitizen may receive benefits outside the U.S. if he or she is 

a citizen of a country that has a social insurance or pension system that 

pays benefits to eligible U.S. citizens residing outside that country or is a 

worker covered under a totalization agreement. A noncitizen not meeting 

any of these exceptions will have his or her benefits suspended beginning 

with the seventh month of absence.25

 23While there are few restrictions on payments once a worker becomes entitled to benefits, 

SSA prohibits the payment of benefits to certain individuals, including those residing in

certain countries, including Cambodia, Cuba, and North Korea; noncitizens residing in the 

U.S. unlawfully; and, in some cases, noncitizens residing outside the U.S. for more than 6

months at a time. Other individuals that may not be entitled to benefits include individuals 

confined to a jail, prison, or certain other public institutions for commission of a crime and

most individuals removed from the United States (i.e., deported). 

24This also applies in cases when a noncitizen resides in a country with a totalization 

agreement or a country that has a social insurance or pension system that pays benefits to 

eligible U.S. citizens residing outside that country. This includes Belgium, Canada, Mexico, 

Sweden, Switzerland, and the United Kingdom. 

25Dependents and survivors of noncitizens may also be able to receive benefits. For 

instance, those who lived in the U.S. for at least 5 years previously (lawfully or unlawfully), 

and had a family relationship with the worker during that time may qualify for benefits. 

There are similar exceptions for dependents and survivors such as those for the noncitizen 

worker listed above. 

Page 14 GAO-06-253T 
Totalization Agreements 

with Foreign Countries 

Can Be Mutually 

Beneficial, but Can 

Increase SSA Costs 

In general, totalization agreements between the U.S. and other countries 

provide mutually beneficial business, tax and other incentives to 

employers and employees, but the agreements also expose both countries 

to financial costs and risk. Our recent reports on totalization agreements 

identified two fundamental vulnerabilities in SSA’s existing procedures 

when entering into totalization agreements.26 First, our analysis

demonstrated that the agency’s actuarial estimates for the number of 

foreign citizens who would be affected by an agreement (and thus entitled 

to U.S. Social Security benefits) have overstated or understated the 

number, usually by more than 25 percent. As a result, depending on the 

size of the foreign population covered by an agreement, the actual cost to 

the Social Security trust fund from a given agreement could be greater or 

smaller than predicted. In response to our recommendation to improve its 

process for projecting costs to the trust fund from totalization agreements, 

SSA responded that it cannot eliminate all variations between projected 

costs and subsequent actual experience. 

Secondly, our work has shown that SSA’s processes for entering into these 

agreements have been largely informal and have not included specific 

steps to assess and mitigate potential risks to the U.S. Social Security 

system. For example, we found that SSA’s procedures for verifying critical 

information such as foreign citizens’ earnings, birth, and death data were 

insufficient to ensure the integrity of such information. Inaccurate or 

incomplete information could lead to improper payments from the Social 

Security trust fund. In response to our recommendations, SSA developed 

several new initiatives to identify risks associated with totalization 

agreements. For example, SSA developed a standardized questionnaire to 

help the agency identify and assess the reliability of earnings data in 

countries that may be considered for future totalization agreements. In 

addition, SSA is conducting numerous “vulnerability assessments” to 

detect potential problems with the accuracy of foreign countries’ 

documents. SSA is also exploring a more systematic approach for 

independently verifying foreign countries’ data, such as the use of 

computer matches. (For a summary of the status of recommendations, see 

table 3 below.) 

 26GAO, Social Security Administration: A More Formal Approach Could Enhance SSA’s

Ability to Develop and Manage Totalization Agreements, GAO-05-250 (Washington, D.C.: 

Feb. 28, 2005) and Proposed Totalization Agreement With Mexico Presents Unique 

Challenges, GAO-03-993 (Washington, D.C.: Sept. 30, 2003). 

Page 15 GAO-06-253T 
Table 3: Status of February 2005 GAO Recommendations to the Commissioner of Social Security Concerning Totalization

Agreements 

GAO recommendation Status

1 Standardized protocols:

Develop a standardized set of protocols that integrate and 

formalize the various initiatives for verifying foreign 

countries’ data when negotiating future agreements. 

Not implemented. 

Although SSA has not developed a standard set of formal 

protocols, it has developed a standardized questionnaire to help 

the agency identify and assess the reliability of earnings data in 

countries that may be considered for future totalization 

agreements. 

2 Verifying eligibility:

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 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. 

Not implemented. 

SSA is, however, exploring a more systematic approach for 

independently verifying foreign countries’ data, such as the use of 

computer matches. 

Source: GAO, Social Security Administration: A More Formal Approach Could Enhance SSA’s Ability to Develop and Manage

Totalization Agreements, GAO-05-250 (Washington, D.C.: Feb. 28, 2005), p. 16, and SSA.

Laws and policies are in place to ensure that SSA treats noncitizens fairly 

in the issuance of SSNs, the provision of benefits, and in cases where they 

are covered under the terms of totalization agreements. Recent legislation 

and revisions to SSA policies represent some progress in these areas. 

Concluding 

Observations 

While SSA is making progress in improving the program’s integrity by 

strengthening its procedures for verifying documents and coordinating 

with other agencies and foreign governments, opportunities remain for 

additional progress. SSA plans further enhancements to the Enumeration 

at Entry program in order to protect against errors, fraud and abuse. In 

addition, a more systematic approach to verifying data from other 

countries with which we have totalization agreements can help ensure 

proper payments of benefits and prompt notice of the death of 

beneficiaries. SSA will, however, continue to face challenges in its dealings 

with noncitizens. 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. 

Page 16 GAO-06-253T 
Mr. Chairman and Members of the Subcommittee, this concludes my 

prepared statement. I’d be happy to answer any questions you may have. 

For further information regarding this testimony, please contact 

Barbara D. Bovbjerg, Director, Education, Workforce, and Income 

Security Issues at (202) 512-7215. Blake L. Ainsworth, Assistant Director; 

Alicia Puente Cackley, Assistant Director; Benjamin P. Pfeiffer; 

Anna H. Bonelli; Jeremy D. Cox; Jacqueline Harpp; Nyree M. Ryder; 

Daniel A. Schwimer; and Paul C. Wright also contributed to this report. 

GAO Contacts and 

Staff 

Acknowledgements 

Page 17 GAO-06-253T 
Page 18 GAO-06-253T 

Appendix I: Totalization Agreements 

Table 4: Existing Totalization Agreements between the US and Other Countries and 

the Year the Original Agreements Became Effective 

 Country Effective Year of Agreement 

Italy 1978

Germany 1979

Switzerland 1980

Belgium 1984

Canada 1984

Norway 1984

United Kingdom 1985 

Sweden 1987

France 1988

Spain 1988

Portugal 1989

Netherlands 1990

Austria 1991 

Finland 1992

Ireland 1993

Luxembourg 1993

Greece 1994

Chile 2001

South Korea 2001 

Australia 2002

Japan 2005

Source: SSA 

Note: In 2004, the U.S. and Mexico signed a totalization agreement, which must be sent to and 

reviewed by legislative bodies in both countries before it becomes effective. Discussions are 

underway concerning possible totalization agreements with Denmark and the Czech Republic. 

(130537) 
This is a work of the U.S. government and is not subject to copyright protection in the 

United States. It may be reproduced and distributed in its entirety without further 

permission from GAO. However, because this work may contain copyrighted images or 

other material, permission from the copyright holder may be necessary if you wish to 

reproduce this material separately. 
GAO’s Mission The Government Accountability Office, the audit, evaluation and 

investigative arm of Congress, exists to support Congress in meeting its 

constitutional responsibilities and to help improve the performance and 

accountability of the federal government for the American people. GAO 

examines the use of public funds; evaluates federal programs and policies; 

and provides analyses, recommendations, and other assistance to help

Congress make informed oversight, policy, and funding decisions. GAO’s 

commitment to good government is reflected in its core values of 

accountability, integrity, and reliability. 

The fastest and easiest way to obtain copies of GAO documents at no cost

is through GAO’s Web site (www.gao.gov). Each weekday, GAO posts 

newly released reports, testimony, and correspondence on its Web site. To

have GAO e-mail you a list of newly posted products every afternoon, go 

to www.gao.gov and select “Subscribe to Updates.” 

The first copy of each printed report is free. Additional copies are $2 each. 

A check or money order should be made out to the Superintendent of 

Documents. GAO also accepts VISA and Mastercard. Orders for 100 or 

more copies mailed to a single address are discounted 25 percent. Orders 

should be sent to: 

U.S. Government Accountability Office 

441 G Street NW, Room LM 

Washington, D.C. 20548 

To order by Phone: Voice: (202) 512-6000 

TDD: (202) 512-2537 

Fax: (202) 512-6061 

Contact: 

Web site: www.gao.gov/fraudnet/fraudnet.htm

E-mail: fraudnet@gao.gov

Automated answering system: (800) 424-5454 or (202) 512-7470 

Gloria Jarmon, Managing Director, JarmonG@gao.gov (202) 512-4400 

U.S. Government Accountability Office, 441 G Street NW, Room 7125 

Washington, D.C. 20548 

Paul Anderson, Managing Director, AndersonP1@gao.gov (202) 512-4800

U.S. Government Accountability Office, 441 G Street NW, Room 7149 

Washington, D.C. 20548 

Obtaining Copies of 

GAO Reports and 

Testimony

Order by Mail or Phone 

To Report Fraud,

Waste, and Abuse in 

Federal Programs 

Congressional 

Relations 

Public Affairs 

PRINTED ON RECYCLED PAPER