by Janet Murguia
Hilaria Vallejo was shocked to learn that after 35 years of picking tomatoes in farms across the southern United States, she was not eligible to receive Social Security benefits. Born in southern Texas, the 77-yearold was unaware that her employers did not report her wages or withhold Social Security taxes. “At the time, we were just happy to be getting paid, but we didn’t know what they were doing,” she said. “They took advantage of us.”
With an amputated leg—the result of a cancerous tumor and an aging body—Hilaria cannot work to sustain herself. Denied the Social Security benefits she should have earned, she depends on the help she receives from her five children to pay her bills and buy groceries. “I’m an American citizen,” she said. “I worked many years in this country’s fields.”
As the economy heads toward recession, Hilaria’s financial stability is at even greater risk. Most elderly Americans and people with disabilities can find at least some relief in Social Security, the federal insurance program to which workers contribute through mandatory payroll taxes and from which they or their family members collect benefits in the event of retirement, disability or death. During times of economic hardship, Social Security benefits become critical to meeting immediate needs.
Unfortunetely, Hilaria’s situation is a reality for many members of our most vulnerable communities, people who face economic insecurity because they lack this social insurance. Almost 30 percent of Latinos age 65 or older do not receive Social Security benefits, compared to only 10 percent of the general population of this age, and more than half of elderly Latinos rely on Social Security for 90 percent of their income. Without Social Security, nearly two-thirds of Latinos over the age of 65 would live in poverty.
Low-wage employment, lack of wage reporting, and errors in employment classification are among the factors that contribute to the gap in Social Security coverage. Workers earning minimum to low wages are less likely to be covered, putting them at risk of bearing a heavy financial burden after retirement or following a debilitating medical emergency. In addition, employers like Hilaria’s, who withhold Social Security taxes or fail to report wages, rob workers of these crucial benefits. Many employers also misclassify workers as independent contractors who need to file their own.. Unaware that the Social Security tax is not automatically withheld from their wages, these employees unknowingly forfeit their benefits.
August marks the 73rd anniversary of President Franklin D. Roosevelt’s signing of the Social Security Act into law Many Latino workers have not benefited, despite the contributions that they have made to the U.S. economy before and after the bill became law. This disparity in coverage affects our nation’s economy as a whole.
As the Baby Boomers retire, the number of working age adults who contribute to Social Security significantly decreases. As a younger population and an important growing part of the workforce, Latinos will play a large role in paying for the retirement of the Baby Boomers.
Undocumented immigrants, often targeted in the media as “freeloaders,” also significantly contribute to Social Security. The Social Security Administration Chief Actuary estimates that 75°/0 of undocumented workers, most of whom will never see any Social Security benefits, pay Social Security taxes.
They will contribute as much as $7 billion annually to the Social Security trust fund.
In an effort to inform the discussion on these disparities, the National Council of La Raza (NCLR)—the largest national Hispanic civil rights and advocacy organization in the United States—has published Domestic Workers Working Hard to Sustain American Families, Compromising Their Social Security and The Social Security Program and Reform. A Latino Perspective. Both are available at www.ncir.org.
Conducting important research and releasing publications such as these is just the first step in addressing the critical needs of the older members of our community.
They, like all workers, have made invaluable contributions to our country. It is our obligation to ensure that their basic needs are met.
(Janet Murguía is president of the National Council of La Raza.)
