A loophole in state law is allowing elderly legal immigrants — including some who just got here — to draw benefits from Colorado’s archaically named Old Age Pension fund at the same level as other residents.
The result is that immigrants are gobbling up an overwhelming share of the taxpayer-supported program.
And the situation has been exacerbated as an unintended consequence of the $787 billion federal program meant to stimulate the economy, according to The Post’s Tim Hoover.
Lawmakers should correct the situation when the General Assembly reconvenes next year. Some of them wanted to do just that last year, but were thwarted by a competing desire to get as much of the stimulus money as possible for Medicaid.
To qualify for the money, the state had to keep Medicaid spending levels current. Because the majority of those who qualify for the Old Age Pension benefits also qualify for Medicaid support, the state felt its hands were tied.
Hoover reports that the way state law is written, thousands of legal immigrants whose families said they would take care of them are instead receiving help from Colorado taxpayers. Colorado law started allowing legal immigrants access to the pension fund in 1936, but the law says the income of the legal immigrant’s family sponsor can’t be considered.
Now, thousands of legal immigrants who were supposed to have been under the care of family members are instead drawing from the pension fund. That can mean up to nearly $700 a month in cash benefits, as well as some medical care.
The program’s total cash benefits add up to more than $80 million, and legal immigrants are taking in $53 million of that amount.
Federal law requires family members who sponsor immigrants to support them financially until they become citizens, have worked for 10 years or have otherwise found ways to care for themselves. Federal law doesn’t allow for benefits until the immigrants have been here for at least five years, or until they have become citizens.
Had state lawmakers closed the loophole last year, they could have saved $31 million, which would have come in handy as the state grapples with enormous budget deficits.
Meanwhile, the loophole is being exploited with gusto. Michael Whalen, a former caseworker for Denver’s Department of Human Services, said it isn’t uncommon for recently arrived immigrants to apply, even though they have relatives who have agreed to support them.
“And who can blame them?” he said. “No one’s minding the store.”
State Rep. Jack Pommer, D-Boulder, and Sen. Abel Tapia, D-Pueblo, sponsored legislation last year to close the loophole. Pommer is right to call the loophole “outrageous,” and Coloradans ought to hope he is successful closing it next year.
