Since the late 1970s, the United States has established a network of bilateral social security agreements that coordinate the U.S. social security program with similar programs in other countries. This article provides a brief overview of the agreements and should be of particular interest to multinationals and people who work abroad during their careers. Self-employed workers who, in the absence of the agreement, would have to pay social security contributions to both countries are subject to special rules (see table below). 2 An exception to this rule is the agreement with Italy, which allows some transferred workers to choose the social security system to which they are subject. No other U.S. totalization agreement contains a similar rule. 12 Meanwhile, the United States had also reached an agreement with West Germany, which was also on hold until the 1977 amendments were adopted. The enabling status in the 1977 amendments is Section 233 of the Social Security Act (42 U.C No. 433), which allows the President to enter into bilateral totalization agreements with countries with a social security system similar to that of the United States. Section 233 defines totalization agreements as executive agreements of Congress, which have essentially the same legal force as treaties, but do not require full ratification by the Senate.
In order for an agreement to enter into force, the President must pass it on to Congress, where he must rest for 60 days in front of the two houses, during which one or both houses meet; this period must pass without one of the two houses adopting a resolution of disapproval. The agreements also have a positive effect on the profitability and competitive position of companies operating abroad by reducing their business costs abroad. Companies with staff stationed abroad are encouraged to use these agreements to reduce their tax burden. If you have any questions about international social security agreements, please contact the Office of International Social Security Programs at 410-965-3322 or 410-965-7306. However, do not call these numbers if you want to inquire about a right to an individual benefit. The agreement, which came into force on December 12, 1979, has many benefits for retirees who have worked in both Germany and the United States. For example, contributions from both countries can be combined to calculate your pension. If, in certain circumstances, you do not meet the minimum contribution period required in Germany, you can add your contribution periods to U.S.
Social Security, which may entitle you to a pension. The provisions to eliminate dual coverage for workers are similar in all U.S. agreements. Each of them establishes a basic rule regarding the location of the employment of a workforce. Under this basic “territorial rule,” a worker who would otherwise be covered by both the United States and a foreign regime is subject exclusively to the coverage laws of the country in which he or she works. The single-family home rule in U.S. agreements generally applies to workers whose interventions in the host country are expected to last 5 years or less. The 5-year limit for leave for exempt workers is much longer than the limit normally set by agreements in other countries. Agreements to coordinate social protection across national borders have been commonplace in Western Europe for decades. This is followed by a list of the agreements reached by the United States and the effective date of each.
Some of these agreements were then revised; The date indicated is the date on which the original agreement came into force. Although the agreement between the United States and Germany allows the Social Security Administration to count your German loans to help you qualify for the United States.