Ssa International Agreements
Since the 1970s, U.S. negotiators have entered into bilateral agreements with 28 major trading partners to coordinate social security coverage and social benefits for people living and working in more than one country. They are called „totalization agreements“ and are similar in the function and structure of contracts and are legally considered to be executive agreements of Congress concluded in accordance with the law. The agreements have three main objectives: the elimination of double taxation of income, the granting of protection to workers who have shared their professional careers between the United States and another country, and the full payment of benefits to residents of both countries. This article briefly describes totalization agreements, tells their stories and discusses proposals to modernize and improve these agreements. International social security agreements, often referred to as „totalization agreements,“ have two main objectives. First, they remove the double taxation of social security, the situation that occurs when a worker from one country works in another country and is required to pay social security taxes to the two countries with the same incomes. Second, the agreements help fill gaps in benefit protection for workers who have shared their careers between the United States and another country. The most notable exception to the territorial rule is called a detached work rule. Under this rule, a worker whose employer requires his temporary relocation from one country to another to work for the same company continues to pay social security contributions and retains insurance coverage exclusively in the country from which he has moved.1 According to almost all totalization agreements, the duration of such a transfer cannot be expected at the time of the transfer. to exceed 5 years. This rule ensures that workers who work only temporarily in the other country continue to work in their home country, which remains the country of their greatest economic link.2 On the other hand, workers who change countries permanently are insured under the country of destination regime.
By mutual agreement, the two countries can agree to extend the five-year period for temporary missions abroad on a case-by-case basis, but extensions beyond two more years are rare. A non-resident non-resident beneficiary who has been absent from the United States for six months or more consecutively must also have been in the United States for a period of five years during which he maintained his relationship with the worker. For example, a non-resident alien who is entitled to a spousal allowance and has been absent from the United States for six consecutive months may be a citizen of a country that pays unlimited benefits to U.S. citizens outside that country`s borders.