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Reciprocal social security agreements between countries
Old 07-26-2012, 02:39 PM   #1
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Reciprocal social security agreements between countries

Just had this interesting article/bulletin sent to me by Revenue Canada, for being one of their favorite suckers (oops.. I mean treasured small business employer)

Canada Pension Plan and Employment Insurance Explained – Canada’s international social security agreements

It describes the reciprocal agreements Canada has in place with a LOT of other countries when it comes to Social Security schemes and how working in another country can still qualify you for time served in your home country scheme.

Might be of interest to some who have been asking lately in the Dual Citizenship threads, moving overseas threads... etc, ad infinitum

Cheers.
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Old 07-27-2012, 03:38 PM   #2
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Very good information; thanks.

I will qualify for full Social Security benefits in the US, having worked there most of my adult life. I immigrated to Canada in 2007 at age 50 and have been working here (part-time) since 2008. I may work another 5 years or so in Canada before I take the "semi-" qualifier off my retirement. From the CRA info, it looks like drawing benefits from one program won't reduce what you get from the other, assuming you are entitled to something from each.
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Old 07-27-2012, 11:40 PM   #3
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Quote:
Originally Posted by Red_y View Post
Very good information; thanks.

I will qualify for full Social Security benefits in the US, having worked there most of my adult life. I immigrated to Canada in 2007 at age 50 and have been working here (part-time) since 2008. I may work another 5 years or so in Canada before I take the "semi-" qualifier off my retirement. From the CRA info, it looks like drawing benefits from one program won't reduce what you get from the other, assuming you are entitled to something from each.
If you get a pension from non-SS wages your US SS will be reduced under the Windfall Elimination Program.
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Old 07-28-2012, 02:42 PM   #4
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For the US SS pension, deduction of benefits from Canada will depend on which Canadian pension you are discussing if you are using credits from one system to qualify under the other: OAS, CPP, or QPP.

From the US SSA site:
"If you qualify for Social Security benefits from the United States based only on U.S. credits and a CPP/QPP benefit from Canada, the amount of your U.S. benefit will be reduced.......Receipt of a Canadian Old-Age Security pension, which is based on residence in Canada, will not affect the way your (US SS) benefit is figured. (my emphasis)
OAS is not employment based.

Description of the U.S.-Canadian Social Security Agreement

It would not be surprising if there is no reduction to the Canadian pension using the same circumstances. The US is the only country I've found that applies a 'WEP' type modifier (but there may be others?). Some countries offer a tax reduction on pensions from another country (such as from the US) received in the foreign country.
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Old 07-28-2012, 06:37 PM   #5
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For the US SS pension, deduction of benefits from Canada will depend on which Canadian pension you are discussing if you are using credits from one system to qualify under the other: OAS, CPP, or QPP.

...The US is the only country I've found that applies a 'WEP' type modifier (but there may be others?). Some countries offer a tax reduction on pensions from another country (such as from the US) received in the foreign country.
I was referring to CPP and I actually don't need any CPP credits to qualify for Social Security benefits. My work history in the US is sufficient.

Based on the helpful link provided, I looked at how my Social Security benefits will be impacted--since I only have 28 years of "substantial earnings", I'll get 80% (instead of 90%) of the first slice of my average monthly earnings. Not a big impact, but I agree, it's a bit of a stretch to call some miniscule Canada Pension Plan benefit a "windfall".

But at least Old Age Security will not be affected by collecting Social Security and vice versa. For people in Canada who qualify for the full amount, it's a nice extra $500 a month (fully taxable). I'll get some pro-rated amount based on my number of years resident in Canada before age 65.
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