Below is a diagram that shows how you are entitled to the different benefits without relying on the tabulation agreement. This does not include eligibility based on spousal or disability benefits, which may be an option in some cases. For a list of countries with which the United States currently has tabulation agreements and copies of those agreements, see U.S. International Social Security Agreements. The Canadian government`s international social security agreements cover only retirement benefits and the Canada Pension Plan. If you are contributing or have contributed to the QPP but not to the CPP, please consult the Quebec Pension Plan. The United States has agreements with several countries, called tabulation agreements, to avoid double taxation of income in terms of social security taxes. These agreements should be considered in determining whether a foreigner is subject to U.S. Social Security/Medicare tax or whether a U.S. foreigner is subject to U.S. Social Security tax.
Citizens or resident foreigners are subject to the social security taxes of a foreign country. If you have questions about international social security agreements, call the Social Security Administration`s Office of International Programs at 410-965-3322 or 410-965-7306. However, please do not call these numbers if you wish to inquire about a claim for individual benefits. So where are you? Are you caught in the middle of this unique problem? You are not alone in your search for a way forward. As regulations and agreements are constantly evolving, it is important to consider your options through the lens of current cross-border agreements. For more information, please contact Cardinal Point. OAS-No determination. CPP-Minimum contributory requirements equal to those of other survivor benefits. One-time payment equal to six times the deceased employee`s monthly retirement pension up to a maximum of C$2,500. QPP-Same minimum contributory requirements as for other survivor benefits. One-time payment of $2,500 CAD.
Let`s review the eligibility criteria for these three pension plans: CPP and SS are based on the income balance sheet. The difference is that the minimum eligibility criteria of the SS require ten years of service, while a CPP benefit requires only a one-time payment in the pension to become eligible. The OAS criteria follow a different qualification path based on residency rules compared to employment history, particularly time spent in Canada since the age of 18. A full OAS benefit is paid once the person has acquired 40 years of Canadian residence since the age of 18. A partial benefit may be paid if the applicant has at least 10 years of Canadian residence (assuming Canadian residency at the beginning of payments) or 20 years of Canadian residence (assuming U.S. residency at the beginning of the payment). For more details on the CPP, OAS and SS, please see: « Cross-Border Retirement Income: Canada Pension Plan, Canadian Old Age Security, U.S. Social Security and Windfall Elimination Provision ».
So the question remains; What happens if I don`t meet these eligibility requirements? For the United States, the agreement includes Social Security taxes (including the U.S. medicare portion) and Social Security survivor retirement, disability, and insurance benefits. It does not cover benefits from the U.S. Medicare program or the Supplemental Security Income program. For Canada, the agreement applies to the Old Age Security Program and the Canada Pension Plan. The agreement with Québec applies to the Québec Pension Plan. An additional benefit called the Guaranteed Income Supplement (GIS) is paid to OAS beneficiaries living in Canada who have little or no income beyond the OAS benefit. The GIS is payable outside of Canada for only 6 months after the month of departure from Canada. CPP workers can receive a full or reduced pension as early as age 60. Only one contribution (1 year of coverage) is required. CPP type QPP.
Although each country can count your credits in the other country, your credits are not actually transferred from one country to another. They remain on file in the country where you earned them and can also be used to qualify for benefits. A certificate of coverage issued by one country serves as proof of exemption from social security taxes on the same income in the other country. In general, you only need a certificate if you work in the other country for more than 183 days in a calendar year. If you are in the other country for 183 days or less, no certificate is required unless the other country asks you to obtain one. If you are not eligible for a pension plan because of your years of residence in Canada, Canada will consider your periods of contribution to the U.S. Retirement Program after age 18 and after January 1, 1952 as periods of residence in Canada. Under the agreement, Canada will consider your U.S. Social Security credits accrued after 1951 and after age 18, as well as periods of residence in Canada after 1951 and after age 18, to meet OAS residency requirements.
However, to be eligible for your U.S. credit count, you must have lived in Canada for at least one year after 1951 and after the age of 18. Unlike Social Security and the CPP, the OAS is not based on wages earned or the amount you paid into the system. The OAS is available to Canadian citizens who have lived in Canada for some time and earn less than a certain amount of money. In 2019, the maximum OAS benefit is $607 and your individual income must be less than $125,937. .