Brent Jackson and Scott Cash are at the Office of Data Exchange and International Agreements, Office of Data Exchange, Policy Publications and International Negotiations, Office of Retirement and Disability Policy, Social Security Administration. Thank you for your interest in PwC`s 2020 Edition of Doing Business in Usa. We will contact you within 3 working days. Credits acquired in the country with a totalization agreement may be transferred to another part of the agreement (i.e. from Great Britain to the United States or vice versa) if a dual resident does not have a sufficient number of credits in one country to be eligible. While they are transferred to another social security system, these credits do not reduce the number of credits accumulated in another country, so you can collect social security benefits in both plans after retirement age. Other features of U.S. law increase the likelihood that foreign workers in the United States will also face dual coverage. U.S. law provides mandatory social security for benefits paid as workers in the United States, regardless of the nationality or country of residence of the worker or employer, regardless of the length of residence of the worker in the United States. Unlike many other countries, the United States generally does not provide a guarantee exemption for non-resident foreign workers or workers who have been sent to work for a short period of time within their borders. This is why most foreign workers in the United States are covered by the U.S. program.
To qualify for benefits under the U.S. Social Security program, a worker must have earned enough work credits, known as insurance quarters, to meet the “insurance status requirements” specified. For example, a worker who turns 62 in 1991 or later generally needs 40 calendar terms to be insured for old age pensions. As part of a totalization agreement, SSA accounts for periods of coverage acquired by the worker under the social security program of a contracting country when a worker has some U.S. insurance coverage but is not sufficient to qualify for benefits. Similarly, a country that is a party to an agreement with the United States will take into account a worker`s coverage under the United States.