Model Provisions For A Bilateral Social Security Agreement

The Ibero-American Multilateral Agreement on Social Security is the latest multilateral agreement to enter into force. It was signed by two European countries and 12 Latin American countries, of which 11 have ratified the Convention and three have signed the Administrative Agreements. The operations of the agreements are supervised by a technical management committee. The Convention replaces a network of social security agreements between Latin American countries.  2 An exception to this rule is the agreement concluded with Italy, which allows certain transferred workers to choose the social security scheme in which they are covered. No other U.S. tabination agreement contains a similar rule. The Convention is consistent with the five objectives of the social security agreements and covers all workers, members of their families and their survivors, nationals of a Contracting Party to the Convention and subject or having been subject to the social security scheme of one of the Parties. Benefits in cash and in kind are included in the Convention in the event of old age, invalidity, death of a family member, accident at work, maternity or sickness, including family allowances, granted under all statutory social security schemes. In general, persons are not obliged to take measures with regard to aggregation benefits under an agreement until they are prepared to apply for a pension, survivor`s or invalidity. A person wishing to claim benefits under a tabling agreement may do so with any social security service in the United States or abroad.

The goal of all U.S. totalization agreements is to eliminate dual social and tax coverage while maintaining coverage for as many workers as possible under the regime of the country where they are probably most attached, both at work and after retirement. Each agreement aims to achieve this objective through a set of objective rules. This problem is particularly acute for U.S. workers, given that the Federal Insurance Contributions Act (FICA) and the Employment Contributions Act (SECA) require more comprehensive coverage for U.S. citizens working abroad than comparable social security programs in most other countries (McKinnon 2012). Although most countries only tax their own nationals for work done in their own territory, the United States imposes taxes on a wide range of economic activities carried out by the United States. . . .