The Social Security Agreement between Japan and the United States: Everything You Need to Know
Are you a US citizen living and working in Japan, or a Japanese citizen living and working in the US? If so, you may be wondering about how the social security systems of both countries work, and whether you will be entitled to benefits from both.
Fortunately, there is a Social Security Agreement in place between Japan and the United States, which can help you navigate through these questions.
What is the Social Security Agreement?
The Social Security Agreement, also known as the Totalization Agreement, is a treaty between two countries that coordinates their social security systems. The agreement aims to eliminate dual social security coverage and ensure that workers who move between the two countries are protected under one system.
The agreement between Japan and the United States was signed in 2005 and came into effect in 2008. It eliminates the need for workers to pay social security taxes to both countries, and allows them to combine their work credits earned in each country to qualify for benefits.
Who is covered by the agreement?
The agreement covers workers who are either US citizens working in Japan, or Japanese citizens working in the US. It also covers dependents and survivors of these workers.
To be eligible for the benefits under the agreement, you must have earned a minimum number of work credits in both countries. The exact number of credits required depends on your age and the type of benefit you are applying for.
How does the agreement work?
Under the agreement, workers who are covered by one country`s social security system can transfer their work credits to the other country`s system. This means that you can combine your work credits earned in Japan and the US to meet the eligibility requirements for benefits in either country.
For example, if you have earned 10 work credits in Japan and 20 work credits in the US, you can combine them to meet the minimum requirement of 30 work credits to qualify for benefits in either country.
It`s important to note that the agreement does not increase the amount of benefits you are entitled to, but rather ensures that you are not penalized for working in both countries.
What benefits are covered under the agreement?
The Social Security Agreement covers a range of benefits, including retirement, disability, and survivor benefits. The exact amount of benefits you are entitled to will depend on your work history and other factors.
If you are eligible for benefits under the agreement, you can apply for them through either the Japanese or US social security administration, depending on your country of residence.
Conclusion
The Social Security Agreement between Japan and the United States can be a great source of relief for workers who are moving between the two countries. It helps to eliminate the need for dual social security coverage, and allows workers to combine their work credits earned in both countries to qualify for benefits.
If you are a US citizen living and working in Japan, or a Japanese citizen living and working in the US, it`s important to understand the details of the Social Security Agreement. By doing so, you can ensure that you are taking advantage of the benefits you are entitled to under the agreement.