Social Security Agreement Helps People Who Have Lived or Worked in Canada and Romania

"Canada negotiates agreements with other countries that offer programs comparable to our Old Age Security program and Canada Pension Plan," said Minister Finley. "Agreements such as this one will help provide seniors with additional income in retirement. This agreement with Romania is also an important step toward strengthening the relationship and cooperation between our two countries."

Once in force, this agreement will make it easier for people who have lived and worked in both Romania and Canada to qualify for public pension benefits from either or both countries. Through this agreement, the Government of Canada can coordinate Canada's Old Age Security program and the Canada Pension Plan with the comparable program in Romania.

The Agreement will do the following:

- reduce restrictions that may prevent Canadians from receiving pension benefits from Romania;

- reduce restrictions on the payment of Canadian benefits to people residing in Romania;

- permit continuity of social security coverage when Canadians are sent to work temporarily in Romania; and

- make it easier to become eligible for benefits by adding together periods of social security coverage in both countries.

The Agreement will also result in savings for Canadian companies operating in Romania. Canadian companies will continue to make Canada Pension Plan contributions for their Canadian employees sent to work in Romania, and will be exempt from making Romanian social security contributions. This translates directly into enhanced competitiveness for Canadian companies operating in Romania. The same is true for Romanian companies operating in Canada.

The Agreement between Canada and Romania will enter into force once both countries have completed their legal procedures, which is expected in the second half of 2010. With the signing of this agreement, Canada has concluded 53 international social security agreements, 50 of which are in force. Agreements have also been signed with Morocco and Macedonia, but are not yet in force.

BACKGROUNDER

Canada has concluded 53 international social security agreements. Agreements are in force with the following 50 countries:

Antigua and Barbuda      Hungary                              Philippines
Australia                Iceland                                   Poland
Austria                  Ireland                                 Portugal
Barbados                  Israel                      St. Kitts and Nevis
Belgium                    Italy                              Saint Lucia
Chile                    Jamaica         Saint Vincent and the Grenadines
Croatia                    Japan                          Slovak Republic
Cyprus           Jersey/Guernsey                                 Slovenia
Czech Republic             Korea                                    Spain
Denmark                   Latvia                                   Sweden
Dominica               Lithuania                              Switzerland
Estonia               Luxembourg                      Trinidad and Tobago
Finland                    Malta                                   Turkey
France                    Mexico                           United Kingdom
Germany              Netherlands                            United States
Greece               New Zealand                                  Uruguay
Grenada                   Norway

Agreements have also been signed with Romania, Macedonia and Morocco, but are not yet in force.

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