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_ Romania-US agreement on pension right of those working in other state's territory
Romania-US agreement on pension right of those working in other state's territory
According to the document signed by US Ambassador to Romania Kathleen Kavalec and Romanian Minister of Labour Marius Budai, it will be possible to capitalise on the periods worked both in Romania and in the USA, in order to open the right to a pension on the principle of totalisation, with each country granting a proportional pension according to the periods of insurance completed in its own system.
The Agreement also includes provisions on the export of pensions, with the exception of special non-contributory cash benefits, in the case of Romania, to facilitate the mobility of pensioners from the two countries and to maintain access to pension rights in payment.
According to the source, the document also refers to the establishment of the applicable legislation to avoid double social insurance contributions of a worker or the risk that he/she is not subject to any social insurance scheme.
With regard to the posting of workers in the territory of the two countries, the new agreement provides for their reciprocal exemption from the payment of social security contributions in the national system of the country to which they are posted and clarifies the administrative procedures in this respect, in order to protect both workers and employers.
The Agreement in the area of social security covers persons who are or have been subject to the laws of one or both states, but also those whose rights derive, under the applicable laws, from them.
The relevant ministry points out that, once signed, the document between Romania and the US will be ratified under law by the Romanian Parliament. AGERPRES
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