The United States and South Korea signed a Totalization Agreement in 2001 to improve the social security systems for workers who divide their careers between the two countries. The agreement allows for the coordination of social security benefits for workers who have contributed to both the US and Korean social security systems.
Under the agreement, workers are able to combine their working periods in both countries to meet the eligibility requirements for retirement, disability, and survivor benefits. This means that workers who have worked in both countries can receive benefits from both social security systems. The agreement also aims to eliminate double taxation on social security contributions.
The Totalization Agreement is particularly important for individuals who work in one country for only a short time but still contribute to the social security system. Without the agreement, these workers would often lose out on the benefits they have paid for due to strict eligibility requirements.
Furthermore, the agreement provides relief for employers who would otherwise have to contribute to both the US and Korean social security systems for the same worker. The agreement ensures that workers and employers only need to contribute to the social security system in the country where the work is being performed.
The Totalization Agreement between the US and Korea has been successful in improving the coordination of benefits for workers who divide their careers between the two countries. The agreement benefits both individuals and employers, as it simplifies the social security system and reduces the financial burden of contributing to multiple systems.
Overall, the Totalization Agreement between the US and Korea is an essential component in ensuring fair and just social security systems for international workers. It is an example of successful collaboration between two countries to make the lives of its citizens better, and it is a model that other countries should consider adopting.
