On April 3, 2020, the German-American agreement on social security was signed. This agreement is designed to enhance the coordination of social security benefits for individuals who work and live in both Germany and the United States. This agreement replaces the previous agreement made in 1979 and will go into effect on December 1, 2020.
The agreement is important because it ensures that individuals who work in both countries are not subject to double taxation on their social security benefits. It also helps to ensure that individuals receive the appropriate social security benefits based on their work history in both countries.
One of the key benefits of the agreement is that it will make it easier for individuals to qualify for social security benefits in both countries. For example, if an individual has worked in both Germany and the United States, they may be able to combine their work credits from both countries to qualify for social security benefits in both places.
The agreement also provides for the payment of benefits to eligible individuals who are living in the other country. For example, if a U.S. citizen is living in Germany and is eligible for social security benefits, they will be able to receive those benefits in Germany.
In addition to these benefits, the agreement also includes provisions that allow for the transfer of pension rights between the two countries. This means that if an individual has worked in both countries and has accrued pension rights in both places, they may be able to transfer those rights between the two countries.
Overall, the German-American agreement on social security is an important development that will benefit individuals who work and live in both Germany and the United States. The agreement will provide for greater coordination of social security benefits, reduce the risk of double taxation, and make it easier for individuals to qualify for benefits in both countries.