Canada and Japan sign Social Security Agreement

Canada and Japan sign Social Security Agreement

OTTAWA — The Honourable Diane Finley, Minister of Human Resources and Social Development, announced today the signing of an international Social Security Agreement with Japan . The agreement was signed in Tokyo , Japan by His Excellency, Joseph Caron, Canada ’s Ambassador to Japan , on behalf of the Government of Canada.

Mr. Taro Aso, Minister of Foreign Affairs, signed the agreement on behalf of the Government of Japan.

The agreement signed today is good news for Canadian companies operating in Japan who were previously paying significant pension contributions for Canadians workers sent to Japan . These workers will now be able to continue paying into the Canada Pension Plan while posted abroad. It will also help to protect the pension rights of citizens of both countries.

The agreement represents an important achievement under the Canada-Japan Economic Framework, an innovative initiative developed jointly in 2005. The Framework is designed to help strengthen bilateral trade and investment, as well as economic cooperation between the two countries.

The conclusion of the Agreement between Canada and Japan on Social Security represents a milestone as it is Canada ’s 50 th social security agreement concluded with other countries.

“Canada is committed to entering into 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 Japan is also an important step toward strengthening the relationship and cooperation between our two countries.”

Social security agreements between Canada and other countries help people who have lived or worked in both Canada and another country to qualify for old age, retirement, disability, or survivor benefits from both countries.

The agreement applies to Canada ’s Old Age Security program and Canada Pension Plan and the comparable Japanese pension program, which provides old age, disability, and survivor benefits.

Normally, to qualify for a benefit under the Japanese pension program, a person must have contributed to the program for a minimum number of years. Under the agreement, people can add together periods of social security coverage under the programs of both countries to qualify for Japanese social security benefits.

In the same way, to be eligible to receive disability or survivor benefits under the Canada Pension Plan, a person must have contributed to the Plan for a minimum period. Under the agreement, Canada will allow people to add periods of contribution to the Japanese pension program to qualify for Canada Pension Plan benefits.

Similarly, to qualify for an Old Age Security pension, people must have resided in Canada for a minimum number of years. The agreement allows applicants to use their periods of contribution to the Japanese pension program to meet the residence requirements for an Old Age Security pension.

The Agreement ensures that Canadian workers can continue to contribute to the Canada Pension Plan if their employer sends them to Japan to work temporarily. Consequently, their Canada Pension Plan protection will not be interrupted. The agreement also ensures that Canadian companies and their workers are exempt from contributing to Japan ’s pension program while they are working in Japan .

The agreement between Canada and Japan will enter into force after both countries complete approval procedures specified in their legislation or constitution. It is anticipated that the agreement will enter into force in late 2007.

Additional information on the Canada Japan Social Security Agreement can be found at http://www.sdc.gc.ca/en/isp/ibfa/countries/overview/japan.shtml.

Additional information on the Canada-Japan Economic Framework can be found http://www.dfait-maeci.gc.ca/tna-nac/RB/japan-intro-en.asp .

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This news release is available in alternative formats upon request.

For more information:

Media Relations
Human Resources and Social Development Canada
(613) 941-1110
www.sdc.gc.ca

For information on the Canada-Japan Economic Framework:

Media Relations Office
Foreign Affairs and International Trade Canada
(613) 995-1874
www.international.gc.ca

BACKGROUNDER

Canada concludes international social security agreements in order to coordinate its Old Age Security Program and Canada Pension Plan with comparable programs in other countries that provide old age, retirement, disability, and survivor benefits.

These agreements have the following objectives:

• to permit continuity of social security coverage when a person is working temporarily in the other country and to prevent situations where a person would have to contribute to both countries’ social security programs for the same work; and
• to make it easier to become eligible for benefits by adding together periods of social security coverage under the programs of both countries.

Canada now has concluded 50 international social security agreements. To date, agreements are in force with the following 45 countries :

Before an agreement can come into force, both countries must obtain legislative approval. Agreements have also been signed with Estonia , Japan , Latvia , Lithuania and Morocco , but are not yet in force.