As a precautionary measure, it should be noted that the derogation is relatively rare and is invoked only in mandatory cases. There are no plans to give workers or employers the freedom to regularly choose coverage that contradicts normal contractual rules. The agreements work by assigning social security and therefore the tax obligation to a single country, as stipulated by the rules of each convention. These rules can vary considerably, but all agreements have some commonalities, such as the allocation of coverage, so that workers pay social security taxes to one or the other country, not both. SSA cooperates with representatives of its totalization partners throughout the negotiation process and after the agreement enters into force to ensure that workers are covered by the laws of the country to which they attach the greatest economic link. When a person is qualified for a social security benefit in the United States on the basis of cumulative coverage in the U.S. and abroad under a totalization agreement, the amount of the U.S. benefit payable is only proportional to the periods of coverage earned in the United States. Similarly, the partner country pays a partially or proportionately paid benefit when combined coverage entitles you to a claim.
It is therefore possible for a person to enjoy an overall benefit from an agreement of one of the two countries or both countries if he meets all the conditions applicable to the claim. The provisions for calculating benefits used in the United States are uniform in all totalization agreements, as required by law in provisions 42 U.S.C. Determining a proportional amount of U.S. benefits as part of a totalization agreement is a three-step process. The most notable exception to the territorial rule is called a detached work rule. Under this rule, a worker whose employer requires his temporary relocation from one country to another to work for the same company continues to pay social security contributions and retains insurance coverage exclusively in the country from which he has moved.1 According to almost all totalization agreements, the duration of such a transfer cannot be expected at the time of the transfer. to exceed 5 years. This rule ensures that workers who work only temporarily in the other country continue to work in their home country, which remains the country of their greatest economic link.2 On the other hand, workers who change countries permanently are insured under the country of destination regime. By mutual agreement, the two countries can agree to extend the five-year period for temporary missions abroad on a case-by-case basis, but extensions beyond two more years are rare. In 1973, the Minister of Health, Education and Welfare, Caspar Weinberger, and his Italian counterpart signed the first U.S. totalization agreement. Although the Italian government quickly ratified the agreement as a treaty, Congress had not yet adopted an approval status; That is why the United States has not been able to implement the agreement.