A totalization agreement, also known as a Social Security agreement or a bilateral Social Security agreement, is an agreement between two countries that aims to eliminate dual Social Security taxation and ensure that individuals who work and reside in both countries receive their Social Security benefits.
The United States and Norway signed a totalization agreement in 1984, which came into force on July 1, 1986. The agreement was negotiated to provide benefit protection to workers who divide their careers between the two countries. The agreement also helps to prevent double taxation and ensure that both countries’ social security systems align.
Under the agreement, workers who have worked in both the United States and Norway are generally subject to one country’s social security system at a time. This means that only one set of social security taxes will be paid by the individual. Eligible workers can receive benefits from either the United States or Norway, depending on where they have worked the most.
To be covered under the totalization agreement, an individual must have worked in both the United States and Norway and have paid into both social security systems for a certain period. Additionally, eligibility for benefits depends on the type of benefit and the individual’s work history in each country.
The totalization agreement between the United States and Norway simplifies the process for individuals who work and live in both countries. It also ensures that they are not taxed twice on their social security benefits and can receive the benefits they are entitled to.
In conclusion, the totalization agreement between the United States and Norway is a crucial agreement that helps to simplify the process for individuals who work and live in both countries. It eliminates dual Social Security taxation and ensures that workers are able to receive their social security benefits. Individuals who have worked in both the United States and Norway should inform themselves about the agreement’s provisions and their eligibility for benefits.