Prime Minister Stephen Harper and Brazilian president Dilma Rousseff have signed an agreement on social security.
The agreement will co-ordinate pension benefits between the two countries and will provide retirement, disability and survivor benefits to eligible Canadians and Brazilians who have lived or worked in the other country, or to their surviving spouse, common-law partner or children.
The agreement will result in savings and enhanced competitiveness for Canadian companies operating in Brazil because, while they will continue to make Canada Pension Plan (CPP) contributions for their Canadian employees sent to work in Brazil, they will now be exempt from making Brazilian social security contributions. The same is true for Brazilian companies operating in Canada.
The agreement will:
•reduce restrictions that may prevent Canadians from receiving pension benefits from Brazil
•reduce restrictions on the payment of Canadian benefits to people residing in Brazil
•permit continuity of social security coverage when Canadians are sent to work temporarily in Brazil
•make it easier for citizens of either country to become eligible for benefits by adding together periods of social security coverage in both countries.
The agreement between Canada and Brazil will enter into force once both countries have completed their legal procedures.
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