The governments of Canada and Japan have signed a social security agreement that will allow Canadian workers posted temporarily in Japan to continue contributing to the Canada Pension Plan (CPP) while abroad, while exempting them and their employer from having to contribute to the Japanese pension program.
This is just the latest in a number of social security agreements that Canada has signed with countries throughout the world. The agreements help workers who have been employed in both their home country and a host country to qualify for old age, retirement, disability, or survivor benefits from both countries.
The agreement with Japan will not take effect until the legislatures in both countries approve it. According to a news release from Social Development ministry, the agreement is expected to take effect late next year. Once in force, it will apply to the CPP and the Old Age Security plan and the comparable Japanese pension program.
The news release explains that the Japanese pension program requires individuals to contribute to it for a minimum number of years in order to qualify for benefits. It states that the agreement will allow individuals to add together periods of social security coverage under the programs of both countries in order to qualify for Japan's benefits.
Similarly, the CPP requires that to be eligible for survivor or disability benefits, individuals must have contributed to the plan for a minimum period. The agreement will allow individuals to add together periods during which they contributed to the Japanese program in order to qualify for CPP benefits. In addition, the agreement will allow individuals to use the time period during which they were contributing to the Japanese pension plan to meet the residence requirements for Canada's Old Age Security program.
The agreement with Japan will not take effect until the legislatures in both countries approve it. According to a news release from Social Development ministry, the agreement is expected to take effect late next year. Once in force, it will apply to the CPP and the Old Age Security plan and the comparable Japanese pension program.
The news release explains that the Japanese pension program requires individuals to contribute to it for a minimum number of years in order to qualify for benefits. It states that the agreement will allow individuals to add together periods of social security coverage under the programs of both countries in order to qualify for Japan's benefits.
Similarly, the CPP requires that to be eligible for survivor or disability benefits, individuals must have contributed to the plan for a minimum period. The agreement will allow individuals to add together periods during which they contributed to the Japanese program in order to qualify for CPP benefits. In addition, the agreement will allow individuals to use the time period during which they were contributing to the Japanese pension plan to meet the residence requirements for Canada's Old Age Security program.
