Signing of the Agreement between Japan and the United States of America on Social Security

(1) At present, a person normally employed in either Japan or the United States and temporarily dispatched to the other country is obliged to be covered by the pension systems and health insurance systems of both countries. Therefore, he/she and his/her employed have to pay social security contributions for both Japanese and U.S. pension systems and health insurance systems ("dual-payment" problem). The Japan-U.S. Social Security Agreement would, in principle, allow him/her to be subject to the pension system and health insurance system only of his/her original country, when the period of work in the other country is five years or less.

(2) Currently, a person who has worked and paid social security contributions in Japan/U.S. for a period shorter than that required for him/her to be entitled to pensions in Japan/U.S. cannot receive Japanese/U.S. pensions, even when he/she satisfies the requirement once his/her working periods in Japan and the U.S. are totaled. The Japan-U.S. Social Security Agreement allows, in principle, such person to add up the periods for which he/she has paid social security contritutions in both countries. By doing so, a person whose working period in Japan and the U.S. in total satisfies the requirement to be entitled to pensions in one country (or both) becomes eligible to receive pensions from that country (or both). Once the person becomes entitled, the amounts of pension he/she receives are calculated in accordance with the period(s) for which he/she has actually paid social security contributions in the country(ies) of his/her entitlement.