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Social security agreement helps people who have lived or worked in Canada and Romania
OTTAWA, ONTARIO, November 19, 2009—The Honourable Diane Finley, Minister of Human Resources and Skills Development, announced today the signing of the Agreement on Social Security between Canada and Romania. The Agreement was signed by Mr. Bogdan Aurescu, Romanian Secretary of State for Strategic Affairs, and Ms. Janice Charette, Deputy Minister of Human Resources and Skills Development Canada, on behalf of the Government of Canada, during Mr. Aurescu’s visit to Canada.
“Canada negotiates agreements with other countries that offer programs comparable to our Old Age Security program and Canada Pension Plan,” said Minister Finley. “Agreements such as this one will help provide seniors with additional income in retirement. This agreement with Romania is also an important step toward strengthening the relationship and cooperation between our two countries.”
Once in force, this agreement will make it easier for people who have lived and worked in both Romania and Canada to qualify for public pension benefits from either or both countries. Through this agreement, the Government of Canada can coordinate Canada’s Old Age Security program and the Canada Pension Plan with the comparable program in Romania.
The Agreement will do the following:
- reduce restrictions that may prevent Canadians from receiving pension benefits from Romania;
- reduce restrictions on the payment of Canadian benefits to people residing in Romania;
- permit continuity of social security coverage when Canadians are sent to work temporarily in Romania; and
- make it easier to become eligible for benefits by adding together periods of social security coverage in both countries.
The Agreement will also result in savings for Canadian companies operating in Romania. Canadian companies will continue to make Canada Pension Plan contributions for their Canadian employees sent to work in Romania, and will be exempt from making Romanian social security contributions. This translates directly into enhanced competitiveness for Canadian companies operating in Romania. The same is true for Romanian companies operating in Canada.
The Agreement between Canada and Romania will enter into force once both countries have completed their legal procedures, which is expected in the second half of 2010. With the signing of this a greement, Canada has concluded 53 international social security agreements, 50 of which are in force. Agreements have also been signed with Morocco and Macedonia, but are not yet in force.
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This news release is available in alternative formats on request.
For further information (media only):
Office of Minister Finley
Media Relations Office
Human Resources and Skills Development Canada