Denmark and the United States of America have a social security agreement in place to ensure that individuals who have worked in both countries receive the appropriate retirement, disability, and survivor benefits.
The agreement, which was signed in 2008, covers individuals who have worked in one or both countries and have paid into the social security system. It eliminates dual social security taxation, which means that individuals will only be required to pay into the social security system of the country in which they are currently working.
The agreement also allows for the totalization of periods of coverage in both countries, which means that individuals can combine their periods of work in Denmark and the United States to qualify for benefits. This is particularly beneficial for individuals who have not worked long enough in one country to qualify for benefits but have worked in both countries.
One of the key benefits of the social security agreement for individuals who have worked in both countries is that they may be entitled to receive benefits from both countries. For example, if an individual has worked in Denmark and the United States and has met the eligibility requirements for both countries, they may be entitled to receive benefits from both countries.
There are also specific provisions in the agreement for individuals who have worked as a self-employed person or who have worked for an employer who is not based in either Denmark or the United States. These provisions ensure that individuals are still eligible for social security benefits even if they have worked outside of these two countries.
It is important to note that the social security agreement between Denmark and the United States only covers social security contributions and benefits. It does not cover other areas such as healthcare or pension plans. These areas are governed by separate agreements.
Overall, the social security agreement between Denmark and the United States is an important tool to ensure that individuals who have worked in both countries receive the appropriate social security benefits. By eliminating dual social security taxation and allowing for the totalization of periods of coverage, the agreement ensures that individuals are not penalized for working in both countries.
