International Retirement: How Does it work Between Brazil and the U.S.?

President Michel Temer signed into law on June 26, 2018, an agreement that allows Brazilian workers residing in the United States (U.S.) and U.S. workers working in Brazil to aggregate periods of Social Security contributions from the two countries to reach the minimum period required for retirement, in addition to being eligible for other benefits.

The Welfare Department estimates that the agreement will benefit about 1.3 million Brazilians and more than 35 thousand Americans.

The agreement will extend coverage to workers affiliated with the social security systems of both countries and avoid double taxation in the event of a temporary transfer.

Persons who are or have been subject to the legislation of one or both contracting states and persons who have rights under that legislation are subject to the provisions of the agreement regardless of their nationality.

What is the significance of the social security agreement between Brazil and the United States?

This agreement, signed in 2018, allows the aggregation of contribution periods completed in both countries for the implementation and maintenance of the right to social security benefits, as well as the avoidance of double payment of the social security contribution, as in the case of temporary relocation.

In the aggregation process, the insured person may use the contribution periods in one of the countries to reach the required time to receive the benefit in any country.

We note that the agreement provides that retirement, disability and death pensions will be paid in the currency of each country to those who qualify.

Thus, Brazilians who qualify can apply for the benefits provided in the agreement in the same manner as Americans living here.

It is important to study the contributions of each country

Due to the agreement’s new provisions, Brazilians and Americans must study their current situation regarding Social Security benefits and plan when to apply for the pension.

Regardless of the situation, whether you are Brazilian and live in the U.S. or you are American and live here in Brazil, it is recommended to make a retirement plan.

In this way, it is possible to determine the best time to apply for retirement to obtain the best benefits.

Retirement planning avoids any type of loss. It is also possible to check in advance any type of system or information error that needs to be corrected. Indeed, there are cases where it is possible to spend retirement in both countries.

How will the agreement work?

The agreement, which extends the coverage to workers affiliated with the Brazilian and North American social security systems, can be applied in both countries.

The Brazilian citizen living in the United States can add up the contribution periods in both countries to be entitled to the benefits provided for in the agreement: Old Age Pension, Death Pension, and Disability Pension.

The application can be made to the North American social security agency without coming to Brazil or hiring a lawyer to apply for the benefit.

The American resident in Brazil can also add up the contribution periods in both countries to enjoy the benefits provided for in the agreement and must submit the application directly to the INSS.

Does the agreement also apply to state employees?

The insured persons who are affiliated with the Special Social Security System for Civil Servants and the System for Military Employees in Brazil can also use the contribution period for the U.S. Social Security System and therefore are entitled to the Social Security benefit.

In this case, the application for RPPS must be submitted to the administrative unit of the civil servant’s agency.

Do I have to be domiciled in the country?

The country of residence is not necessarily a requirement for counting contributions but rather the system to which the employee is bound.

Individuals who contribute to social security in one of the countries that have agreed to the protocol may invoke the agreement to become eligible for social security benefits regardless of their nationality.

Contributions in case of temporary relocation

A company that posts its employee to another country to provide services on its behalf may apply for a temporary posting certificate. With this certificate, which has a duration of up to 5 years, the employee is exempted from the social security obligation in the country of destination and remains affiliated with the social security system of the country of origin.

The certificate is also issued when an employer posts an employee to an affiliated company in the other country’s territory. In this case, however, coverage must be provided by local legislation.

How to apply for the agreement between Brazil and the United States?

Those who reside in Brazil can apply for the benefit directly at INSS offices, although a prior appointment is required.