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The pension rights of Romanian and US workers working on the territory of the other state will be granted on the basis of new provisions included in the Agreement on Social Security between Romania and the United States of America, says the Agreement-ratifying Law, promulgated by President Klaus Iohannis on Wednesday.
According to a press release issued on 5 October by the Ministry of Labour, at the time of the Executive's approval of the draft law, the Agreement in the area of social security covers persons who are or have been subject to the laws of one or both states, but also those whose rights derive, according to the applicable laws, from them.
Under the new agreement, it will be possible to use the periods worked both in Romania and in the USA, in order to open the right to a pension on the principle of totalisation, with each country granting a proportional pension, depending on the periods of insurance completed in its own system.
The document also contains provisions on the export of pensions, being a very important advantage for facilitating the mobility of pensioners from the two countries to the other country and maintaining their access to pension rights in payment.
The Agreement also contains provisions on the determination of the applicable legislation in order to avoid double social security contributions for a worker or the risk that the worker will not be subject to any of the social security schemes covered by the Agreement.
The draft law approved by the Executive also includes provisions relating to posted workers. In this regard, it has also established their mutual exemption from the payment of social security contributions in the national health insurance system of the state where they are posted.
The agreement in the area of social security includes provisions on administrative and cooperation measures, including the language of communication, currency of payment, dispute settlement, duration and entry into force, and is to be ratified by law by the Romanian Parliament.
