Social Security Totalization

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As a American missionary serving in another country, you should only pay social security in the US.  Paying into two countries social security systems results in double payment and may result in ineligibility for benefits.  The US has social security totalization agreements with the following countries: Australia, Austria, Belgium, Canada, Chile, Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, Netherlands, Norway, Poland, Portugal, South Korea, Spain, Sweden, Switzerland, and the United Kingdom.

The treaties indicate that a worker should pay into the system where they work, which is referred to as the “territorial rule.”  However there is an exception that applies to most American missionaries called the “foreign detached worker exception.”  Under this exception employers are allowed to request certificates of coverage from the US Social Security Administration for employees they send overseas.  These certificates permit the worker to not be forced into the social security system of their host country.  The requirements are that the assignment originate in the US, that the worker be assigned to the the foreign branch of the same company, and that the assignment last no longer than five years.  After five years, the worker must return to the US for at least six months.  France and Germany require the workers to return for 366 days.  Short trips back to the host country for meetings and vacation during this time away are permitted.

Missionaries should carefully plan their assignments and furloughs to fulfill these requirements.  Mission boards should apply for the certificates for their personnel.  Careful adherence to to these agreements will save the mission board money and ensure that the missionary is eligible for retirement benefits.

More Information:  Social Security Administration Totalization Overview