A detailed look at how Permanent Incapacity works in the Bilateral Social Security Agreement between Spain and the United States, including who is eligible, what benefits are offered and how contribution periods in both countries are added together.
Contributions and retirement between Spain and the United States
The Bilateral Social Security Agreement between Spain and the United States is an agreement that seeks to regulate social security benefits for people who work or have worked in both countries, as well as for their heirs.
The main objective of this Agreement is to add together the periods contributed to the Social Security of Spain and the United States, allowing workers to access the corresponding benefits in both countries.
However, it is important to note that concurrent contributions are not added together, meaning that the periods in which contributions have been made simultaneously in both countries will not be added together.
The Social Security Administration of the United States will take into account all the periods in which the interested party has contributed, while the Spanish Social Security will take into account all the periods of contributions, as long as they do not overlap with the periods of contributions in the United States.
BENEFICIARIES AND BENEFITS OF THE AGREEMENT
The Convention applies to people who work or have worked in one or both countries, as well as their heirs.
With regard to Spain, the following contributory benefits of the Social Security system apply: retirement pension and benefits for permanent disability, death and survival due to a common illness or non-occupational accident.
With regard to the United States, thisapplies to the Federal Old-Age, Survivors and Disability Insurance Program.
These benefits allow beneficiaries to access a retirement pension, as well as benefits for permanent disability, death and survival in the event of a common illness or non-occupational accident.
SUM OF QUOTED PERIODS AND SPECIAL PROVISIONS
The Agreement allows the periods of Social Security contributions in both countries to be added up, as long as they do not overlap.
This means that the United States Social Security Administration will take into account all the periods contributed by the interested party, while the Spanish Social Security will take into account all the contribution periods, regardless of whether they are mandatory or voluntary, as long as they do not overlap with the periods of contributions in the United States.
It is important to keep in mind that, as a general rule, the insured person will be subject to the Social Security of the country in which he/she carries out his/her work activity. However, there are special provisions for certain jobs and temporary transfers.
Contributions of EMPLOYED WORKERS IN DIFFERENT SITUATIONS
In the case of employed workers, their particular employment situation may dictate whether they have to contribute to Social Security in Spain or in the United States:- If a Spanish worker is temporarily posted in the United States by a Spanish company, he/she must contribute to Spanish Social Security if he/she is going to remain less than 5 years in the United States. After this time, if he/she continues to carry out his/her activity in the United States, he/she must contribute in that country and deregister from the Spanish Social Security. If the worker wishes to maintain his/her registration with the Spanish Social Security, he/she can sign a special agreement.
- If a Spanish worker is temporarily posted to Spain by a US employer, he must contribute to US Social Security if he/she is to work in Spain for less than 5 years. After this authorized period, if the worker must remain in Spain, he/she must contribute to the Spanish Social Security as an employee of the American company.
- If a worker works in the United States for a non-Spanish employer, he/she must contribute to American Social Security.
- If a worker works in Spain for a non-US employer, he/she must contribute to Spanish Social Security.
FINAL CONSIDERATIONS AND RECOMMENDATIONS
It is important to take into account the provisions of the Bilateral Social Security Agreement between Spain and the United States to ensure that contribution obligations are met in each country.
Workers who find themselves in any of the situations mentioned in the Agreement are recommended to seek specialized advice, such as that which we provide at Conesa Legal, to ensure that all legal requirements are met and the corresponding benefits may be accessed in both countries.
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