Main Contents of the Social Security Agreement Between Korea and Canada
History of the Agreement with Canada
- Jul. 1994 :agreed on negotiating a Social Security Agreement between Korea and Canada
- Oct. 1995 :first round of Negotiation Meetings for the Agreement in Canada
- Feb. 1996 :second round of Negotiation Meetings for the Agreement in Korea
- Jan. 1997 :signed the Agreement on Social Security between Korea and Canada
- Sep. 1998 :Negotiation Meetings for the Administrative Arrangement of the Agreement
- Dec. 1998 : gave written notification to Canada that Korea has complied with all requirements for entry into force of this Agreement
- Jan. 1999 :received written notification from Canada that Canada has complied with all requirements for entry into force of this Agreement
- Mar. 1999 :held meetings for the Implementation of the Agreement between Agencies of both countries
- Apr. 1999 :signed the Administrative Arrangement of the Agreement
- May. 1999 :Social Security Agreement between Korea and Canada entered into force
Applicable Legislation
- With respect to Korea,
(1) the National Pension Law and enforcement rules and regulations - With respect to Canada,
(1) the Old Age Security Act and the regulations made thereunder
(2) the Canada Pension Plan and the regulations made thereunder
Personal Scope of this Agreement
- This Agreement shall apply to any person who is or who has been subject to the legislation of either Korea or Canada, and to the dependents and survivors of such a person irrespective of their nationality. Therefore, any person such as a national of the contracting country, a stateless person, a refugee or a national of a third country who is or has been subject to the legislation of either contracting country shall be covered by this agreement with his/her dependents and survivors.
- ※ For more information, you may refer to the section Text of Agreement
Exemption from Dual Coverage
- In general, an employee is subject to the legislation of a contracting country in which he/she is employed.
- A self-employed person is subject to the legislation of a contracting country in which the person ordinarily resides.
- In the case a person is considered to be self-employed under the laws of a contracting country but considered to be employed under the laws of the other contracting country for the same activity, that person is subject to the laws of the contracting country where he/she resides.
- A detached worker is exempt from coverage under the pension system of the contracting country which he/she is sent to for less than 5 years if he/she is covered under the pension scheme of his/her home country.
- ※ For more information, you may refer to the section Agreement or Guide for Exemption Application
[ Countries that employees and the self-employed pay their contributions to ]
| Type | Work Status | Coverage |
|---|---|---|
| Employee | Employed in Canada | |
| - you are employed and working in Canada | Canada | |
| - you are employed in Korea and sent to work in Canada for less than 5 years | Korea | |
| - you are employed in Korea and sent to work in Canada for more than 5 years | Canada | |
| employed in Korea | ||
| - you are employed and working in Korea | Korea | |
| - you are employed in Canada and sent to work in Korea for less than 5 years | Canada | |
| - you are employed in Canada and sent to work in Korea for more than 5 years | Korea | |
| Self-employed | Self-employed in Canada | |
| - you ordinarily reside in Korea but are self-employed in Canada | Korea | |
| - you ordinarily reside in Korea but are self-employed in both Korea and Canada | Korea | |
| Self-employed in Korea | ||
| - you ordinarily reside in Canada but are self-employed in Korea | Canada | |
| - you ordinarily reside in Canada but are self-employed in both Korea and Canada | Canada |
Benefits under this Agreement
- Even though your periods of coverage in one country are not sufficient to qualify for pension benefits, you may be eligible for benefits after this Agreement has entered into force. This is possible due to totalization of coverage in both countries.
- ① Korean National Pension Benefits under the Social Security Agreement
- If you have more than 12 months of insured period in Korea but do not have enough periods of coverage(e.g., 20 years for Full Old-age pension) to qualify for pension benefits under the Korean pension system, you may be able to qualify for Korean benefits by totalizing periods of coverage under the Korean pension system and the Canadian pension system. However, those periods creditable under the Canadian pension system, must not coincide with the periods under the legislation of Korea. Your benefit is calculated by dividing the Korean periods of coverage by the total periods of coverage and then multiplying by the Theoretical Benefit. The Theoretical Benefit is calculated based on the totalized periods in both countries.
- ② Canadian Pension Benefits under the Social Security Agreement
- If you have more than 12 months of insured period in Canadian Old Age Security System(OAS) but do not have enough periods of coverage(e.g., 10 years for Old-age pension) to qualify for pension benefits under Canadian Old Age Security System(OAS), you may be able to qualify for Old Age Security pension by totalizing periods of coverage under the Korean pension system and the Canadian Old Age Security System(OAS). However, those periods creditable under the Korean pension scheme, must not coincide with the periods of residence under Canadian Old Age Security System(OAS).
- If you do not have enough periods of coverage to qualify for Canadian pension benefits under the Canada Pension Plan(CPP), you may be able to qualify for Canadian pension benefits by totalizing periods of coverage under the Korean pension system and the Canada Pension Plan(CPP). However, those periods creditable under the Korean pension scheme, must not coincide with the periods the Canada Pension Plan(CPP).
- ③ A person who is or has been subject to the laws of one contracting country and who resides within the territory of the other contracting country shall, together with his dependents, receive equal treatment with the nationals of the other contracting country in the application of the laws of the other contracting country.
- ④ A Korean Lump-sum refund is paid to Canadian nationals.
- ⑤ However, since there is no provision for a Lump-sum refund in the legislation of the Canadian Pension System, Korean people cannot be paid a Lump-sum refund from the Canadian Pension System. Instead, the contributions to the Canadian Pension System may be calculated toward pension payments according to the legislation of the Canadian Pension System.
- ※ For more information, you may refer to the section Agreement or Guide for Exemption Application
Agencies of this Agreement
- As regards Korea,
- (1) National Pension Service (NPS)
- As regards Canada,
- (1) Department of Human Resources and Social Development ⇒ www.hrsdc.gc.ca
- (2) Canada Revenue Agency ⇒ www.cra-arc.gc.ca
