In addition to improving the social security of working workers, international social security agreements help ensure continuity of benefit protection for people who have received social security credits under the U.S. system and another country. The detached house rule may apply if the U.S. employer transfers a worker to work at a foreign branch or in one of its foreign subsidiaries. However, in order for U.S. coverage to continue when a transferred employee works for a foreign subsidiary, the U.S. employer must have entered into a Section 3121 (l) agreement with the U.S. Treasury Department with respect to the foreign subsidiary. The agreements allow sSA to add U.S. and foreign coverage credits only if the worker has at least six-quarters of U.S. coverage.
Similarly, a person may need a minimum amount of coverage under the foreign system to have U.S. coverage accounted for in order to meet the conditions for granting foreign benefits. As a precautionary measure, it should be noted that the derogation is relatively rare and is invoked only in mandatory cases. There are no plans to give workers or employers the freedom to regularly choose coverage that contradicts normal contractual rules. Applications should include the name and address of the employer in the United States and the other country, the full name, place and date of birth of the worker, nationality, U.S. and foreign Social Security numbers, location and date of employment, and the start and end date of the assignment abroad. (If the employee works for a foreign subsidiary of the U.S. company, the application should also indicate whether U.S. Social Security Insurance has been agreed upon for employees of the related company pursuant to Section 3121 (l) of the internal income code.) Self-employed workers should indicate their country of residence and the nature of their self-employment.
When applying for certificates as part of the agreement with France, the employer (or non-employee) must also certify that the worker and all accompanying family members are covered by health insurance. The competent authorities and agencies of the parties assist each other in the implementation of this agreement, within the framework of their respective authorities. This assistance is free of charge, subject to any waiver agreed in an administrative agreement. This agreement may be amended in the future by complementary agreements which, as soon as they come into force, will be considered an integral part of this agreement. International social security agreements are beneficial for both those who work today and those whose careers are over. For current workers, the agreements eliminate the double contributions they might otherwise make to social security plans in the United States and another country. For people who have worked in the United States and abroad and are now retired, disabled or deceased, agreements often result in the payment of benefits to which the worker or family members would not otherwise be entitled. Totalization agreements only apply to self-employed workers and people who are deployed by their employers to work in another country.