Prime Minister Stephen Harper has signed a social security agreement with Brazilian president Dilma Rousseff coordinating pension programs for Canadians and Brazilians who have lived or worked in the other country. The agreement was made during Harper’s Latin America tour.
Specifically, the agreement will:
- reduce restrictions that may prevent Canadians from receiving pension benefits from Brazil;
- reduce restrictions on the payment of Canadian benefits to people residing in Brazil;
- permit continuity of social security coverage when Canadians are sent to work temporarily in Brazil; and
- make it easier for citizens of either country to become eligible for benefits by adding together periods of social security coverage in both countries.
The agreement, which coordinates pensions, disability and survivor benefits, will cut costs for businesses with operations in both countries. Canadian companies with operations in Brazil will only be required to make CPP contributions for Canadian employees sent to Brazil, and will be exempt from making contributions to Brazil’s pension program. The same would apply for Brazilian companies carrying on business in Canada.
Canada currently has international social security agreements with more than 50 other countries.