Canada and the Republic of Estonia sign Social Security Agreement

OTTAWA—The Honourable Ken Dryden, Minister of Social Development, today signed, on behalf of the Government of Canada, an International Social Security Agreement with the Republic of Estonia.

Mr. Marko Pomerants, Minister of Social Affairs, signed on behalf of the Republic of Estonia.

"This agreement on social security marks a new level in the relationship between our two countries," said Minister Dryden. "International agreements such as this put into practice our commitment to working with countries like Estonia to ensure greater income security for our citizens."

Social security agreements between Canada and other countries help people who have lived or worked in both Canada and another country to qualify for old age, retirement, disability, or survivor benefits from both countries.

The Agreement applies to Canada's Old Age Security program and Canada Pension Plan and the comparable Estonian pension program, which provides old age, disability, and survivor benefits.

Normally, to qualify for a benefit under the Estonian pension program, a person must have contributed to the program for a minimum number of years. Under the Agreement, people can add together periods of social security coverage under the programs of both countries to qualify for Estonian social security benefits.

In the same way, to be eligible to receive certain benefits under the Canada Pension Plan, a person must have contributed to the Plan for a minimum period. Under the Agreement, Canada will allow people to add periods of contribution to the Estonian pension program to qualify for Canada Pension Plan benefits.

Similarly, to qualify for an Old Age Security pension, people must have resided in Canada for a minimum number of years. The Agreement allows applicants in Canada to use their periods of contribution to the Estonian pension program to meet the residence requirements for an Old Age Security pension.

The Social Security Agreement between Canada and Estonia also ensures that Canadian workers can continue to contribute to the Canada Pension Plan if their employer sends them to Estonia to work temporarily. In this way, their Canada Pension Plan protection will not be interrupted. The Agreement also ensures that Canadian companies and their workers are exempt from contributing to Estonia's pension program while they are working in Estonia.

The Agreement between Canada and Estonia will not enter into force immediately after signing. Both countries must first complete approval procedures specified in their legislation or constitution. It is anticipated that the Agreement will enter into force in 2006.

To date, Canada has signed social security agreements with 47 countries.

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For more information:

Sarah Bain
Press Secretary
Minister Dryden's office
(613) 941-0766

Media Relations Office
Social Development Canada
(613) 941-1110

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BACKGROUNDER

Canada concludes international social security agreements in order to coordinate its Old Age Security Program and Canada Pension Plan with comparable programs in other countries that provide old age, retirement, disability, and survivor benefits.

These agreements have the following objectives:

• to permit continuity of social security coverage when a person is working temporarily in the other country and to prevent situations where a person would have to contribute to both countries' social security programs for the same work; and
• to make it easier to become eligible for benefits by adding together periods of social security coverage under the programs of both countries.

Canada now has concluded 47 international social security agreements. To date, agreements are in force with the following 45 countries:

Before an agreement can come into force, both countries must obtain legislative approval. Agreements have also been signed with Estonia and Morocco but are not yet in force.