Canada and the Republic of Lithuania sign Social Security Agreement

OTTAWA, July 5, 2005 — Ken Dryden, Minister of Social Development, announced today that His Excellency, Robert Andrigo, Canadian Ambassador to Lithuania , has signed an International Social Security Agreement with the Republic of Lithuania , on behalf of the Government of Canada. The agreement was signed in Vilnius, Lithuania.

Mrs. Vilija Blinkeviciute, the Minister of Social Security and Labour, signed on behalf of the Republic of Lithuania .

"Canada is committed to entering into agreements with other countries that offer programs comparable to our Old Age Security program and Canada Pension Plan," said Minister Dryden. “This agreement with the Republic of Lithuania is an important step toward strengthening the relationship and cooperation between our two countries.”

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 Lithuanian pension program, which provides old age, disability, and survivor benefits.

Normally, to qualify for a benefit under the Lithuanian 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 Lithuanian 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 Lithuanian 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 Lithuanian pension program to meet the residence requirements for an Old Age Security pension.

The Social Security Agreement between Canada and Lithuania also ensures that Canadian workers can continue to contribute to the Canada Pension Plan if their employer sends them to Lithuania 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 Lithuania ’s pension program while they are working in Lithuania .

The Agreement between Canada and the Republic of Lithuania will enter into force after both countries 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 49 countries.

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For information, please contact:

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

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

This news release is available in alternative formats, on request. Call 1 800 788-8282 on a Touch-Tone phone or through a teletypewriter (TTY).

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 49 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, Morocco, Latvia and Lithuania, but are not yet in force.