The goal of all U.S. totalization agreements is to eliminate dual social security and taxation, while maintaining coverage for as many workers as possible under the country where they are likely to have the most ties, both at work and after retirement. Any agreement aims to achieve this objective through a series of objective rules. The agreements also have a positive effect on the profitability and competitive position of companies operating abroad by reducing their business costs abroad. Companies with staff stationed abroad are encouraged to use these agreements to reduce their tax burden. 3. The agreements covered in paragraphs 1 and 2 are amended so that all references to a given age related to a pension entitlement or right to a pension under UK law are considered references to the UK retirement age, the importance of Section 122, paragraph 1 (interpretation of parts 1 to 6 and complementary provisions) of the Social Security Polices and Benefits Act 1992. These Council decisions lead to agreements between the UK government and the governments of other countries that provide for reciprocity in certain aspects of social security. These agreements are now being amended as a result of an amendment to UK law and will now include the state pension under the first part of the 2014 Pension Act. 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.

This regulation provides that Part 1 of the Pension Act 2014, the provisions adopted under the Pensions Act and other social security legislation must be amended in order to be successful – this publication is available under www.gov.uk/government/publications/reciprocal-agreements/reciprocal-agreements You must take into account the terms of the corresponding agreement in order to define the rules in force – the corresponding agreement is the agreement between the United Kingdom and the country where the worker has already contributed (although the situation may be in three or more countries). In general, these agreements provide that the migrant must pay NIC, unless the cashed-up rule applies if the U.S. employer transfers a worker to work at a branch abroad 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. 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. Any agreement (with the exception of the agreement with Italy) provides an exception to the territorial rule, which aims to minimize disruptions in the career of workers whose employers temporarily send abroad.

Under this “self-employed” exception, a person temporarily transferred to service for the same employer in another country is covered only by the country from which he or she was seconded.