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1993.
10.27 : US and Luxembourg Coop Agreement

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Social Security Administration
Wednesday, October 27, 1993
Phil Gambino   (410) 965-8904
               (202) 690-8359

     The United States and Luxembourg have entered into a Social
Security agreement effective Nov. 1 that will eliminate duplicate
coverage and taxation under the two countries' Social Security
systems, Shirley S. Chater, Commissioner of Social Security,
announced today.
     Until now, many U.S. citizens and residents working in
Luxembourg for American employers have had to pay Social Security
contributions--together with their employers--to both countries for
the same work.  The combined U.S. and Luxembourg contributions
payable by an employer and employee could exceed 60 percent of an
employee's salary.
     Frequently, Luxembourg nationals working in the United States
have also been required to make Social Security contributions to
both countries.  Once the agreement becomes effective, these
workers and their employers will be covered under either U.S. or
Luxembourg Social Security, but not both.
     The agreement, which will be administered in the United States
by the Social Security Administration, will also help fill gaps in
Social Security benefit protection for people who have spent time
working in both countries.  At present, some workers who have
divided their careers between the United States and Luxembourg fail 
to qualify for Social Security benefits from one or both countries
because they have not worked long enough to meet minimum
eligibility requirements.
     Under the agreement, it will be possible for these workers and
their family members to qualify for partial U.S. or Luxembourg
benefits based on combined Social Security credits from both
countries.  When entitlement to a benefit is based on combined
credits, the benefit amount will be proportional to the amount of
work completed in the paying country.
     Negotiations on the U.S.-Luxembourg agreement began in 1989. 
Officials of the two countries signed the accord in Luxembourg on
February 12, 1992.  The United States has similar Social Security
agreements in effect with Austria, Belgium, Canada, Finland,
France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal,
Spain, Sweden, Switzerland, and the United Kingdom.  U.S. officials
have also signed an agreement with Greece but it has not yet
entered into force.