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1992.10.29 :  Finland and U.S. Agreement

Contact: Phil Gambino (410) 965-8904 (202) 690-8359
October 29, 1992

       The United States and Finland have entered into a Social
Security agreement effective Nov. 1 that will eliminate duplicate
coverage and taxation under the two countries' Social Security
systems, Louis D. Enoff, acting commissioner of Social Security,
announced today.
       Until now, many U.S. citizens and residents working in
Finland 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 Finnish contributions
payable by an employer and employee could exceed 46 percent of an
employee's salary.
       Frequently, Finnish 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
Finnish 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
Finland 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 Finnish
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.  The agreement also makes
it easier to qualify for Finnish benefits by relaxing residence
and certain other requirements that normally apply under the
Finnish Social Security programs.
       Negotiations on the U.S./Finnish agreement began in 1989. 
Officials of the two countries signed the accord in Helsinki on
June 3, 
1991.  The United States has similar Social Security
agreements in effect with Austria, Belgium, Canada, France,
Germany, Italy, the Netherlands, Norway, Portugal, Spain, Sweden,
Switzerland and the United Kingdom.

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