In force since 1984. Coordinates U.S. Social Security with the Canada Pension Plan (CPP). Quebec has a separate parallel arrangement. Use the calculator to see where you owe social security tax and whether you can combine credits.
Canada splits retirement income between the contributory CPP (about 11.9% of pensionable earnings split employer/employee, plus enhanced tiers) and the residence-based OAS, which requires no contributions at all — just years of Canadian residence. The agreement coordinates U.S. Social Security with CPP, and a parallel understanding covers Quebec's QPP for workers in Quebec.
U.S. retirement benefits normally need 40 quarters (10 years) of credits. If you split a career between the U.S. and Canada, you might fall short in each country alone. As long as you have at least 6 quarters of U.S. credits, the agreement lets you add your Canada credits to reach eligibility — the U.S. then pays a benefit pro-rated to your U.S. credits only.
A Certificate of Coverage is the document that proves you're exempt from one country's social security. For U.S. coverage, the employer requests it from the SSA Office of Earnings & International Operations. Canada's authority issues the equivalent when Canada covers you.
Under the U.S.–Canada agreement, a worker sent by a U.S. employer for 5 years or less normally stays under U.S. Social Security only and is exempt from Canada's system. Your employer obtains a U.S. Certificate of Coverage as proof. Beyond 5 years, coverage shifts to Canada.
Yes. If you have at least 6 quarters (about 1.5 years) of U.S. credits, the agreement lets you combine ("totalize") your U.S. and Canada credits to reach the 40-quarter (10-year) threshold for a pro-rated U.S. retirement benefit.
The agreement has been in force since 1984.
Pension taxation depends on Canada's domestic law and the separate U.S.–Canada income tax treaty (if any), not the totalization agreement. The totalization agreement only governs which country's social security system covers you and how credits combine. Confirm pension taxation with a cross-border tax advisor.
They can. OAS is based on years of Canadian residence (10 to receive it in Canada, 20 to receive it abroad). Under the agreement, periods under U.S. Social Security can be counted to meet those thresholds, producing a pro-rated OAS based on your actual Canadian years — valuable for anyone who split a career across the border.