Hungary requires 15 years of service for a partial old-age pension and 20 for a full one, funded by an 18.5% employee social contribution (pensions are one component) plus employer levies. Benefits are earnings-related with service-length multipliers.
U.S. retirement benefits normally need 40 quarters (10 years) of credits. If you split a career between the U.S. and Hungary, 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 Hungary 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. Hungary's authority issues the equivalent when Hungary covers you.
Under the U.S.–Hungary 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 Hungary's system. Your employer obtains a U.S. Certificate of Coverage as proof. Beyond 5 years, coverage shifts to Hungary.
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 Hungary credits to reach the 40-quarter (10-year) threshold for a pro-rated U.S. retirement benefit.
The agreement has been in force since 2016.
Pension taxation depends on Hungary's domestic law and the separate U.S.–Hungary 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.
Hungary pays a partial pension at 15 service years and a full one at 20. Under the 2016 agreement, U.S. coverage periods count toward these thresholds, with Hungary then paying pro-rata for your actual Hungarian service. Pre-agreement Hungarian years count too.