Sweden credits 18.5% of pensionable income each year: 16% into a notional income-pension account and 2.5% into an invested premium pension you allocate yourself (the famous "orange envelope" statement tracks both). Rights accrue from the first krona with no long minimum period, so every Swedish year creates real, portable pension value.
U.S. retirement benefits normally need 40 quarters (10 years) of credits. If you split a career between the U.S. and Sweden, 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 Sweden 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. Sweden's authority issues the equivalent when Sweden covers you.
Under the U.S.–Sweden 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 Sweden's system. Your employer obtains a U.S. Certificate of Coverage as proof. Beyond 5 years, coverage shifts to Sweden.
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 Sweden credits to reach the 40-quarter (10-year) threshold for a pro-rated U.S. retirement benefit.
The agreement has been in force since 1987.
Pension taxation depends on Sweden's domestic law and the separate U.S.–Sweden 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.
Yes. Sweden's income and premium pensions accrue from the first year with no minimum qualifying period, and both are payable to you in the U.S. at retirement. Keep your Swedish personal identity number and check your record at the Swedish Pensions Agency — the money does not disappear when you leave.