Under the U.S. Social Security program, workers and their employers, as well as the self-employed, must pay Social Security taxes. Under the Swedish system, employers (but not employees) and the self-employed must pay taxes on social security. Prior to the agreement, employers and the self-employed could, in certain circumstances, be required to pay social security taxes, both in the United States and Sweden, for the same work. The Social Security Agreement between Canada and Sweden entered into force on January 1, 1986. Sweden has a new pension system that covers people born in 1938 or later. People born in 1937 or earlier continue to receive their benefits only under the old system. Persons born between 1938 and 1953 receive part of their benefits under the old system and part under the new system. People born in 1954 or later receive their benefits only under the new system. An agreement between the United States and Sweden, which will enter into force on 1 January 1987, will improve social security protection for people who work or have worked in both countries. It helps many people who, without the agreement, would not be entitled to monthly retirement, disability or survivors` benefits under the social security system of one or both countries. It also helps people who would otherwise have to pay social security taxes to the two countries with the same incomes.
If you have Social Security credits in the United States and Sweden, you may be entitled to benefits from one or two countries. If you meet all the essential requirements of a country`s system, you regularly get an advantage from that country. If you don`t meet the essential requirements, the agreement can help you qualify for a performance, as explained below. If you are a widow, widower or child of someone who has contributed to both countries` pension programs, this agreement can help you qualify for: although the agreement between the United States and Sweden allows the Social Security Authority to count your Swedish ATP credits in order to help you qualify for retirement benefits, Disability or survival in the United States, the agreement does not cover Medicare benefits. As a result, we cannot count your credits in Sweden to benefit from free Medicare health insurance. To claim US or Swedish benefits under the agreement, follow the instructions in the “Benefit entitlements” section.