Washington, D.C. – The Armenian National Committee of America (ANCA) today called upon the Social Security Administration to undertake negotiations with the Republic of Armenia toward the implementation of a Social Security Totalization Agreement that would clarify the obligations and entitlements of workers who divide their careers between the United States and Armenia.

In a July 3rd letter to the Social Security Administration Commissioner Jo Anne B. Barnhart, ANCA Executive Director Aram Hamparian noted that such an agreement, “will promote closer U.S.-Armenia commercial relations, to the benefit of American citizens and our nation’s foreign policy toward Armenia and the surrounding region. Hamparian added that, Americans working in Armenia would specifically benefit in the areas of retirement, disability, and survivor benefits, all crucial to creating a favorable environment for expanded bilateral economic ties.

The U.S. currently has a Social Security Totalization agreement in force with several countries including: Australia, Austria, Belgium, Canada, Chile, Finland, France, Germany, Greece, Ireland, Italy, Korea, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. Agreements are currently being negotiated with Argentina and Japan. These agreements 1) relieve the employer and employee from double social security tax with respect to the same employment, and; 2) “Totalize” the employee’s social security tax paid to both countries in order to receive the combined benefits in only one country. A Totalization agreement does not permit an employee to avoid social security tax in both countries; rather, it merely allows the employee to pay tax to either one country or the other.

The United States and the Republic of Armenia have already negotiated a broad range of treaties, including on Economic and Technical Cooperation; Finance; Investment; Peace Corps; Postal Matters, Scientific Cooperation, and; Trade. In addition to a Social Security Totalization Agreement, the ANCA is encouraging the Administration to negotiate a bilateral tax treaty to eliminate dual taxation, a Trade and Investment Framework Agreement, and, eventually, a U.S.-Armenia Free Trade Agreement.