WASHINGTON (Kyodo) Japan and the United States signed a treaty Thursday so company employees in either nation won't have to make double payments on pension and social insurance premiums when they are assigned to offices in the other's territory.
Ambassador to the U.S. Ryozo Kato and Jo Anne Barnhart, commissioner of the U.S. Social Security Administration, signed the treaty at the U.S. State Department.
The treaty is to go into force by March 2006. A basic accord on the treaty was reached last summer.
At present, employees of Japanese companies assigned to offices in the U.S. have to participate in the U.S. pension and health insurance systems in addition to paying premiums for the Japanese systems. Employees of U.S. companies transferred to Japan must also pay into both systems.
The treaty will require such employees to pay premiums only to their own government, provided the period of their assignment is five years or less.
Employees of Japanese and U.S. companies will be able to include the pension premiums they pay while abroad in the amount required for them to receive benefits when they retire.
The treaty is expected to promote personnel exchanges between the two countries by reducing the social security payment burden of companies and employees, Japanese officials said.