bikkle wrote:30% of wages eyed for pensions

A report says longevity and the low birthrate will cut deeper into monthly salaries by 2025.
Pension fund payments, which are currently set at 17.35 percent of monthly salary-and shared equally by employer and employed-will have to be raised to 31.9 percent if the current level of service is to be maintained.

cstaylor wrote:...in the U.S., H-1B visa holders paid the payroll tax (Social Security), but were not eligible to receive benefits from the program... so American companies got cheap labor, and Social Security got a shot in the arm.

Social welfare agreement signed
http://www.terrie.com

After years of discussion, the Japan and USA have signed
an agreement that allows nationals of one country working
in the other to gain credits for their social welfare
contributions. Readers may remember that we raised this
issue about 6 months ago, where a person working for years
in Japan then returning home, would not be able to gain
credit for a pension program in either country, despite
having paid substantial contributions.

According to the Nikkei, the new program allows US
nationals in Japan and Japanese nationals in the USA to
stay out of the host country's social welfare contribution
program for 5 years, and instead contribute to their home
country program. If they plan to reside in the host country
for longer than 5 years, then contributions move to the
program in the country of residence, and are also
aggregatable once the person returns home. ***Ed: We haven't
been able to review all aspects of this new harmonization
program, but it sounds like it goes a long way to fixing the
inequities for US citizens in Japan. Now we wonder just when
Japan will move on its talks with other countries?**
(Source: TT commentary from nikkei.co.jp, Feb 20, 2004)

http://www.nni.nikkei.co.jp/AC/TNKS/Nni20040219D19JFF02.htm
[Subscription required]

Taro Toporific wrote:

cstaylor wrote:...in the U.S., H-1B visa holders paid the payroll tax (Social Security), but were not eligible to receive benefits from the program... so American companies got cheap labor, and Social Security got a shot in the arm.

I just about had a heart attack upon seeing this in Terrie's Take" this morning and as a public service I will quote it in full. (Terrie and I used to work together as fresh-off-the-plane FGs so I figure he'll be ok withthe full quote.)

T E R R I E 'S T A K E
A weekly roundup of news & information from Terrie Lloyd. http://www.terrie.com
General Edition Sunday, 22th February, 2004 Issue No. 267

Social welfare agreement signed
http://www.terrie.com

After years of discussion, the Japan and USA have signed
an agreement that allows nationals of one country working
in the other to gain credits for their social welfare
contributions. Readers may remember that we raised this
issue about 6 months ago, where a person working for years
in Japan then returning home, would not be able to gain
credit for a pension program in either country, despite
having paid substantial contributions.

According to the Nikkei, the new program allows US
nationals in Japan and Japanese nationals in the USA to
stay out of the host country's social welfare contribution
program for 5 years, and instead contribute to their home
country program. If they plan to reside in the host country
for longer than 5 years, then contributions move to the
program in the country of residence, and are also
aggregatable once the person returns home. ***Ed: We haven't
been able to review all aspects of this new harmonization
program, but it sounds like it goes a long way to fixing the
inequities for US citizens in Japan. Now we wonder just when
Japan will move on its talks with other countries?**
(Source: TT commentary from nikkei.co.jp, Feb 20, 2004)

http://www.nni.nikkei.co.jp/AC/TNKS/Nni20040219D19JFF02.htm
[Subscription required]

Big Booger wrote:

Taro Toporific wrote:.
...the new program allows US nationals in Japan and Japanese nationals in the USA to stay out of the host country's social welfare contribution program for 5 years, and instead contribute to their home country program. If they plan to reside in the host country for longer than 5 years, then contributions move to the program in the country of residence, and are also aggregatable once the person returns home.

So how do you go about setting this up? Any forms to fill out? Notify the employer? etc...

American Embassy wrote:Q: Since the U.S. and Japan signed a Social Security Totalization Agreement, would I have to give up all of my Japanese social security benefits in order to qualify for U.S. Medicare benefits? I think I only need a few more years of work in the U.S. to qualify for Medicare there, can I use part of my Japanese years to make up the total?

Answer: You do not have to give up your benefits in Japan. However, you cannot use your benefits in Japan to qualify for Medicare in the U.S., as there are no Medicare benefits covered under any proposed Totalization Agreement. Please refer to SSA regulation GN 01701.130A.

Q: If there is no way I can qualify for Medicare in the U.S.....