Canada's social security agreement with India came into force on August 1.
The agreement coordinates the pension benefits and contributions of those who have either lived or worked in both India and Canada, and will align the the operation of Canada's Old Age Security and Canada Pension Plan programs with comparable programs in India. For example, the agreement allows someone who has lived in Canada and also paid into India's Employees' Pension Scheme (EPS) to qualify for corresponding old age, disability, and survivor benefits.
The new system will also allow Indian companies who send employees to work temporarily in Canada to keep contributing to their domestic pension scheme while being exempted from the Canada Pension Plan. The reverse will be true for Canadian firms who send their employees to work temporarily in India; they will not be required to contribute to comparable Indian pension programs for the same work.
In a statement released last week, the Canadian government said the agreement will result in substantial savings and increase the economic competitiveness of Canadian and Indian companies operating in each other's territory.
"Our Government is committed to ensuring the retirement security of Canadians whether they have lived or worked in Canada or abroad," commented Pierre Poilievre, Minister of Employment and Social Development. "This agreement demonstrates the continued spirit of partnership and collaboration between our two countries and recognizes the valuable contribution of Indo-Canadians in making Canada stronger."
