OAS credits for US residency and employment -

This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
QUESTION:
David:
Re: OAS credits via USA residence and employment in the USA.
According to the "Proclamation Declaring the Agreement on Social Security
Benefits Between Canada and the United States of America," in Force February
9, 1982,
"thousands of Canadians" may be eligible to boost their OAS pensions to 100%
(as I would) if our residency and employment in the USA were to be
acknowledged and given credited for the missing "quarters" to qualify for a
full 40 quarters of OAS benefits.
I'm a dual citizen of Canada and USA.  The following text is from a letter
that I hand delivered on  August 24th, 2003, to: Human Resources Development
Canada, Income Security Programs (OAS), 301 -- 4940 No. 3 Road, Richmond, BC
V6X 3A5
* * * * * *
Problem is, I haven't received an answer to my two request (May, 2003 and
August, 2003. Could be the decision may take many months to filter up to the
decision makers -- or I may be incorrect as to my interpretation. :-(
Please take a look at the Agreement on Social Security Benefits between
Canada and the United States.  If you find my interpretation is valid, that
would be very valuable  information to add to your " Border" Book.
Here's a modified copy of the letter I mailed and hand delivered to the OAS
office.
* * * * * * *
Dear Sir or Madam,
 Re: Application for OAS pension Adjustment (CPP # 412-433-526)
I am currently receiving 22/40th of the regular OAS pension. Have been since
I applied for it in 1992.
While browsing the Internet I discovered the "Proclamation Declaring the
Agreement on Social Security Benefits Between Canada and the United States
of America," in Force February 9, 1982. A printout is enclosed for your
convenience. I also found other references to the same subject in a few
other places. That's why I decided to analyze it. I did. And believe I am
eligible!
Chapter 2 of the Agreement (on page 9 in the printout) says, with words to
the effect, that employment time periods in the USA should be credited 100%
for payment of OAS pensions, if needed. I believe that applies to me.
When my OAS pension was originally calculated in OAS's office in Victoria,
in 1992, the details of this Agreement may have been overlooked: my USA
employment credits were not taken into consideration. That resulted in a
partial pension of 22/40th of the full OAS pension.
The OAS office has access to American Social Security records. Please verify
my claim of more than ten years of employment in the USA. My USA Social
Security number is  374-32-6776.
My first and only request for a pension adjustment based on the above
argument was mailed to the Victoria office on May 30, 2003. To date, I have
not received any reply. It could be that a entry-level clerk may have
discarded my application letter as "not applicable" without allowing their
supervisor to analyze my request and provide me with a yes or no answer.
That's why I am submitting a second request for an adjustment of my OAS
pension.
(1) Analyze the Agreement to ascertain whether or not I am correct in my
belief that I may be eligible for a 100% OAS pension -- based on my American
employment and residency of over 40 quarters, including about 45 months in
the USAF.
(a) If you DON'T believe I am eligible for a 100% pension, then I'll just
drop my effort to gain a pension increase I believe I may be entitled to.
And, I'll be satisfied my application wasn't rejected by someone who didn't
understand the US/Canada Social Security Agreement.
(b) The enclosed Summary of Social Security Agreement, page 3, has a
paragraph warning applicants me that once the pension is started, there will
be no increase in the amount of my pension "based on additional years of
residence in Canada."
However, my application for an adjustment is based on more than ten years of
residency and employment in the USA where I contributed to the U.S. Social
Security Plan.
I believe the clerk who interviewed me in 1992 failed to take that into
account when calculating my pension credits. That paragraph should not be
used to deny my application for an adjustment based on additional USA
employment.
If you confirm my belief that I am eligible for a full pension based on my
USA residence and employment, please advise A.S.A.P.   Thank you for your
kind assistance.
Yours truly,
WXXXXXXXXXXXXXXXXXX
====================================================================
david  ingram replies:
If you wish the quarters  worked in the US applied to your Canadian OAS, you will suffer a financial penalty. Watch out for what you ask for.
(1) Except as otherwise provided in this Article, where a person referred to in Article V(2) is subject to the laws of Canada, or the comprehensive pension plan of a province, during any period of residence in the territory of the United States, that period of residence, in respect of that person, his spouse and dependants who reside with him and who are not employed or self-employed during that period, shall be treated as a period of residence in Canada for the purposes of the Old Age Security Act.
(2) Any calendar quarter during which a spouse or a dependant of a person referred to in Article V(2) is credited with a period of coverage under United States laws shall not be counted as residence in Canada for the purposes of the Old Age Security Act.
(3) Except as otherwise provided in this Article, where a person referred to in Article V(2) is subject to United States laws during any period of residence in the territory of Canada, that period, in respect of that person, his spouse and dependants who reside with him and who are not employed or self-employed during that period, shall not be treated as residence in Canada for the purposes of the Old Age Security Act.
(4) Except as otherwise provided in this Article, periods during which the spouse or dependant referred to in paragraph (3) of this Article is contributing to the Canada Pension Plan or the comprehensive pension plan of a province as a result of employment or self-employment shall be treated as periods of residence in Canada for the purposes of the Old Age Security Act.
(5) Except as otherwise provided in this Article, any person who resides in the United States, is employed in Canada and is subject to the Canada Pension Plan or the comprehensive pension plan of a province shall be credited with one year of residence under the Old Age Security Act for each year of contributions under the Canada Pension Plan or the comprehensive pension plan of a province.
(6) If a person referred to in paragraph (4) or (5) of this Article performs services which are covered as employment or self-employment under United States laws and simultaneously performs other services which are covered as employment or self-employment under the Canada Pension Plan or a comprehensive pension plan of a province, that period of employment or self-employment shall not be treated as a period of residence for the purposes of the Old Age Security Act.
What this all means is that you can only credit your time to Canada or the US.  If you take it away from the US, you will get less money from the US. the money you lose from the US will be more than you were to pick up from Canada. 
Hope this helps.
David Ingram
David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321 
[email protected]
www.centa.com www.david-ingram.com
Disclaimer:  This question has been answered without detailed information or consultation and is to be regarded only as general comment.   Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
This from "ask an income tax and immigration and bankruptcy expert" from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate problems  for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa,  Thailand, Indonesia, Egypt, Antarctica,  Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
income tax wizard wizzard guru advisor specialist consultant taxman  preparer of Alaska,  Alabama,  Arkansas,  Arizona, 
 California,  Colorado, Connecticut,  
Delaware, District of Columbia,  Florida, 
Garland, Georgia,  Hawaii,  Idaho,  Illinois,
  Indiana,  Iowa,  Kansas,  Kentucky, 
 Louisiana,  Maine,  Maryland,  
Massachusetts, Michigan, Minnesota,  
Mississippi,  Missouri,  Montana,  Nebraska,  
Nevada, New Hampshire,  New Jersey, 
New Mexico,New York, North Carolina,  
North Dakota,  Ohio,  Oklahoma,  Oregon. 
Paris,  Rome, Sydney, Australia Hilton
Pennsylvania,  Rhode Island,  Rockwall, 
South Carolina, South Dakota, Tennessee,  
Texas,  Utah, Vermont,  Virginia, 
West Virginia, Wisconsin, Wyoming, 
British Columbia, Alberta, Saskatchewan, 
Manitoba, Ontario, Quebec City, 
New Brunswick, Prince Edward Island, 
Nova Scotia, Newfoundland, Yukon and 
Northwest and Nunavit Territories,  
Mount Vernon, Eumenclaw, Coos Bay 
and Dallas Houston Rockwall Garland 
Texas  Taxman and Tax Guru  and wizzard 
wizard - Your name has been added to our email list because of an enquiry we have received,  we may not answer your question but 
another similar question will be as we lump them.
You may find more answers at www.centa.com
David Ingram of the CEN-TA REALTY  Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/299e6e5d/attachment.htm
---------------------- multipart/alternative attachment--

Trackback

Trackback URL for this entry: http://www.centa.com/trackback.php/UsCaWeekofMon20040112000645.html

No trackback comments for this entry.

0 comments