by AMAC Certified Social Security Advisor Russell Gloor Association of Mature American Citizens Ask Rusty - Do my Canadian earnings count? Dear Rusty: I am a 62 year old Canadian holding a green card and I have lived in the US for nearly twenty-three years. For 19 years prior I contributed to the Canada Pension Plan (CPP) which is the equivalent of US Social Security. I am contemplating retirement in the US and have been told that I can draw my old age pension from either the US, or from Canada, but I cannot draw from both. My 19 years of contributions to the Canadian Pension Plan are not accounted for in the calculation of my U.S. SS benefits. Conversations with the U.S. Social Security office suggested that my contributions to the CPP would “probably” be applied to my U.S. pension upon application for benefits. However, the individual I spoke with was not sure how that would work. Do you know the process for having my Canadian earnings transferred to my U.S. SS account and how I might find out what my combined benefits will be? Signed: Retiring CanadianDear Retiring Canadian: Allow me to clarify how things work under the bi-lateral agreement between the U.S. and Canada. Although you worked and contributed to CPP while living in Canada, your earnings in Canada do not count when computing your U.S. Social Security benefits (nor do your U.S. earnings contribute to your CPP benefit entitlement). Although the bi-lateral US/Canada agreement permits earnings credits from both countries to be combined to gain eligibility for benefits, computation of benefit amounts in each country uses only dollars earned in-country. Thus, your U.S. entitlement is based only on your U.S. earnings.Because of your years contributing to the Canadian program, you are also eligible to separately collect a CPP pension, and you can apply for your CPP pension through your local U.S. Social Security office by submitting SSA form CDN-USA1. Your local SS office can provide the correct form and needed guidance to apply for your CPP benefits. You should be aware, however, that collecting your CPP pension will impact the amount of your U.S. benefit because of a U.S. regulation known as the Windfall Elimination Provision (WEP). WEP reduces the U.S. Social Security benefit for anyone who has a pension earned separately without contributing to Social Security (that includes some U.S. state & local ...
