BASIC (09-05)

A. Policy - Benefit Programs Included

The provisions of the agreement that permit people to qualify for benefits based on combined U.S. and Japanese coverage credits apply to the following types of benefits:

• U.S. retirement, survivors and disability benefits. The agreement does not apply to Medicare benefits or Supplemental Security Income payments.

• Japanese retirement, survivors and disability benefits. The agreement does not apply to the Japanese Old-Age Welfare Pension or to other Japanese non-contributory, means-tested allowances paid from general revenues. The agreement also doesn’t apply to the pension system for members of local assemblies, which is a supplemental pension system for local government workers.

B. Policy - Taxes Included

The provisions of the agreement that eliminate dual Social Security coverage and taxes apply to:

• U.S. Social Security taxes (FICA and SECA) including the Medicare portion, and

• Japanese Social Security taxes that finance retirement, survivors and disability benefits and, in some cases, the health insurance program. The agreement doesn’t apply to the National Pension Fund or the Employees’ Pension Fund, which are corporate funds under which both participation and contributions are voluntary (see NOTE in GN 01745.010).

C. Reference

RS 02002.050 through RS 02002.098, Agreement provisions for the elimination of dual coverage and taxation