The Hungarian-U.S. social security agreement, signed by Hungarian Minister of Human Capacities Zoltán Balog and U.S. Ambassador to Budapest Colleen Bell on 3 February 2015, came into effect on 1 September 2016. The agreement will favorably affect many Hungarian and U.S. citizens.

The agreement regulates the availability of services, their conditions, establishment of amounts and the modes of transfer. Citizens moving between the two countries will be exempt from simultaneously paying contributions in both countries. The agreement also provides those concerned with eligibility for social security services when this would not be possible based solely on the legislation of one of the countries.

For postings abroad of up to five years, employees will be covered by the social security regulations of the sending country; this is also expected to boost bilateral economic relations. The agreement also regulates allowances for disabled persons.

Yet another advantage for Hungarian citizens is that the relevant Hungarian authorities will be entitled to assist citizens in claiming U.S. benefits, such as submitting the required forms in their home country. U.S. citizens residing in Hungary will benefit from simplified pension transfers.

(MTI)