Entry into force of the Social Security Agreement between Romania and the United States of America

The Ministry of Foreign Affairs confirmed, through Order No. 1076 published in the Official Gazette of Romania, Part I, No. 433 of May 22, 2026, that the conditions for the entry into force of the Social Security Agreement between Romania and the United States of America have been fulfilled, establishing the legal framework for the coordination of the social security systems of the two states.

Accordingly, the Agreement, signed on 23 March 2023, together with the related Administrative Arrangement approved by Government Decision no. 650/2024, will enter into force on 1 September 2026.

The Agreement introduces rules for determining the applicable social security system in cross-border situations and ensures the recognition of insurance periods across both countries.

Key provisions of the Agreement

• Aggregation of insurance periods (totalization) – allows individuals to combine periods of coverage completed in Romania and the United States to determine eligibility for old-age, disability and survivors’ benefits.
• Avoidance of double social security contributions – ensures that individuals are not required to pay mandatory contributions in both countries for the same activity by applying clear rules on applicable legislation.
• Mutual recognition and pro-rata payment of benefits – each state calculates and pays benefits proportionally to the periods of insurance completed under its legislation.
• Equal treatment – guarantees that Romanian and US nationals are treated equally with respect to social security rights and obligations.
• Applicable social security legislation rule – establishes conflict-of-law rules ensuring that individuals are subject to only one social security system at a given time.
• Secondment provisions – allows employees temporarily assigned to the other country to remain insured in their home social security system for a defined period, subject to obtaining a certificate of coverage.
• Administrative cooperation – provides mechanisms for cooperation between institutions, including exchange of information, verification of insurance periods and processing of benefit claims.
• Export of benefits – enables beneficiaries to receive certain social security benefits even if they reside in the other contracting state.

Impact on individuals and employers

For individuals, the Agreement enables the aggregation of insurance periods, which may facilitate access to pension benefits and ensure continuity of social security coverage in cross-border situations.

For employers, the Agreement provides greater clarity on applicable social security obligations and supports the management of international assignments by reducing exposure to double contributions.

For more details, please consult the Official Gazette website.

The EY team remains at your disposal for clarifications and further details regarding the impact of these changes.