The Social Security Administration (SSA) and the Office of the U.S. Trade Representative (USTR) point out that there is a legal barrier to an agreement. They assert that the United States can only enter into « a totalization agreement with a foreign country with a social security system. » According to the United States, India`s current social security system does not appear to meet this criterion. Currently, India`s social security system is actually a contingency fund or mandatory savings plan, which is available as a lump sum payment and does not meet the U.S. regular benefit criteria. A simple reason why the United States does not sign the agreement is that it does not want to lose free money. The signed agreement is hosted on the ministry`s website and on the website of the Worker`s Provident Organization for stakeholder information, so that they can obtain coverage certificates in order to avoid double social security contributions. A Social Security Agreement (SSA) refers to an agreement between two countries that helps their international mobile workers in different ways, as shown below: until now, India had signed totalisation agreements with several countries (currently with 14 countries), many of them in Europe. But a similar totalization agreement with the United States has arrived, but with little success. The United States has also signed the totalization agreements with 24 countries. India has been trying to sign such an agreement with the United States since 2007. The United States finally agreed to discuss the annoying issue of the Social Security tax, a first step toward a « totalization agreement » that could allow Indian professionals working in the United States to receive their social security deposits when their work visas expire, three officials said.
« Once signed, the agreement would benefit workers in both countries and ensure equal treatment, » Singla said in a statement. Indian factories pay taxes on their income in the United States. Either they can receive all social security benefits after eight years, or their work visas are extended beyond 10 years so they are not affected and receive all benefits on an equal footing with U.S. citizens, he added. The idea of concluding pacts on social security programmes with the BRICS was discussed at the bricS labour ministers` meetings in Geneva on 9 June 2016 and 27-28 September 2016 in New Delhi. The possibility of concluding social security agreements between the BRICS countries is also mentioned in the Goa declaration of the 8th BRICS Summit of Heads of State and Government.