lump sum social security refund
Posted: Sat Apr 04, 2009 11:42 am
GGS;164275From your link, one of the following exceptions include the following:
[LIST]
You are a citizen of one of the countries listed below, and the worker on whose record your benefits are based lived in the U.S. for at least 10 years or earned at least 40 credits under the U.S. Social Security system. If you are receiving benefits as a dependent or survivor, see additional requirements.
[/LIST]
And the list of countries include India? What is this supposed to mean?
[/quote]
I think if you contribute for 10yrs then you are eligible regardless of citizenship. But if you do not contribute for 10yrs then countries in the list I mentioned above will receive benefits regardless. They can contribute security tax back to their countries. Since countries on that list have similar system in place, they can get reimbursed from their govt. India does not have similar system so we cannot transfer it to India if we stay here for less than 10yrs.
This is generally a problem for people who are on h1b. They cannot stay beyond 6yrs and have to contribute social security without expectations of getting any benefit. Most Indians get GC and then USC so it was never a big issue. Lately with outsourcing companies using h1b it is brought to limelight. Since their workers are not expected to get GC/USC and they do not stay here for longer periods of time, their payments of social security is unfair taxation. I believe it was one of the points during Doha talks.
http://www.rediff.com/money/2006/nov/18india.htm
(Wiki) Social Security and Medicare Taxes
H1B employees have to pay Social Security and Medicare taxes as part of their payroll. Like US citizens, they are eligible to receive Social Security benefits even if they leave the United States, provided they have paid Social Security benefits for at least 10 years.[25] Further, the US has bilateral agreements with several countries to ensure that the time paid into the US Social Security system, even if it is less than 10 years, is taken into account in the foreign country's comparable system and vice versa.