Pension cases covered by agreements

Social Security Agreement between Hungary and Canada

Related forms (12)

WHEN DID THE HUNGARIAN-CANADIAN SOCIAL SECURITY AGREEMENT ENTER INTO FORCE?

The Hungarian-Canadian Social Security Agreement (hereinafter: the Agreement) has been effective since 1 October 2003.

BENEFITS UNDER THE AGREEMENT FOR WHICH THE PENSION DETERMINATION BODIES ARE RESPONSIBLE

In Hungary:

  • old age pension,
  • survivor's pension,
  • work accident-related survivor’s pension

In Canada, you can claim benefits under the following legislation:

  • the Old Age Security Act and the regulations made thereunder,
  • the Canada Pension Plan Act and the regulations made thereunder.

THE FOLLOWING PERSONS MAY APPLY FOR THE ABOVE BENEFITS UNDER THE AGREEMENT

Under the Agreement, a pension may be claimed by persons who are or have been subject to the legislation of either Hungary or Canada, except that, in the case of survivors' pensions, proof of membership of the legislation of either country must be provided in respect of the deceased insured person.

Persons who are or have been subject to the legislation of the Province of Quebec in Canada may claim a pension under the Hungarian-Quebec Agreement rather than the Agreement.

RULES ON THE PAYMENT OF CONTRIBUTIONS

The obligation to pay contributions applies, as a general rule, in the country where the person concerned earns the income.

For posted workers, the country in which the posting employer is established is the country where contributions are payable. If a self-employed person pursues activity in a country other than the country of domicile, they remain liable to pay contributions in the country of domicile.

The provisions of the Agreement do not apply to members of diplomatic missions and consular posts.

In order to determine the existence of insurance, i.e. the obligation to pay contributions, the request must be submitted to the government office acting as the competent health insurance administration body for the place of business of the employer in Hungary.

SUBMITTING A CLAIM FOR PENSION BENEFITS

To claim Hungarian benefit, the following forms must be submitted, corresponding to the benefit applied for:

  • for a claim for old age pension benefit, the form called “In the case of a claim for international old-age pension and other benefits in own right for service periods acquired in a contracting party of the agreement” 
  • for a claim for survivor’s pension, depending on the type of claim, the following forms are relevant:
    • for widow(er)’s pension or an work accident-related widow(er)’s pension “Claim for widow(er)'s pension  or work accident-related widow(er)'s pension under the scope of Act LXXXI of 1997, Act LXXXIII of 1997 and social policy or social security agreement” or
    • for orphan's allowance or a work accident-related orphan's allowance the so called „Claim for orphan's allowance or work accident-related orphan's allowance under the scope of Act LXXXI of 1997, Act LXXXIII of 1997 and social policy or social security agreement” or
    • for parental pension or work accident-related parental pension „Claim for parential pension or work accident-related parential pension under the scope of Act LXXXI of 1997, Act LXXXIII of 1997 and social policy or social security agreement”

To apply for a Canadian pension, the following forms must be submitted in addition to the Hungarian forms, according to the type of benefit requested:

  • for old age and survivor’s pensions, the GE-CAN 1,
  • for Canadian child benefit GE-CAN 3.

The forms required for submitting a claim can be obtained from the pension insurance institutions or downloaded from the "Related forms" menu point.

The application form must be accompanied by available documents relating to legal residence and employment in Canada.

The claim can be submitted in person or by post.

It may be submitted in person at the customer service of the government office of the capital or county according to the place of residence or stay.

If it is submitted by post, the envelope must be addressed to the Government Office of the Capital City Budapest and marked with the uniform postal address 1916 Budapest.

The claim may be submitted by the applicant's legal representative (guardian) or by their authorised representative, accompanied by a document proving the representation.

In the case of an application for a Hungarian survivor’s benefit, if a survivor's pension has already been established in relation to the deceased insured person or if the application is for the revival of a survivor's pension previously paid, the claim may also be submitted at the customer service of the Pension Payment Directorate of the Hungarian State Treasury (1139 Budapest Váci út 73.).

The date of submission of the claim in Canada is also the date on which the claim is submitted to the Hungarian pension insurance body.

The application, the documents attached by the applicant and the certificate of period of service recognised under Hungarian legislation will be forwarded by the Government Office of the Capital City Budapest to International Operations - AB Service Canada (P. O. Box 2710, Main Station Edmonton, Alberta T5J  4C2 Canada) the pension insurance body responsible for the assessment of the Canadian pension.

In the case of Canadian residence:

If you have any questions about how to apply for a Canadian pension or if you are eligible for a Canadian pension, it is advisable to contact the Canadian pension administration body in your place of residence.

If you are living in Canada and claiming a pension in Hungary, you may submit your claim to the competent Canadian pension insurance body by completing the

  • form CA-HU 1.1 for old age pension,
  • and form CA-HU 1.2 for a survivor's pension.

The contact details of the Central Pension Body are:

International Operations - AB Service Canada

Address: P. O. Box 2710, Main Station

Edmonton, Alberta T5J 4C2 Canada

Fax: + 1 780 495 2263

website: www.canada.ca/en/services/benefits/publicpensions.html

The application submitted in Canada will be forwarded by the Canadian body to the Government Office of the Capital City Budapest, together with proof of the periods of residence and insurance completed there.

ASSESSMENT OF PENSION CLAIMS

If the entitlement for the benefit applied for by the applicant exists on the basis of the Hungarian service periods, the residence and insurance periods certified by the Canadian Pension Administration Body shall not be taken into account for the determination of the Hungarian pension.

The minimum periods required for a Hungarian pension are as follows:

  • 15 years of service period for old age pension,
  • 40 years of eligibility period for women's preferential pension,
  • in the case of a survivor's pension, the service period required for the age of the deceased insured person.

If the entitlement to a benefit cannot be established solely on the basis of the Hungarian service period, the period certified by the Canadian pension administration body shall also be taken into account for the purpose of determining the pension as if it had been completed under Hungarian legislation, provided that they do not cover the same period. The Agreement precludes the possibility of double insurance, but periods of Hungarian service and Canadian residence or insurance prior to its entry into force may overlap. These periods may be taken into account only once when applying the aggregation rule.

If the applicant has at least 15 years of service period required for a Hungarian pension only after aggregating the periods of insurance, the amount of the pension is calculated on the basis of the periods of insurance certified by the Hungarian and Canadian bodies. In the case of a survivor's pension, the period of insurance in Canada certified by the Canadian body shall be taken into account if the deceased insured person does not have the period of service in Hungary corresponding to their age.

The pension to be determined is the proportion of the insurance periods completed under Hungarian legislation in relation to the total insurance periods. The amount of the Hungarian pension is determined solely on the basis of earnings and income in Hungary.

When calculating the Hungarian pension by taking into account the periods certified by the Canadian body, the Canadian periods are taken into account in the following order:

  • the duration of the insurance period covered by Canadian contributions,
  • if, after the contribution period has been taken into account, there is no entitlement to an old age pension, the period of legal residence in Canada.

If the entitlement to a Hungarian pension cannot be established by taking into account the periods of insurance and residence in Canada, periods of insurance completed in a third country with which both Hungary and Canada have concluded a social security agreement and whose provisions cover the aggregation of insurance periods shall also be taken into account.

The following periods of insurance completed in third countries may be taken into account for the assessment of entitlement to a Hungarian pension:

  • All EU Member States and EEA States, the United Kingdom and Switzerland with the exception of Liechtenstein,
  • United States of America, Australia, North-Macedonia, India, Japan, Republic of Korea, Republic of Serbia, Republic of Türkiye.

If the service period in Hungary is less than one year, no Hungarian pension can be established.

PAYMENT OF PENSION BENEFITS

Pension benefits are paid directly to the beneficiary in accordance with the legislation of the country that established them. The amount of the established benefit shall remain unchanged for the beneficiary living in the territory of the other country.

The established Hungarian benefits are paid by the Pension Payment Directorate of the Hungarian State Treasury (1139 Budapest, Váci út 73., postal address: 1820 Budapest), detailed information on which can be found in the information "Payment options for  beneficiaries living abroad".