By admin , 31 October 2011

Dutch Social Security for U.S. residents: new procedures

From Brooklyn, New York, correspondent Benno Groeneveld describes a new procedure to apply for Dutch social security benefits from the U.S.

Applying for Dutch social security benefits ("AOW") while living in the United States used to be quite easy: just call or e-mail the "Sociale Verzekeringsbank" (the Dutch Social Security Administration). The agency would send you a form to complete and return, and payments would start rolling into your bank account starting the month you turned 65.

June 2011: new procedures

But things changed in June 2011. Dutch-born residents of the U.S., whether Dutch citizens or not, must now apply for AOW payments through the U.S. Social Security Administration (S.S.A.). The application requires a special form, of course: SSA-2490-BK. Initially, this form could be found on the website of the Social Security Administration (www.socialsecurity.gov). But when I looked recently, I found only a link to an explanation of a treaty between the U.S. and Poland (yes!), not the necessary form.

My best advice is to call the S.S.A. (1-800-772-1213) to request a copy of SSA-2490-BK. You can also visit your local office. To find the office nearest you, check the S.S.A.’s website.

After completing the form, send it to the S.S.A.’s international office in Baltimore or make an appointment to submit it personally at your local S.S.A. office. Appointments can be made through the general S.S.A. help number and, depending on how busy your local office is, may take some time to schedule. In my case, I waited four weeks.

It is useful to know that there is a special procedure for completing this application process: GN 01725.215C. Officials usually appreciate that kind of help, especially for new or unusual procedures. I met with an official who had never heard of this procedure, but the guidelines made the process smooth.

Form SSA-2490-BK can be used to apply for Dutch Social Security payments only, or you can apply for U.S. Social Security payments at the same time. Dutch Social Security payments automatically start in the month you turn 65. U.S. Social Security payments can start at any time between the ages of 62 and 70.

Preventing abuse

According to the Dutch "Sociale Verzekeringsbank," this procedural change will prevent abuse of the system. The bureau will be able to verify an individual’s data from afar (address, marital status, etc.) giving the SVB more certainty that all information is correct.

The new procedure does make the "AOW" application a little more cumbersome. So, make sure to start at least six months before your 65th birthday.

How much will you receive?

In the Netherlands, an individual’s AOW "account" builds up between the ages of 15 and 65. For every year you lived and/or worked in the Netherlands, you are entitled to a payment of 2 percent of the current "AOW" amount distributed to residents of the Netherlands. Nationality doesn’t matter. I know people who left the Old Country a few years after they turned 15 and became U.S. citizens. After their 65th birthday they applied for and now receive a payment (in Euros!) every month.

The Dutch AOW can be paid through a bank account in the Netherlands (monthly, independent of the amount) or through a bank in the U.S. In order to keep expenses low for international bank transactions low, "AOW" payments can also be made every three months or even once a year, in December.

If you still have questions: call the S.V.B.’s foreign office in Groningen. When calling from the U.S. the number is 011-31-50-316-9010. Or send an e-mail through the website. In my experience, S.V.B. employees are very helpful and they react quickly to e-mails.

Benno Groeneveld, Brooklyn, NY, October 2011.

This article is based on information from the Sociale Verzekerinsgsbank and my own experience. I am not a lawyer or an official spokesperson and I am not responsible for any mistakes in this article. This is only a guideline. Individual cases may be different. When in doubt, or for answers to specific questions: contact the SVB.

Topic
dutchusa
By Guus , 29 October 2011

Above the ground

Last weekend I had to get used to being back on the East Coast -- Friday I went to bed at 2.00 am, and Saturday after midnight again.

I must have been sleepy later in the week also. I took the metro in the morning, and all of a sudden we were above ground! That was quite a surprise. I had taken the wrong line (blue instead of orange), and I had to switch trains back at Arlington Cemetery.

Yesterday there were drinks and bitterballen at Mackey's bar, a few minutes from our house. That was a lot of fun. Yesterday we also heard that we can stay a little longer in our temporary apartment which is nice because we still have quite some unpacking to do. This weekend we'll go to the new place and tackle some more boxes.

Topic
travelling
By admin , 24 October 2011

The end of dual citizenship?

A new law is currently under consideration by the Dutch government that could spell the end of dual citizenship for Dutch citizens, including Dutch-Americans in the U.S. The law, which is now being reviewed by the Raad van State, will end several widely used exemptions to the general rule that Dutch citizens cannot claim other nationalities without losing their Dutch citizenship.

This will impact thousands of Dutch-Americans and Dutch citizens living in other countries outside the Kingdom of the Netherlands. People who already have dual Dutch citizenship will not be affected, but for people who had hoped to gain both American and Dutch nationality this law is an unwelcome development. With the new proposal, Minister Donner and the Dutch cabinet aim to reduce the number of dual citizens, and to increase the barriers for immigration to the Netherlands.

No more dual citizenship through marriage to a U.S. citizen

The current law on 'Nederlanderschap' has as a general rule that dual citizenship is not allowed. However, there is an important exception for people who gain citizenship through marriage. For example, if a Dutch national immigrates to the USA and marries an American partner, the Dutch national is allowed to keep the Dutch nationality while also becoming an American citizen. This exception was created in 2003 after extensive lobbying by Dutch expatriates and immigrants. U.S. law permits American citizens to hold other nationalities.

Dutch nationality for children born in the U.S.

Children born to a Dutch parent in the United States can currently maintain their Dutch citizenship when turning 18, due to exception "16-2e". This automatic exception will disappear as well, but it appears that maintaining Dutch citizenship for minors is possible as long as their passports are renewed on time.

Work in progress

The proposal, the integral text of which can be found here, is currently under consideration. After a well-visited discussion evening in New York City last week, several Dutch expat organizations have organized an on-line petition against the proposal (in Dutch).

More information:

- Proposed new Dutch nationality law (mirror copy)
- On-line petition against the new proposal

This is a proposed law. For the best information on current law on Dutch citizenship we advice you to contact your nearest Dutch consulate, Dutch embassy or a law firm.

Note: this article was updated to correct a mistake about minors maintaining Dutch citizenship.

Topic
dutchusa
By Guus , 22 October 2011

Back in DC

I arrived in DC last night, and two hours later the Zane family arrived from New Jersey. We had a nice evening together. They are staying in our D.C. apartment; we went for the first time to our new apartment in Arlington.

I woke up at 7.30 am, which felt quite early after a week on the East Coast and after a late night yesterday.

Topic
dailylife
By Guus , 20 October 2011

Financial Crisis Inquiry Report

The Financial Crisis Inquiry Report is the official report the congressional committee that investigated the causes of the financial crisis in 2007-2010. The report reads surprisingly well, but is disappointing when it comes to analysis and finding root causes. We bought a copy of the book in the bookstore at the IMF on a Sunday afternoon in D.C. and I read it while we lived on 2400 M Street.

On the plus side: the book is well structured. Many of the developments during the crisis require an understanding of derivatives such as CDOs and mortgage backed securities, and the book does a good job explaining how they work. Unfortunately, the majority report is written as if the authors don’t like financial markets. There is a constant tendency to frame things in a negative light, such as when describing securization, with suspicion. Also, if concepts like derivatives or structured finance are “arcane” to the authors, maybe someone else should have written the report.

Bi-partisan and not digging deep enough

The main beef I have with the report is that it completely fails to bridge the bipartisan gap in Congress and gives a very one-side (Democratic) view of things. The report was written by a 10-member committee; 6 Democrats and 4 Republicans. No consensus was reached, and the 6 Democratic members voted in favor of the main text, the 4 Republicans against.

This matters a great deal, for example when discussing the influence of the government’s home ownership policies and programs such as HUD. It would have been interesting to know if there was a strong correlation between affordable housing programs and the increase of sub-prime mortgages. The main text makes a reasonable case that HUD was not a major factor in the crisis, but as so much of the report it remains anecdotal. Instead of simply saying ‘no’ (the majority) or ‘yes’ (the dissenters), a real discussion based on scientific analysis would have contributed much more to understanding the fundamentals behind the crisis. In general, the report is good in describing what happened, but sorely deficient in digging deeper and trying to answer ‘why’. Obviously, understand the root causes is essential for framing policies that can help prevent the next crisis.

After the introduction, I read the chapters written by the 4 dissenting members first. I liked their treatment of frequently debated topics such as “should we have saved Lehman”. The 4th dissenter, who is associated with the American Enterprise Institute, wrote a standalone chapter where he blamed the government policies on affordable housing. Again – it’s interesting to see these opinions, disappointing that there was no effort to reach an (academic) consensus. In general, the report is superficial and often reads as a partisan attack on “deregulation” and “complex finance”.

Still, it was an enjoyable read, almost like a thriller. The demise of Bear Stearns makes for fascinating reading. When the crisis was unfolding I listened to NPR a lot and often I'd hear the voice of Kai Ryssdal, the presenter of Marketplace in my head while reading the report.

The report made me understand something that I had wondered about before -- the unwillingness of many lenders to lend during the crisis, even when they offered good collateral. The problem for some lenders is that they are not allowed to own certain collateral, so when the counterparty disappears they may end up owning and having to sell the collateral immediately, at fire sale prices. The influence of this also surprised the SEC, as the report explains.

A difficult job for regulators

The chapters about the regulators were quite interesting. First of all, it is silly that financial institutions can shop around for favorable regulators. The regulators had to make difficult choices during the crisis (and before the crisis). What is in the best interest of the country? Never ever allow any risk and thus dramatically reducing innovation and profitability? It explained that moral hazard was a strong motivator for the regulators to letting Lehman fail. Similar trade-offs were made by Congress. The decision to create hybrid public/private companies such as Freddie Mac and Fanny Mae created huge losses to the taxpayer during the crisis (estimates range to $400 billion). However, arguably they also helped to create a better mortgage market in the years before that. Again, would have been quite interesting to read some analysis of the economics and politics of those decisions.

My goals in reading the report were two-fold: learn more details about the crisis, and understand the root causes. The book helps with the first goal, but sadly fails in the second.

By admin , 19 October 2011

New York Was Always a Global City: Why Seventeenth-Century New Amsterdam Matters Today

The driving force behind America’s founding was the expansion of trade and commerce. In those formative years of the 17th century Atlantic World, New Amsterdam was at the center of that trade. Dr. Maika will identify key elements that made early New Amsterdam (New York) a global city and offer observations about its economy, government and society that made New York City’s early history especially relevant today.