Agreement on social security between canada and the united states

Agreement signed at Ottawa March 11, 1981, entered into force August 1, 1984; as amended by a supplementary agreement signed at Ottawa May 10, 1983, entered into force August 1, 1984, and by a second supplementary agreement signed at Ottawa May 28, 1996, entered into force October 1, 1997.

Administrative arrangement signed at Ottawa May 22, 1981, entered into force August 1, 1984;
as amended by a supplementary agreement signed at Ottawa May 10, 1983, entered into force August 1, 1984.
See also the Understanding between the United States of America and the Province of Quebec on Social Security.

Contents

AGREEMENT BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND
THE GOVERNMENT OF CANADA
WITH RESPECT TO SOCIAL SECURITY

The Government of the United States of America and the Government of Canada,

Resolved to co-operate in the field of social security,

Have decided to conclude an agreement for this purpose, and,

Have agreed as follows:

PART I

GENERAL PROVISIONS

ARTICLE I

For the purpose of this Agreement:

1. "Territory" means,

as regards the United States, the States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa and the Northern Mariana Islands, and

as regards Canada, the territory of Canada;

1. "National" means,

as regards the United States, a national of the United States as defined in Section 101, Immigration and Nationality Act of 1952, as amended, and as regards Canada, a citizen of Canada;

the laws and regulations specified in Article II;

1. "Competent Authority" means,

as regards the United States, the Commissioner of Social Security, and

as regards Canada, the Minister or Ministers of the Crown responsible for the administration of the laws specified in Article II(1)(b);

as regards the United States, the Social Security Administration, and

as regards Canada, for all matters other than those related to contributions: the Department of Employment and Immigration (designated by Human Resources Development); for matters related to contributions: the Department of National Revenue;

1. "Period of coverage" means,

a period of payment of contributions or a period of earnings from employment or self-employment, as defined or recognized as a period of coverage by the laws under which such period has been completed, or any similar period insofar as it is recognized by such laws as equivalent to a period of coverage; a period of residence shall not be recognized as a period of coverage;

1. "Benefit" means,

any benefit provided for in the laws of either Contracting State;

1. "Stateless person" means,

a person defined as a stateless person in Article 1 of the Convention Relating to the Status of Stateless Persons dated September 28, 1954;

1. "Refugee" means, a person defined as a refugee in Article 1 of the Convention Relating to the Status of Refugees dated July 28, 1951, and the Protocol to that Convention dated January 31, 1967;
2. "Government of Canada" means the Government in its capacity as representative of Her Majesty the Queen in right of Canada;

ARTICLE II

For the purpose of this Agreement, the applicable laws are:

As regards the United States, the laws governing the Federal Old-Age, Survivors and Disability Insurance Program:

1. Title II of the Social Security Act and regulations pertaining thereto, except sections 226, 226A and 228 of that title and regulations pertaining to those sections, and

1. Chapter 2 and Chapter 21 of the Internal Revenue Code of 1986 and regulations pertaining to those chapters;
the Old Age Security Act and regulations made thereunder, and

ARTICLE III

Unless otherwise provided, this Agreement shall apply to:

nationals of either Contracting State,

ARTICLE IV

Unless otherwise provided in this Agreement, the persons designated in Article III (a), (b), (c) or (d) who reside in the territory of either Contracting State shall, in the application of the laws of a Contracting State, receive equal treatment, with respect to the payment of benefits, with the nationals of that Contracting State.

PART II

PROVISIONS ON COVERAGE

ARTICLE V

Except as otherwise provided in this Article, an employed person who works in the territory of one of the Contracting States shall, in respect of that work, be subject to the laws of only that Contracting State.

b. For the purpose of subparagraph (a), where a person is required to work in the territory of the other Contracting State for intermittent periods of short duration, each such period shall be considered a separate period of work.

c. With the prior mutual consent of the Competent Authorities of the Contracting States, subparagraph (a) shall also apply:

where the employer does not have a place of business in the territory of the first Contracting State, or

a person in the Government service of one Contracting State who is sent to work within the territory of the other Contracting State shall be subject to the laws of only the first Contracting State in respect of that service;

c. For the purpose of this paragraph, "Government service" means,

as regards the United States, service in the employ of the Government of the United States or any instrumentality thereof;

ARTICLE VI

Except as otherwise provided in this Article, where a person referred to in Article V(2) is subject to the laws of Canada, or the comprehensive pension plan of a province, during any period of residence in the territory of the United States, that period of residence, in respect of that person, his spouse and dependants who reside with him and who are not employed or self-employed during that period, shall be treated as a period of residence in Canada for the purposes of the Old Age Security Act.

PART III

PROVISIONS ON BENEFITS

Chapter 1

PROVISIONS APPLICABLE TO THE UNITED STATES

ARTICLE VII

Where a person has completed at least six quarters of coverage under United States laws, but does not have sufficient quarters of coverage to satisfy the requirements for entitlement to benefits under United States laws, periods of coverage completed under the Canada Pension Plan shall be taken into account to the extent they do not coincide with calendar quarters already credited as quarters of coverage under United States laws.

Chapter 2

PROVISIONS APPLICABLE TO CANADA

ARTICLE VIII

(a) If a person is not entitled to the payment of a benefit because he or she has not accumulated sufficient periods of residence under the Old Age Security Act, or periods of coverage under the Canada Pension Plan, the entitlement of that person to the payment of that benefit shall, subject to sub-paragraph (1)(b), be determined by totalizing these periods and those specified in paragraph (2), provided that the periods do not overlap. (b) In the application of sub-paragraph (1)(a) of this Article to the Old Age Security Act:
only periods of residence in Canada completed on or after January 1, 1952, including periods deemed as such under Article VI of this Agreement, shall be taken into account; and

ARTICLE IX

If a person is entitled to the payment of an Old Age Security pension or a spouse's allowance solely through the application of the totalizing provisions of Article VIII, the agency of Canada shall calculate the amount of the pension or spouse's allowance payable to that person in conformity with the provisions of the Old Age Security Act governing the payment of a partial pension or a spouse's allowance, exclusively on the basis of the periods of residence in Canada on or after January 1, 1952 which may be considered under that Act or are deemed as such under Article VI of this Agreement.

an Old Age Security pension shall be paid to a person who is outside Canada only if that person's periods of residence, totalized as provided in Article VIII, are at least equal to the minimum period of residence in Canada required by the Old Age Security Act for entitlement to the payment of a pension outside Canada; and

ARTICLE X

If a person is entitled to the payment of a benefit under the Canada Pension Plan solely through the application of the totalizing provisions of Article VIII, the agency of Canada shall calculate the amount of benefit payable to that person in the following manner:

the earnings-related portion of the benefit shall be determined in conformity with the provisions of the Canada Pension Plan, exclusively on the basis of the pensionable earnings under that Plan; and

the amount of the flat-rate portion of the benefit determined in conformity with the provisions of the Canada Pension Plan by

ARTICLE XI

[Deleted effective October 1, 1997]

PART IV

MISCELLANEOUS PROVISIONS

ARTICLE XII

The Competent Authorities of the two Contracting States shall:

Conclude an Administrative Arrangement and make such other arrangements as may be necessary for the application of this Agreement;

ARTICLE XIII

The Competent Authorities and agencies of the Contracting States, within the scope of their respective authorities, shall assist each other in implementing this Agreement. In accordance with arrangements to be agreed upon pursuant to Article XII(a), the Competent Authorities and agencies may also assist each other in administering the laws to which this Agreement applies.

ARTICLE XIV

Where the laws of a Contracting State provide that any document which is submitted to the Competent Authority or an agency of that Contracting State shall be exempted, wholly or partly, from fees or charges, including consular and administrative fees, the exemption shall also apply to documents which are submitted to the Competent Authority or an agency of the other Contracting State in accordance with its laws.

ARTICLE XV

The Competent Authorities and agencies of the Contracting States may correspond directly with each other and with any person wherever the person may reside whenever it is necessary for the administration of this Agreement. The correspondence may be in the official language of either Contracting State.

ARTICLE XVI

A written application for benefits filed with an agency of one Contracting State shall protect the rights of the claimants under the laws of the other Contracting State if the applicant:

requests that it be considered an application under the laws of the other Contracting State; or

ARTICLE XVII

A written appeal of a determination made by the agency of one Contracting State may be validly filed with an agency of either Contracting State. The appeal shall be dealt with according to the appeal procedure of the laws of the Contracting State whose decision is being appealed.

ARTICLE XVIII

Unless disclosure is required under the national statutes of a Contracting State, information about an individual which is transmitted in accordance with the Agreement to that Contracting State by the other Contracting State is confidential and shall be used exclusively for the purposes of implementing this Agreement. Such information received by a Contracting State shall be governed by the national statutes of that Contracting State for the protection of privacy and confidentiality of personal data.

PART V

TRANSITIONAL AND FINAL PROVISIONS

ARTICLE XIX

No provision of this Agreement shall confer any right

to receive a pension, allowance or benefit for a period before the date of the entry into force of the Agreement, or

ARTICLE XX

The Competent Authority of the United States and the authorities of the provinces of Canada may conclude understandings concerning any social security legislation within the provincial jurisdiction insofar as those understandings are not inconsistent with the provisions of this Agreement.

ARTICLE XXI

This Agreement shall remain in force and effect until the expiration of one calendar year following the year in which written notice of its denunciation is given by one of the Contracting States to the other Contracting State.

ARTICLE XXII

This Agreement shall enter into force on the first day of the second month following the month in which each Government shall have received from the other Government written notification that it has complied with all statutory and constitutional requirements for the entry into force of this Agreement.

IN WITNESS WHEREOF, the undersigned, duly authorized thereto by their respective Governments, have signed this Agreement.

DONE in duplicate at Ottawa this 11th day of March 1981, in the English and French languages, each version being equally authentic.

Alexander M. Haig, Jr.
For the Government of the
United States of America

Mark MacGuigan
Monique Begin
For the Government of Canada

ADMINISTRATIVE ARRANGEMENT
FOR THE IMPLEMENTATION OF THE AGREEMENT ON SOCIAL SECURITY
BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND THE GOVERNMENT OF CANADA,
CONCLUDED ON MARCH 11, 1981

In conformity with Article XII(a) of the Agreement on Social Security between the Government of the United States of America and the Government of Canada, entered into on March 11, 1981, and hereinafter referred to as "the Agreement",

The competent authorities:

-for the United States of America:

Richard A. SCHWEIKER
Secretary of Health and Human Services

Madame Monique BEGIN
Minister of National Health and Welfare

Have agreed on the following provisions:

Chapter 1

General Provisions

Paragraph 1

The following are designated as liaison agencies for the purposes of administering the Agreement and this Administrative Arrangement:

For the United States, the Social Security Administration, and

For Canada, Income Security Programs, Department of National Health and Welfare.

Paragraph 2

Terms used in this Administrative Arrangement have the same meaning as in the Agreement.

Paragraph 3

The agencies of the Contracting States will agree upon joint procedures and forms necessary for the implementation of the Agreement and this Administrative Arrangement.

Chapter 2

Provisions on Coverage

Paragraph 4

Where the laws of a Contracting State are applicable in accordance with Article V of the Agreement, the agency of that Contracting State will issue, in accordance with rules and procedures to be agreed upon by the agencies of the two Contracting States and at the request of an employer, employee or self-employed person, a certificate stating that the concerned employee or group of employees or self-employed person is covered by those laws. The certificate will be evidence that the employee, group of employees or self-employed person is exempt from the laws on compulsory coverage of the other Contracting State.

By the Social Security Administration; and

By the Accounting and Collections Division, Department of National Revenue-Taxation.

Chapter 3

Provisions on Benefits

Paragraph 5

The liaison agency of the Contracting State with which an application for benefits is first filed in accordance with Article XVI of the Agreement will inform the liaison agency of the other Contracting State of this fact without delay, using forms established for this purpose. It will also transmit documents and such other available information as may be necessary for the liaison agency of the other Contracting State to establish the right of the applicant to benefits according to the provisions of Part III of the Agreement. In the case of an application for disability benefits, it will, in particular, transmit relevant medical evidence in its possession concerning the disability of the applicant.

Paragraph 6

In the application of Article VII of the Agreement, the Canadian liaison agency will notify the United States liaison agency of the years in which a person is credited with coverage under the Canada Pension Plan along with such other information as may be necessary to determine the amount of the person's benefit.

[Deleted effective August 1, 1984.]

Paragraph 7

In the application of Chapter 2 of Part III of the Agreement, the United States liaison agency will notify the Canadian liaison agency of the periods of coverage which a person has completed under United States laws, along with such other information as may be necessary to determine the amount of the person's benefits.

Chapter 4

Miscellaneous Provisions

Paragraph 8

In accordance with measures to be agreed upon pursuant to Paragraph 3 of this Administrative Arrangement, the liaison agency of one Contracting State will, upon request of the liaison agency of the other Contracting State, furnish available information relating to the claim of any specified individual for the purpose of administering the Agreement.

Paragraph 9

The liaison agencies of the two Contracting States will exchange statistics on the payments made to beneficiaries under the Agreement for each calendar year in a form to be agreed upon. The data will include the number of beneficiaries and the total amount of benefits, by type of benefit.

Paragraph 10

This Administrative Arrangement will take effect on the date of entry into force of the Agreement and will have the same period of duration.

DONE in duplicate at Washington, this 22nd day of May, 1981, in English and French, both texts being equally authentic.

FOR THE GOVERNMENT OF THE UNITED STATES OF AMERICA:

Richard S. Schweiker

FOR THE GOVERNMENT OF CANADA: