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

Article 1.1.a annotation

as regards the Czech Republic, a national of the Czech Republic;

Article 1.1.a.1 annotation

"laws" means the laws and regulations specified in Article 2 of this Agreement;

Article 1.1.b annotation

as regards the Czech Republic, the Ministry of Labour and Social Affairs;

Article 1.1.c annotation

the body responsible for implementation of the laws specified in Article 2;

Article 1.1.d annotation

"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; and

Article 1.1.e annotation

"benefit" means any benefit provided for in the laws specified in Article 2 of this Agreement.

Article 1.1.f annotation

Any term not defined in this Article shall have the meaning assigned to it in the applicable laws.

Article 1.2 annotation

This Agreement shall apply:

Article 2.1 annotation

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

Chapters 2 and 21 of the Internal Revenue Code of 1986 and regulations pertaining to those chapters;

Article 2.1.a annotation

as regards the Czech Republic, to

Article 2.1.b annotation

as regards Part II of the Agreement, the Act on Public Health Insurance.

Article 2.1.b.a annotation

Unless otherwise provided in this Agreement, the laws referred to in paragraph 1 of this Article shall not include treaties or other international agreements or supranational legislation on Social Security in force between one Contracting State and a third State, or laws or regulations promulgated for their specific implementation, except insofar as they contain provisions relating to the apportionment of insurance burdens.

Article 2.2 annotation

Except as provided in the following sentence, this Agreement shall also apply to legislation which amends, supplements or replaces the laws specified in paragraph 1. This agreement shall apply to future legislation of a Contracting State which creates new categories of beneficiaries or new benefits under the laws of that Contracting State unless the Competent Authority of that Contracting State notifies the Competent Authority of the other Contracting State in writing within three months of the date of the official publication of the new legislation that no such extension of the Agreement is intended.

Article 2.3 annotation

This Agreement shall apply to:

1.

Unless otherwise provided in this Agreement, any provision of the laws of a Contracting State which restricts entitlement to or payment of benefits solely because the person resides outside or is absent from the territory of that Contracting State shall not be applicable to persons who reside in the territory of the other Contracting State.

Article 5.1 annotation

2.

Where the laws of a Contracting State provide or allow that a benefit be payable in a third country, then the same applies for a benefit payable pursuant to Part III of this Agreement.

Article 5.2 annotation

A person normally employed in the territory of one Contracting State by an employer having a place of business in that territory who is sent by that employer to perform work for that employer in the territory of the other Contracting State for a temporary period shall be subject to the laws of only the first Contracting State as if the person were employed in its territory, provided that the period for which the person is sent is not expected to exceed five years. For purposes of applying this paragraph, an employer and an affiliated or subsidiary company of the employer, as defined under the laws of the Contracting State from which the person was sent, shall be considered one and the same, provided that the employment in the territory of the other Contracting State would have been covered under the laws of the Contracting State from which the person was sent absent this Agreement.

Article 8.1 annotation

Paragraph 1 of this Article shall apply where a person who has been sent by his or her employer from the territory of a Contracting State to the territory of a third State, and who is compulsorily covered under the laws of that Contracting State while employed in the territory of the third State, is subsequently sent by that employer from the territory of the third State to the territory of the other Contracting State.

Article 8.2 annotation

Traveling employees of air transportation companies who perform work in the territories of both Contracting States who would otherwise be covered under the laws of both Contracting States shall, with respect to that work, be subject to the laws of only the Contracting State in the territory of which the company has its headquarters. However, if such employees reside in the territory of the other Contracting State, they shall be subject to the laws of only that State

Article 8.4 annotation

This Agreement shall not affect the provisions of the Vienna Convention on Diplomatic Relations of April 18, 1961, or of the Vienna Convention on Consular Relations of April 24, 1963.

Article 9.1 annotation

Nationals of one of the Contracting States who are employed by the Government of that State in the territory of the other Contracting State but to whom the Conventions mentioned in paragraph 1 of this Article do not apply shall be subject to the laws of only the first Contracting State. For the purpose of this paragraph, employment by the Government of a Contracting State includes employment by an instrumentality thereof.

Article 9.2 annotation

Where a person has completed at least six quarters of coverage under United States laws, but does not have sufficient periods of coverage to satisfy the requirements for entitlement to benefits under United States laws, the agency of the United States shall take into account, for the purpose of establishing entitlement to benefits under this Article, periods of coverage which are credited under Czech laws and which do not coincide with periods of coverage already credited under United States laws.

Article 11.1 annotation

In determining eligibility for benefits under paragraph 1 of this Article, the agency of the United States shall credit one quarter of coverage for every 90 days of coverage or fraction thereof certified by the agency of the Czech Republic; however, no quarter of coverage shall be credited for any calendar quarter already credited as a quarter of coverage under United States laws. The total number of quarters of coverage to be credited for a year shall not exceed four. However, the agency of the United States shall not take into account periods of coverage which occurred prior to the earliest date for which periods of coverage may be credited under its laws.

Article 11.2 annotation

Where entitlement to a benefit under United States laws is established according to the provisions of paragraph 1 of this Article, the agency of the United States shall compute a pro rata Primary Insurance Amount in accordance with United States laws based on (a) the person's average earnings credited exclusively under United States laws and (b) the ratio of the duration of the person's periods of coverage completed under United States laws to the duration of a coverage lifetime as determined in accordance with United States laws. Benefits payable under United States laws shall be based on the pro rata Primary Insurance Amount.

Article 11.3 annotation

Entitlement to a benefit from the United States which results from paragraph 1 of this Article shall terminate with the acquisition of sufficient periods of coverage under United States laws to establish entitlement to an equal or higher benefit without the need to invoke the provision of paragraph 1 of this Article.

Article 11.4 annotation

according to the rules provided by paragraph (2), with the exception when the result of this calculation is equal to or lower than the result of the calculation under subparagraph (a).

Article 12.1 annotation

If, under the laws of the Czech Republic, the right to benefits can be acquired only with regard to periods of coverage completed under the laws of the United States, then the agency of the Czech Republic shall take into account periods of coverage completed according to the laws of the United States in so far as they do not overlap periods of coverage completed under the laws of the Czech Republic and:

Article 12.2 annotation

calculate the theoretical amount of the benefit which could have been claimed provided that all periods of coverage had been completed under the laws of the Czech Republic and

Article 12.2.a annotation

then on the basis of the theoretical amount calculated in accordance with subparagraph (a) shall determine the amount of the benefit payable by applying the ratio of the duration of the periods of coverage completed under the laws of the Czech Republic to the total periods of coverage.

Article 12.2.b annotation

In order to determine the basis for calculation of the benefit, the agency of the Czech Republic shall in applying the provision of subparagraph (a) of this paragraph take into account only income gained during the periods of coverage completed under the laws which it applies. This income indexed according to Czech laws will be considered as gained during the periods of coverage completed under the laws of the United States that are taken into account for the calculation of the theoretical amount of the benefit.

Article 12.2.b annotation

The person concerned shall be entitled to the highest amount calculated in accordance with paragraphs 1 and 2 from the agency of the Czech Republic.

Article 12.3 annotation

For the application of paragraph 2 of this Article the agency of the Czech Republic shall credit 90 days of coverage for every quarter of coverage certified by the agency of the United States. In case that in one calendar year four quarters of coverage are certified, the Czech agency credits the full number of days in the calendar year concerned.

Article 12.4 annotation

If the period of coverage completed under the laws of the Czech Republic is less than twelve months and does not result in any right to benefits, then the agency of the Czech Republic will not award the benefit.

Article 12.5 annotation

The Czech competent authority may, in the interest of categories of beneficiaries, limit the application of the provision of Article 6.

Article 12.6 annotation

A person whose disability began before reaching the age of 18 and who has not participated in the insurance scheme for the necessary period shall acquire the right to a full disability benefit provided this person is a resident of the Czech Republic.

Article 12.7 annotation

communicate to each other information concerning all changes in their respective laws which may affect the application of this Agreement.

Article 13 annotation

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 corresponding documents which are submitted to the Competent Authority or an agency of the other Contracting State in the application of this Agreement.

Article 16.1 annotation

Documents and certificates which are presented for purposes of this Agreement shall be exempted from requirements for authentication by diplomatic or consular authorities.

Article 16.2 annotation

Copies of documents which are certified as true and exact copies by an agency of one Contracting State shall be accepted as true and exact copies by an agency of the other Contracting State, without further certification. The agency of each Contracting State shall be the final judge of the probative value of the evidence submitted to it from whatever source.

Article 16.3 annotation

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.

Article 17.1 annotation

An application or document may not be rejected by a Competent Authority or agency of a Contracting State solely because it is in the language of the other Contracting State.

Article 17.2 annotation

provides information indicating that periods of coverage have been completed under the laws of the other Contracting State.

Article 18.1 annotation 

An applicant may request that an application filed with an agency of one Contracting State not be considered an application for benefits under the laws of the other Contracting State or that it be effective on a different date in the other Contracting State within the limitations of and in conformity with the laws of the other Contracting State.

Article 18.2 annotation 

The provisions of Part III of this Agreement shall apply only to an application for benefits which is filed on or after the date this Agreement enters into force.

Article 18.3 annotation 

In any case to which the provisions of Articles 18 and 19 of this Agreement apply, the agency to which the claim, notice, or written appeal has been submitted shall indicate the date of receipt on the document and transmit it without delay to the agency of the other Contracting State.

Article 20.1 annotation 

Any claim, notice, or written appeal which, under the laws of one Contracting State, must have been filed within a prescribed period with an agency of that Contracting State, but which is instead filed within the same period with an agency of the other Contracting State, shall be considered to have been filed on time.

Article 20.2 annotation 

Payments under this Agreement may be made in the currency of the Contracting State making the payments, or other freely convertible currency.

Article 21.1 annotation 

In case provisions designed to restrict the exchange or exportation of currencies are introduced by either Contracting State, the Governments of both Contracting States shall immediately take measures necessary to ensure the transfer of sums payable under this Agreement.

Article 21.2 annotation 

This Agreement shall not establish any claim to payment of a benefit for any period before the date of entry into force of this Agreement, or to a lump-sum death benefit if the person died before the entry into force of this Agreement.

Article 23.1 annotation 

In determining the right to benefits under this Agreement, consideration shall be given to periods of coverage under the laws of either Contracting State and other events which occurred before the entry into force of this Agreement.

Article 23.2 annotation 

In applying paragraphs 1 and 3 of Article 8 in the case of persons who were pursuing an activity as an employed or self-employed person in the territory of a Contracting State prior to the date of entry into force of this Agreement, that activity shall be considered to begin on the date of entry into force of this Agreement.

Article 23.3 annotation 

Determinations concerning entitlement to benefits which were made before the entry into force of this Agreement do not contradict the application of this Agreement.

Article 24.1 annotation 

The application of this Agreement shall not result in any reduction in the amount of a benefit to which entitlement was established prior to its entry into force.

Article 24.2 annotation 

This Agreement shall remain in force without any limitation on its duration.

Article 26.1 annotation 

This Agreement may be amended in the future by supplementary agreements which, from their entry into force, shall be considered an integral part of this Agreement.

Article 26.2 annotation 

This Agreement may be terminated by either Contracting State giving written notice of its termination to the other Contracting State. In the event that the Agreement is terminated, it shall remain in force until the expiration of one calendar year following the year in which written notice of its termination is delivered by one of the Contracting States to the other Contracting State.

Article 26.3 annotation 

If this Agreement is terminated, rights regarding entitlement to or payment of benefits acquired under it shall be retained. The Contracting States shall make arrangements dealing with rights in the process of being acquired.

Article 26.4 annotation 

ON BEHALF OF
THE UNITED STATES OF AMERICA:
 
Richard W. Graber

ON BEHALF OF
THE CZECH REPUBLIC:
 
Petr Nečas

for the Czech Republic, Česká správa sociálního zabezpečení (the Czech Social Security Administration).

Administrative Article 2.1 annotation 

The agencies referred to in paragraph 1 of this Article shall agree upon the joint procedures and forms necessary for the implementation of the Agreement and this Administrative Arrangement.

Administrative Article 2.2 annotation 

This certificate shall be evidence that the person concerned is exempt from the laws on compulsory coverage of the other Contracting State in respect of the designated employment or self-employment activity.

Administrative Article 3.1 annotation 

The certificate referred to in paragraph 1 of this Article shall be issued and exceptions under Article 10 of the Agreement shall be granted by the agencies referred to in Article 2 of this Administrative Arrangement.

Administrative Article 3.2 annotation 

The agency of a Contracting State which issues a certificate referred to in paragraph 1 of this Article shall furnish, as needed, a copy of the certificate or agreed upon information from the certificate to the agency of the other Contracting State.

Administrative Article 3.4 annotation 

Applications for benefits under the Agreement shall be submitted on forms to be agreed upon by the agencies of the two Contracting States.

Administrative Article 4.1 annotation 

The agency of the Contracting State with which an application for benefits is first filed in accordance with the Agreement shall transmit the application to the agency of the other Contracting State, indicating the date on which the application was received. The agency of the first Contracting State will also transmit, on forms to be agreed upon, a record of the periods of coverage completed under its laws and other information in its possession as may be required for the agency of the other Contracting State to complete action on the claim.

Administrative Article 4.2 annotation

The agency of the Contracting State with which an application for benefits has been filed shall verify the information pertaining to the applicant and the applicant's family members. The types of information to be verified shall be agreed upon by the agencies of both Contracting States.

Administrative Article 4.4 annotation 

Where administrative assistance is requested under Article 14 of the Agreement, it shall be free of charge. Expenses other than regular personnel and operating costs of the agency providing the assistance shall be reimbursed, except as may be agreed to by the Competent Authorities or agencies of the Contracting States.

Administrative Article 7.1 annotation 

Upon request, the agency of one Contracting State shall furnish without cost to the agency of the other Contracting State any medical information and documentation in its possession relevant to the disability of the claimant or beneficiary.

Administrative Article 7.2 annotation 

Where the agency of one Contracting State requires that a person in the territory of the other Contracting State who is receiving or applying for benefits under the Agreement submit to a medical examination, such examination, if requested by that agency, shall be arranged by the agency of the other Contracting State in accordance with the rules of the agency making the arrangements and at the expense of the agency which requests the examination.

Administrative Article 7.3 annotation 

The agency of one Contracting State shall reimburse amounts owed under paragraphs 1 or 3 of this Article upon presentation of a statement of expenses by the agency of the other Contracting State.

Administrative Article 7.4 annotation 

The agencies of the Contracting States shall pay benefits under the Agreement without any deduction for the agencies' administrative expenses.

Administrative Article 8 annotation 

FOR THE COMPETENT AUTHORITY
OF
THE UNITED STATES OF AMERICA:
 
Richard W. Graber

FOR THE COMPETENT AUTHORITY
OF
THE CZECH REPUBLIC:
 
Petr Nečas