International Programs
U.S.-Iceland Social Security Agreement
Agreement and Administrative Arrangement both signed on September 27, 2016 .
Entered into force March 1, 2019.?
AGREEMENT ON SOCIAL SECURITY
BETWEEN
THE UNITED STATES OF AMERICA
AND
ICELAND
The United States of America and
Iceland (hereinafter referred to as the “Contracting States”),
Being desirous of regulating the relationship between their two countries in the field of Social Security, have agreed as follows:
PART I
GENERAL PROVISIONS
Article 1
Definitions
- For the purposes of this Agreement:
-
“national” means,
as regards the United States, a national of the United States as defined in Section 101, Immigration and Nationality Act, as amended, and
as regards Iceland, a national of Iceland as defined in the Icelandic Nationality Act No 100/1952; - “laws” means the laws and regulations specified in Article 2 of this Agreement;
-
“Competent Authority” means,
as regards the United States, the Commissioner of Social Security, and
as regards Iceland, velferdarráduneytid (Ministry of Welfare); -
“agency” means,
as regards the United States, the Social Security Administration, and
as regards Iceland,
for the Mandatory Pension Insurance Scheme, the relevant Pension Fund;
for the national pension, Tryggingastofnun ríkisins (Social Insurance Administration), and “period of coverage” means,
as regards the United States, 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
as regards Iceland, residence as defined in section II of the Icelandic Social Security Act, which coincides with
(i) periods of work or self-employment for which social security or Pension Fund contributions were paid in respect of the laws specified in Article 2(1)(b) of this Agreement,
(ii) periods before the entry into force of the Act mentioned in subparagraph (e)(i) of this Article for which a person establishes that he or she worked under Icelandic laws, and
(iii) periods for which a person establishes that he or she was self–employed under Icelandic laws;
- “benefit” means any benefit provided for in the laws specified in Article 2 of this Agreement; and
- “personal data” means any information relating to a specific (identified or identifiable) person, as well as any information which can be used to distinguish or trace an individual’s identity. This includes, but is not limited to, the following: any individual identifier; citizenship, nationality, statelessness or refugee status; benefits, eligibility, or other claims information; contact information; medical information or lay information used in a medical determination; information about marital, familial or personal relationships; and information pertaining to work, financial or economic status.
- Any term not defined in this Article shall have the meaning assigned to it in the applicable laws.
Article 2
Material Scope
For the purposes of this Agreement, the applicable laws are:
-
as regards the United States, the laws governing the Federal old-age, survivors, and disability insurance program:
(i) Title II of the U.S. Social Security Act and regulations pertaining thereto, except sections 226, 226A, and 228 of that title, and regulations pertaining to those sections, and
(ii) Chapters 2 and 21 of the U.S. Internal Revenue Code of 1986 and regulations pertaining to those chapters;
-
as regards Iceland, the laws governing the national old-age and invalidity pension scheme and the Mandatory Pension Insurance Scheme (Pension Funds):
(i) Section II and Section III of the Icelandic Social Security Act and regulations pertaining thereto, except Article 19; Article 20, paragraphs 3 and 4; and Article 18 paragraph 4, second sentence,
(ii) The Act on Mandatory Pension Insurance and on the Activities of Pension Funds and regulations pertaining thereto, except Article 15, paragraphs 2 and 3, and
(iii) The Icelandic Social Security Contribution Act.
-
- 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 concluded between one Contracting State and a third State, or laws or regulations promulgated for their specific implementation.
- Except as provided in the following sentence, this Agreement shall also apply to legislation which amends or supplements the laws specified in paragraph 1 of this Article. 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 (3) months of the date of the official publication of the new legislation that no such extension of this Agreement is intended.
Article 3
Persons Covered
This Agreement shall apply to:
- persons who are or have been subject to the Laws of one or both Contracting States; and
- other persons with respect to the rights they derive from the persons described in sub-paragraph (a) of this Article.
Article 4
Equality of Treatment
Unless otherwise provided in this Agreement, a person designated in Article 3 of this Agreement who resides in the territory of a Contracting State shall receive equal treatment with nationals of the other Contracting State in the application of the laws of the other Contracting State regarding entitlement to or payment of benefits.
Article 5
Portability of Benefits
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 a person resides outside or is absent from the territory of that Contracting State shall not be applicable to a person who resides in the territory of the other Contracting State.
PART II
Provisions Concerning Applicable Laws
Article 6
Specific Rules
- Except as otherwise provided in this Article, a person employed within the territory of one of the Contracting States shall, with respect to that employment, be subject to the laws of only that Contracting State.
Where a person who is normally employed in the territory of the United States by an employer in that territory is sent by that employer to the territory of Iceland for a temporary period, the person shall be subject to the laws of only the United States as if the person were employed in the territory of the United States, provided that the period of employment in the territory of Iceland is not expected to exceed five (5) years. For purposes of applying this paragraph in the case of an employee who is sent from the territory of the United States by an employer in that territory to the territory of Iceland, that employer and an affiliated company of the employer (as defined under the laws of the United States) shall be considered one and the same, provided that the employment would have been covered under United States laws absent this Agreement.
Where a person who is resident in the territory of Iceland and employed by an employer whose registered office or place of business is situated in that territory is sent by that employer from that territory to the territory of the United States for a temporary period, the person shall be subject to the laws of only Iceland as if the person were employed and resident in the territory of Iceland, provided that the period of employment in the territory of the United States is not expected to exceed five (5) years.
If, under subparagraph (a) or (b) of this paragraph, a person continues to be subject to the laws of a Contracting State while in the territory of the other Contracting State, that subparagraph shall also apply to the person’s family members who accompany the person, unless they are themselves employed or self-employed in the territory of the latter Contracting State.
- Paragraph 2 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.
- A self-employed person who resides within the territory of a Contracting State shall be subject to the laws of only that Contracting State.
- Where the same activity is considered to be self-employment under the laws of one Contracting State and employment under the laws of the other Contracting State, that activity shall be subject to the laws of only the first Contracting State if the person is a resident of that Contracting State, and to the laws of only the other Contracting State in any other case.
-
- A person who is employed as an officer or member of a crew on a vessel which flies the flag of one Contracting State and who would be covered under the laws of both Contracting States shall be subject to the laws of only the Contracting State whose flag the vessel flies. For purposes of the preceding sentence, a vessel which flies the flag of the United States is one defined as an American vessel under the laws of the United States.
- Traveling employees of air transportation companies who perform work in the territories of both Contracting States and 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 Contracting State.
-
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.
- Nationals of one of the Contracting States who are employed by the Government of that Contracting State in the territory of the other Contracting State but who are not exempt from the laws of the other Contracting State by virtue of the Conventions mentioned in subparagraph (a) of this paragraph shall be subject to the laws of only the first Contracting State. For the purpose of this paragraph, employment by the United States Government includes employment by an instrumentality thereof, and employment by the Icelandic Government includes employment by Icelandic public employers.
- Except as otherwise provided in this Part, a person who does not reside in the territory of Iceland shall not be subject to Icelandic laws.
- When a person is subject to the laws of the United States pursuant to this Article, the person and his or her employer are exempt from paying Icelandic social security contributions and contributions to a Pension Fund under the Act on Mandatory Pension Insurance and on the Activities of Pension Funds.
- The Competent Authorities of the two Contracting States may agree to grant an exception to the provisions of this Article with respect to particular persons or categories of persons, provided that any affected person shall be subject to the laws of one of the Contracting States.
PART III
Provisions on Benefits
Article 7
Benefits under United States Laws
The following provisions shall apply to the United States:
- Where a person has completed at least six (6) 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 Icelandic laws and which do not coincide with periods of coverage already credited under United States laws.
- In determining eligibility for benefits under paragraph 1 of this Article, the agency of the United States shall credit one (1) quarter of coverage for every three (3) months of coverage certified by the agency of Iceland; 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 (4). 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, nor will the agency of the United States take into account any periods of coverage which are not based on wages or self-employment income.
- 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.
- 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 8
Benefits under Icelandic Laws
The following provisions shall apply to Iceland:
As regards the national old-age and invalidity pension scheme:
- Where a person covered by this Agreement who is or has been subject to the laws of the United States has had a total period of work under Icelandic laws of at least twelve (12) months but does not have sufficient periods of coverage to satisfy the requirements for entitlement to benefits under the Icelandic Social Security Act, the agency of Iceland shall take into account for the purpose of establishing entitlement to benefits under this Article, periods of coverage which are credited under United States laws and which do not coincide with periods of coverage already credited under Icelandic law.
- Where the condition of paragraph 1 of this Article is fulfilled, a person covered by this Agreement shall be entitled to an Icelandic national pension subject to the other conditions set forth in the Icelandic Social Security Act.
- Where the condition on work under paragraph 1 of this Article has not been met, a person covered by this Agreement shall be entitled to an Icelandic national pension if the person has been resident in Iceland for a period of not less than three (3) years in the qualifying period laid down in the Icelandic Social Security Act.
- National old age pension and the invalidity pension shall be payable to persons covered by this Agreement residing in the territory of the United States if the person concerned fulfills the condition in paragraph 1 of this Article.
For purposes of meeting the twelve (12)-month work requirement of paragraph 1 of this Article, the periods of coverage defined in Article 1.1(e)(i-iii) shall be accepted.
Periods described in Article 1.1(e)(i-iii) may be combined for purposes of meeting the twelve (12)-month work requirement in paragraph 1 of this Article.
As regards the Mandatory Pension Insurance Scheme (Pension Funds):
- Article 19, paragraph 4 of the Act on Mandatory Pension Insurance and on the Activities of Pension Funds shall not apply to contributions paid by a person covered by this Agreement into a Pension Fund operating under such Act on the return of or transfer of residence of that person to the United States.
- A person covered by this Agreement shall be entitled to a pension in pursuance of the Act on Mandatory Pension Insurance and on the Activities of Pension Funds and the Articles of Association of the relevant Pension Fund, on the basis of contributions paid into a Pension Fund operating under said Act.
PART IV
Miscellaneous Provisions
Article 9
Administrative Measures
The Competent Authorities of the two Contracting States shall:
make all necessary administrative arrangements for the implementation of this Agreement and designate liaison agencies;
communicate to each other information concerning the measures taken for the application of this Agreement; and
communicate to each other, as soon as possible, information concerning all changes in their respective laws which may affect the application of this Agreement.
Article 10
Mutual Assistance
The Competent Authorities and the agencies of the Contracting States, within the scope of their respective authorities, shall assist each other in implementing this Agreement. This assistance shall be free of charge, subject to exceptions to be agreed upon in an administrative arrangement.
Article 11
Confidentiality of Exchanged Personal Data
- Unless otherwise required by the national statutes of a Contracting State, personal data transmitted in accordance with this Agreement to one Contracting State by the other Contracting State shall be used solely for purposes of administering this Agreement and the laws in Article 2 of this Agreement. The receiving Contracting State’s national statutes for the protection of privacy and confidentiality of personal data and the provisions of this Agreement shall govern such use.
- The Competent Authorities of the Contracting States shall inform each other about all amendments to their national statutes regarding the protection of privacy and confidentiality of personal data that affect the transmission of personal data.
- A person may request, and the Competent Authority or agency requesting or transmitting personal data pursuant to this Agreement must disclose to that person upon such request, the content, receiving agency, and duration of use of his or her personal data, and the purpose and legal grounds for which such personal data were used or requested.
- The agencies shall take all reasonable steps to ensure that transmitted personal data are accurate and limited to data required to fulfill the receiving agency’s request. In accordance with their respective national statutes, the agencies shall correct or delete any inaccurate transmitted personal data and any data not required to fulfill the receiving agency’s request, and immediately notify the other Contracting State’s agency of such correction. This shall not limit a person’s right to request such correction of his or her personal data directly from the agencies.
Both the transmitting and the receiving agencies shall effectively protect personal data against unauthorized or illegal access, alteration, or disclosure.
Article 12
Confidentiality of Exchanged Employers’ Information
Unless otherwise required by the national statutes of a Contracting State, employers’ information transmitted between Contracting States in accordance with this Agreement shall be used solely for purposes of administering this Agreement and the laws in Article 2 of this Agreement. The receiving Contracting State’s national statutes for the protection and confidentiality of employers’ information and the provisions of this Agreement shall govern such use.
Article 13
Documents
- 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.
- Copies of documents 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 14
Correspondence and Languages
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.
- 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 15
Claims
- 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.
- If an applicant has filed a written application for benefits with an agency of one Contracting State and has not explicitly requested that the application be restricted to benefits under the laws of that Contracting State, the application shall also protect the rights of the claimants under the laws of the other Contracting State if the applicant provides information at the time of filing indicating that the person on whose record benefits are claimed has completed periods of coverage under the laws of the other Contracting State.
- The provisions of Part III of this Agreement shall apply only to benefits for which an application is filed on or after the date on which this Agreement enters into force.
Article 16
Appeals and Time Limits
- A written appeal of a determination made by an agency of one Contracting State may be validly filed with an agency of either Contracting State. The appeal shall be decided according to the procedure and laws of the Contracting State whose decision is being appealed.
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 17
Transmittal of Claims, Notices, and Appeals
In any case to which the provisions of Article 15 or 16, or both, 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 liaison agency of the other Contracting State.
Article 18
Currency
- Payments under this Agreement may be made in the currency of the Contracting State making the payments.
- In case provisions designed to restrict the exchange or export 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 owed by either Contracting State under this Agreement.
Article 19
Resolution of Disagreements
Any disagreement regarding the interpretation or application of this Agreement shall be resolved by consultation between the Competent Authorities.
Article 20
Supplementary Agreements
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. Such agreements may be given retroactive effect if they so specify.
Article 21
Transitional Provisions
- 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.
- In determining the right to benefits under this Agreement, consideration shall be given to periods of coverage under the laws of both Contracting States and other events that occurred before the entry into force of this Agreement.
- In applying paragraph 2 or 3, or both, of Article 6 of this Agreement in the case of persons who were sent to work in the territory of a Contracting State prior to the date of entry into force of this Agreement, the period of employment referred to in those paragraphs shall be considered to begin on the date of the entry into force of this Agreement.
- Determinations concerning entitlement to benefits made before the entry into force of this Agreement shall not affect rights arising under it.
- The application of this Agreement shall not result in any reduction in the amount of a benefit to which entitlement was established prior to the entry into force of this Agreement.
- Nothing in this Agreement shall affect the notes concerning the reciprocity of payment of social security benefits exchanged between the United States and Icelandic Governments on December 1, 1980, and April 16, 1981.
Article 22
Duration and Termination
- This Agreement shall remain in force until the expiration of one calendar year following the year in which written notice of its termination is given by one of the Contracting States to the other Contracting State.
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 23
Entry into Force
This Agreement shall enter into force on the first day of the third 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, being duly authorized thereto, have signed the present Agreement.
DONE at Reykjavik this 27th day of September, 2016, in duplicate in the English and Icelandic languages, both texts being equally authentic.
FOR THE UNITED STATES OF AMERICA:
Robert Cushman Barber
FOR ICELAND:
Eygló Harðardóttir
ADMINISTRATIVE ARRANGEMENT BETWEEN THE
COMPETENT AUTHORITIES OF
THE UNITED STATES OF
AMERICA AND ICELAND
FOR THE IMPLEMENTATION OF THE AGREEMENT
ON SOCIAL SECURITY BETWEEN THE UNITED STATES OF
AMERICA AND ICELAND
The Competent Authority of the United States of America and
the Competent Authority of Iceland
In conformity with Article 9(a) of the Agreement on Social Security between the United States of America and Iceland of this date, hereinafter referred to as the “Agreement,” have agreed as follows:
CHAPTER I
General Provisions
Article 1
Where terms that appear in the Agreement are used in this Administrative Arrangement, they shall have the same meaning as they have in the Agreement.
Administrative Article 1 annotation
Article 2
- The liaison agencies referred to in Article 9(a) of the Agreement shall be:
-
for the United States, the Social Security Administration; and
-
for Iceland, Tryggingastofnun rkisins (Social Insurance Administration).
-
The liaison agencies designated in paragraph 1 of this Article shall decide upon the joint procedures and methods necessary for the implementation of the Agreement andthis Administrative Arrangement.
Administrative Article 2.1 annotation
Administrative Article 2.2 annotation
Chapter II
Provisions on Coverage
Article 3
- Where the laws of one Contracting State are applicable in accordance with any of the provisions of Article 6 of the Agreement, the agency of that Contracting State, upon request of the employer or self-employed person, shall issue a certificate stating that the employee or self-employed person is subject to those laws and indicating the duration for which the certificate shall be valid. This certificate shall be evidence that the employee or self-employed person is exempt from the laws on compulsory coverage of the other Contracting State.
The certificate referred to in paragraph 1 of this Article shall be issued:
-
in theUnited States, bythe SocialSecurity Administration; and
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in Iceland, by Tryggingastofnun rkisins (Social Insurance Administration).
The agency of a Contracting State that issues a certificate referred to in paragraph 1 of this Article shall furnish a copy of the certificate or agreed upon information from the certificate to the liaison agency of the other Contracting State as needed by the agency of the other Contracting State.
Administrative Article 3.1 annotation
Administrative Article 3.2 annotation
Administrative Article 3.3 annotation
Chapter III
Provisions on Benefits
Article 4
- Applications for benefits under the Agreement shall be submitted on forms to be developed by the liaison agencies of the two Contracting States.
- The agency of the Contracting State, with which an application for benefits is first filed in accordance with Article 15 of the Agreement, shall provide the liaison agency of the other Contracting State with such evidence and other information in its possession as may be required to complete action on the claim.
The agency of a Contracting State, which receives an application that was first filed with an agency of the other Contracting State, shall without delay provide the liaison agency of the other Contracting State with such evidence and other available information in its possession as may be required for it to complete action on the claim.
- 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 liaison agencies of both Contracting States shall decide upon the types of information to be verified.
Administrative Article 4.1 annotation
CHAPTER IV
Miscellaneous Provisions
Article 5
- In accordance with measures to be decided upon pursuant to paragraph 2 of Article 2 of this Administrative Arrangement, the agency of one Contracting State shall, upon request by the agency of the other Contracting State, furnish available information relating to the claim of any specified individual for the purpose of administering the Agreement.
- For the purpose of facilitation of the implementation of the Agreement and this Administrative Arrangement, the liaison agencies may agree on measures for the provision and transmission of the electronic exchange of data.
Administrative Article 5.1 annotation
Administrative Article 5.2 annotation
Article 6
The liaison agencies of the two Contracting States shall exchange statistics on the number of certificates issued under Article 3 of this Administrative Arrangement and on the payments made to beneficiaries under the Agreement. These statistics shall be furnished annually in a manner to be decided upon.
Article 7
- Where administrative assistance is requested and provided under Article 10 of the Agreement, expenses other than regular personnel and operating costs of the agency providing the assistance shall be reimbursed, except as may be decided by the Competent Authorities or liaison agencies of the Contracting States.
- Upon request, the liaison agency of either Contracting State shall furnish without cost to the liaison agency of the other Contracting State any medical information and documentation in its possession relevant to the disability of the claimant or beneficiary.
- Upon request, the liaison agency of either Contracting State shall furnish without cost to the liaison agency of the other Contracting State any medical information and documentation in its possession relevant to the disability of the claimant or beneficiary.
- The liaison 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 liaison agency of the other Contracting State.
Administrative Article 7.1 annotation
Administrative Article 7.2 annotation
Administrative Article 7.3 annotation
Article 8
- This Administrative Arrangement shall enter into force on the date of entry into force of the Agreement and shall remain in force so long as the Agreement is in force.
- The Competent Authorities may notify each other, in writing, of changes in the names of the agencies without the need to amend the Agreement or this Administrative Arrangement.
Administrative Article 8.1 annotation
DONE at Reykjavik this 27th day of September, 2016, in duplicate in the English and Icelandic languages, both texts being equally authentic.
FOR THE FOR THE COMPETENT AUTHORITY COMPETENT AUTHORITY OF THE OF UNITED STATES OF AMERICA:
Robert Cushman Barber
FOR THE FOR THE COMPETENT AUTHORITY COMPETENT AUTHORITY OF THE OF ICELAND:
Eygló Harðardóttir