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Agreement and administrative arrangement, both
signed at Luxembourg February 12, 1992; entered into force November 1,
1993.
Version française
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Contents |
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AGREEMENT
BETWEEN THE UNITED STATES OF AMERICA
AND THE GRAND DUCHY OF LUXEMBOURG
ON SOCIAL SECURITY
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The United States of America and
the Grand Duchy of Luxembourg
BEING DESIROUS of regulating the relationship between their two countries
in the field of Social Security, have agreed to conclude an Agreement
for that purpose, as follows:
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GENERAL PROVISIONS
Article 1
- 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 Luxembourg, a person of Luxembourg nationality;
- "Laws" means the laws and regulations specified in Article
2;
- "Competent Authority" means,
as regards the United States, the Secretary of Health and Human Services,
and
as regards Luxembourg, the Minister for Social Security;
- "Agency" means,
as regards the United States, the Social Security Administration,
and
as regards Luxembourg, any institution or authority responsible
for applying all or part of the laws designated in Article 2, paragraph
(1)(b);
- "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 was completed or any similar period insofar as it is recognized
by such laws as equivalent to a period of coverage; and
- "Benefit" means any cash benefit, pension or allowance
provided for in the laws specified in Article 2, including any increases,
readjustment allowances or supplementary allowances, unless otherwise
provided in this Agreement.
- Any term not defined in this Article shall have the meaning assigned
to it in the applicable laws.
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Article 2
- 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:
-- 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,
--Chapters 2 and 21 of the Internal Revenue Code of 1986 and regulations
pertaining to those chapters;
- as regards Luxembourg,
--the laws governing old-age, invalidity and survivors pensions
insurance, and,
--with regard to Part II only, the laws governing sickness insurance,
accident and occupational disease insurance, unemployment insurance
and family allowances.
- As regards Luxembourg, this Agreement shall not apply to
legislation concerning social assistance, victims of war, or special
schemes for civil servants.
- This Agreement shall also apply to future legislation amending or
supplementing the laws specified in paragraph (1) of this Article.
- This Agreement shall also apply to any future legislation of a Contracting
State which creates new categories of beneficiaries under the laws specified
in paragraph (1) of this Article unless the Competent Authority of that
Contracting State notifies the Competent Authority of the other Contracting
State in writing within three months of the official publication of
such legislation that no such extension of the Agreement is intended.
- Unless otherwise provided in this Agreement, the laws referred to
in paragraph 1 shall not include Regulations on Social Security of the
European Communities or any convention or other international agreement
on Social Security which either Contracting State has concluded with
a third State or any laws or regulations promulgated for their specific
implementation; however, the Agreement shall not prevent either State
from taking into account under its laws the provisions of any other
convention or agreement which that State has concluded with a third
State.
Article 3
Unless otherwise provided in this Agreement, it shall apply to all persons
who are or who have been subject to the laws of one or both Contracting
States and to persons deriving rights from any such persons.
Article 4
Unless otherwise provided in this Agreement, persons mentioned in Article
3 who reside in the territory of a Contracting State shall receive equal
treatment with nationals of that Contracting State in the application
of its laws regarding eligibility for and the payment of benefits.
Article 5
Unless otherwise provided in this Agreement, any provision of the laws
of a Contracting State which restricts entitlement to or payment of cash
benefits solely because the person resides outside or is absent from the
territory of that Contracting State shall not be applicable to the persons
who reside in the territory of the other Contracting State.
Article 6
Prorated benefits paid under the laws of a Contracting State in accordance
with Articles 13 (3) or 16 (2) shall not be reduced, suspended or terminated
to take account of benefits paid under the laws of the other Contracting
State based on periods of coverage of the same person on whose record
the prorated benefits are paid.
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Provisions on Coverage
Article 7
Unless otherwise provided in Articles 8 through 10, the laws to be applied
to a person shall be determined in accordance with the following provisions:
- As regards employment, 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.
- As regards self-employment, a person who would otherwise be compulsorily
covered under the laws of both Contracting States shall, with respect
to that self-employment, be subject only to the laws of the Contracting
State of which he is a resident.
- A person who would otherwise be compulsorily covered under the laws
of both Contracting States with respect to employment as an officer
or member of a crew on a ship or aircraft shall be subject only to the
laws of the Contracting State in whose territory the employer is headquartered.
Article 8
- A person who is normally employed in the territory of a Contracting
State by his employer in that territory and who is sent by that employer
to work for that employer in the territory of the other Contracting
State shall remain subject to the laws of only the first Contracting
State as if he were employed in its territory, provided that the employment
in the territory of the other Contracting State is not expected to last
for more than five years. For purposes of applying the preceding sentence,
an employer and an affiliated company of the employer, as defined under
the laws of the Contracting State from whose territory the person was
sent, shall be considered one and the same, provided that the employment
would have been covered under the laws of that Contracting State absent
this Agreement.
- Paragraph 1 shall apply where a person who has been sent by his employer
from the territory of a Contracting State to the territory of a third
State is subsequently sent by that employer from the territory of the
third State to the territory of the other Contracting State.
Article 9
- 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.
- Notwithstanding Article 7, 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 paragraph (1) shall be subject to the laws of only the
first Contracting State. For purposes of this paragraph, employment
by the Government of a Contracting State includes employment by an instrumentality
thereof.
Article 10
The Competent Authorities of the two Contracting States may agree to
grant exceptions to the provisions of Articles 7 through 9, with
respect to any person or category of persons, provided that the affected
person or persons shall be subject to the laws of one of the Contracting
States.
Article 11
A person receiving a benefit under United States laws who transfers his
residence to Luxembourg shall be entitled to optional continued sickness
insurance under the provisions of Luxembourg laws.
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PROVISIONS ON BENEFITS
Chapter 1
General Provisions
Article 12
Unless otherwise provided in this Agreement, where a person has completed
periods of coverage under the laws of both Contracting States, the agency
of a Contracting State which determines entitlement to benefits under
its laws shall take account of periods of coverage which are creditable
under the laws of the other Contracting State and which do not coincide
with periods of coverage credited under its own laws.
Chapter 2
Special Provisions Applicable to the United States
Article 13
- The agency of the United States shall not apply the provisions of
Article 12 if the person on whose account benefits are based has sufficient
quarters of coverage to satisfy the requirements for entitlement to
benefits under United States laws or has fewer than 6 quarters of coverage
under United States laws.
- In determining eligibility for benefits under Article 12, the agency
of the United States shall credit one quarter of coverage for every
three months of coverage certified as creditable by the agency of Luxembourg;
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.
- Where entitlement to a benefit under United States laws is established
according to the provisions of Article 12, 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
Article 12 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 provisions of
Article 12.
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Chapter
3
Special Provisions Applicable to Luxembourg
Article 14
Periods which have the effect under Luxembourg laws of prolonging
the reference period during which a certain duration of coverage must
have been completed in order to establish entitlement to invalidity or
survivors pensions shall also be taken into account if these periods have
been completed in the territory of the United States.
Article 15
The provisions of Article 12 shall apply by analogy for
the purpose of crediting in accordance with Luxembourg laws a period of
coverage after the birth of a child for the parent who is responsible
for raising the child. Application of this provision shall be subject
to the condition that the person concerned last completed periods of coverage
under Luxembourg laws.
Article 16
- Where a person is entitled to a pension under Luxembourg laws without
application of the provisions of Articles 12 and 14, the Luxembourg
agency shall, in accordance with the provisions of the laws which it
administers, determine the amount of the pension corresponding to the
total length of the periods of coverage to be taken into account pursuant
to those laws.
This agency shall also calculate the amount of the pension which would
be obtained by applying the rules laid down in paragraph (2).
Only the higher of these amounts shall be paid.
- Where a person is entitled to a pension under Luxembourg laws and
the conditions for entitlement are not satisfied unless account is taken
of the provisions of Articles 12 and 14, the following rules shall apply:
- the Luxembourg agency shall calculate the theoretical amount of
the pension that the person concerned could claim if all the periods
of coverage completed under the laws of the two Contracting States
had been completed under its own laws;
- the Luxembourg agency shall then establish the actual amount of
the pension by multiplying the theoretical amount referred to above
by the ratio that the length of the periods of coverage completed
under the laws which it administers bears to the total length of the
periods of coverage completed under the laws of the two Contracting
States;
- for the calculation of the theoretical amount referred to in subparagraph
a), the Luxembourg agency shall credit for the periods of coverage
completed under United States laws:
- as far as the calculation of proportional and special proportional
increases is concerned, the average earnings recorded for periods
of coverage completed under Luxembourg laws;
- as far as the calculation of fixed increases and special fixed
increases is concerned, a fixed amount equal to the fixed amount
which would have been used if the periods of coverage had been completed
under Luxembourg laws.
Article 17
If the total length of the periods of coverage completed
by a person under Luxembourg laws does not amount to one year and if under
those laws no right to pension is acquired by virtue only of those periods,
the Luxembourg agency shall not be required to award a pension with respect
to such periods. If a right to pension is not acquired, the contributions
paid on account of the person shall be reimbursed to him pursuant to Luxembourg
laws upon attainment of age sixty-five.
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MISCELLANEOUS PROVISIONS
Article 18
The Competent Authorities of the two Contracting States
shall:
- Make all necessary administrative arrangements for the application
of this Agreement;
- Communicate to each other information concerning the measures taken
for the application of this Agreement;
- Communicate to each other information concerning all changes in
their respective laws which may affect the application of this Agreement;
and
- Designate liaison agencies to facilitate the application of this
Agreement.
Article 19
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. The administrative assistance
furnished by the Competent Authorities and agencies shall, as a rule,
be free of charge. However, the Competent Authorities of the Contracting
States may agree that certain expenses be reimbursed.
Article 20
- Any exemption from or reduction of taxes, stamp duty, notarial or
registration fees provided for in the laws of one Contracting State
with respect to certificates or documents required to be produced for
the purposes of the laws of that Contracting State shall be extended
to similar documents produced for the purposes of the laws of the other
Contracting State or of this Agreement.
- All declarations, documents and certificates required to be produced
for the purposes of this Agreement shall be exempt from authentication
by diplomatic or consular authorities.
Article 21
- 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 an official language of
either Contracting State.
- An application or document may not be rejected because it is in an
official language of the other Contracting State.
Article 22
- A written application for benefits filed with the 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
the 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 this Agreement shall apply only to an application
for benefits which is filed on or after the date this Agreement enters
into force.
Article 23
Any claim, declaration or appeal which must be submitted within a specified
period to the Competent Authority or an agency of one Contracting State
in order to comply with the laws of that Contracting State shall be considered
to have been submitted on time if it is submitted within the same period
to the Competent Authority or an agency of the other Contracting State.
Article 24
- Payments under this Agreement may be made in the currency of the Contracting
State making the payment.
- 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 decide on the measures
necessary to ensure the transfer of sums owed by either Contracting
State under this Agreement.
Article 25
Disagreements between the two Contracting States regarding the interpretation
or implementation of this Agreement shall be the subject of negotiations
between the Competent Authorities of the Contracting States.
Article 26
Unless otherwise required by 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 shall be used exclusively for purposes of implementing the 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.
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TRANSITIONAL AND FINAL PROVISIONS
Article 27
- This Agreement shall not establish any claim to payment of a benefit
for any period before its entry into force, or to a lump-sum death benefit
if the person died before the entry into force of the Agreement.
- All periods of coverage completed under the laws of a Contracting
State before the entry into force of this Agreement shall be taken into
consideration for the determination of rights acquired under the provisions
of this Agreement, except that the United States shall not take into
account periods of coverage which occurred prior to 1937.
- Subject to the provisions of paragraph (1), a right may be acquired
under this Agreement even though it relates to a contingency which arose
before its entry into force.
- Any benefit which was denied or suspended in accordance with the domestic
laws of a Contracting State on account of the nationality of the person
concerned or of his residence in the territory of the other Contracting
State but which is payable by virtue of this Agreement shall, at the
request of the person concerned, be awarded or resumed effective with
the date on which this Agreement enters into force, unless the right
to such benefit was previously settled by payment of a lump sum.
- Benefit rights which persons may have acquired before the entry into
force of this Agreement shall be reviewed at their request, taking into
account the provisions of this Agreement. These rights may also be revised
ex officio. In no circumstances shall this Agreement result in a reduction
of any cash benefit to which entitlement existed prior to its entry
into force.
- In applying Article 8(1) in the case of persons who were sent to the
territory of a Contracting State prior to the date of entry into force
of this Agreement, the period of employment referred to in that paragraph
shall be considered to begin on that date.
Article 28
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 29
Both Contracting States shall notify each other in writing of the completion
of their respective constitutional and statutory procedures required for
the entry into force of this Agreement. This Agreement shall enter into
force on the first day of the third month following the date of the last
notification.
Article 30
This Agreement shall remain in force and effect 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
Article 31
In the event this Agreement is terminated, all rights regarding entitlement
to or payment of benefits acquired under its provisions shall be retained;
the Contracting States shall make arrangements dealing with rights in
the process of being acquired.
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IN WITNESS WHEREOF, the undersigned, being duly
authorized thereto, have signed the present Agreement.
Done at Luxembourg on February 12, 1992 in duplicate, in the English
and French languages, the two texts being equally authentic.
FOR THE UNITED STATES OF AMERICA:
Edward M. Rowell
FOR THE GRAND DUCHY OF LUXEMBOURG:
Jacques F. Poos
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ADMINISTRATIVE ARRANGEMENT
FOR THE IMPLEMENTATION OF THE AGREEMENT
BETWEEN THE UNITED STATES OF AMERICA
AND THE GRAND DUCHY OF LUXEMBOURG
ON SOCIAL SECURITY
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In conformity with Article 18, paragraph (a), of the Agreement between
the United States of America and the Grand Duchy of Luxembourg on Social
Security of this date, hereinafter referred to as the "Agreement", the
Competent Authorities have agreed as follows:
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Chapter I
General Provisions
Article 1
The terms used in this Administrative Arrangement shall have the same
meaning as in the Agreement.
Article 2
- The liaison agencies referred to in Article 18, paragraph (d),
of the Agreement shall be:
- for the United States, the Social Security Administration;
- for Luxembourg, the General Inspectorate for Social Security (l'Inspection
générale de la sécurité sociale).
- The liaison agencies designated in paragraph 1 shall agree upon the
joint procedures and forms necessary for the implementation of the Agreement
and this Administrative Arrangement.
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Chapter II
Provisions on Coverage
Article 3
- Where the laws of a Contracting State are applicable in accordance
with any of the provisions of Part II of the Agreement, the liaison
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. This certificate shall be proof that
the named worker is exempt from the laws on compulsory coverage of the
other Contracting State.
- The liaison agency of a Contracting State which issues a certificate
referred to in paragraph 1 shall furnish a copy of the certificate to
the liaison agency of the other Contracting State as needed by the latter
agency.
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Chapter III
Provisions on Benefits
Article 4
- The agency of the Contracting State with which an application for
benefits is first filed in accordance with Article 22 of the Agreement
shall inform the liaison agency of the other Contracting State of this
fact without delay and provide such evidence and other information 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 that Contracting State with
such evidence and other available information 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 his family members. The types of information to be verified
shall be agreed upon by the liaison agencies.
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Chapter IV
Miscellaneous Provisions
Article 5
In accordance with measures to be agreed upon pursuant to Article 2 of
this Administrative Arrangement, the agency of one Contracting State shall,
upon request of an agency of the other Contracting State, furnish available
information relating to the claim of any specified individual for the
purpose of administering the Agreement.
Article 6
The agency of a Contracting State which receives a claim, declaration
or appeal referred to in Article 23 of the Agreement shall indicate the
date of receipt on the document and forward the document without delay
to the liaison agency of the other Contracting State.
Article 7
The liaison agencies of the two Contracting States shall exchange statistics
on the payments made to beneficiaries under the Agreement. These statistics
shall be furnished annually in a form to be agreed upon.
Article 8
- Where administrative assistance is requested under Article 19 of the
Agreement, expenses other than regular personnel and operating costs
of the agencies providing the assistance shall be reimbursed.
- Upon request, an agency of either Contracting State shall furnish
without cost to an agency of the other Contracting State any medical
information and documentation in its possession relevant to the disability
of the claimant or beneficiary.
- The agency of one Contracting State shall reimburse amounts owed under
paragraph 1 of this Article upon presentation of a detailed statement
of expenses by the agency of the other Contracting State.
This Administrative Arrangement shall enter into force on the date of
entry into force of the Agreement and shall have the same period of validity.
DONE at Luxembourg on February 12, 1992 in duplicate, in the English
and French languages, the two texts being equally authentic.
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FOR THE COMPETENT AUTHORITY OF THE UNITED STATES
OF AMERICA:
Edward M. Rowell
FOR THE COMPETENT AUTHORITY OF THE GRAND DUCHY OF LUXEMBOURG:
Mady Delvaux-Stehres
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