Protocol

Protocol and Supplementary Notes (1995) amending Social Security Agreement and Supplementary Notes (1976)

This Treaty was signed on March 6, 1995 and entered into force on May 1, 1996.

Second Supplementary Agreement Amending the Agreement between the Federal Republic of Germany and the United States of America on Social Security of January 7, 1976

The Federal Republic of Germany

and

the United States of America,

intending to revise and supplement the Agreement on Social Security between the Federal Republic of Germany and the United States of America concluded on January 7, 1976, as amended by the Supplementary Agreement of October 2, 1986, hereinafter referred to as “the Agreement”,

have agreed as follows:

Article 1

1. Article 1 of the Agreement shall be revised to read as follows:

a) Paragraph 1 shall be revised to read as follows:

“1. Territory

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

as regards the Federal Republic of Germany, the area in which the Basic Law (Grundgesetz) of the Federal Republic of Germany is in force;”.

b) Paragraph 3 shall be revised to read as follows:

“3. Competent Authority
means, as regards the United States of America, the Social Security Administration, and

as regards the Federal Republic of Germany, the Federal Ministry of Labor and Social Affairs,”.

2. In Article 2, paragraph 1(a), of the Agreement, the words “Farmer’s Old Age Benefits” shall be replaced with the words “Farmer’s Old-Age Security”.

3. Article 6, paragraph 2, of the Agreement shall be revised to read as follows:

“2. The employment of a person in the territory of one Contracting State to which he was sent from the territory of the other Contracting State by his employer in that territory shall continue to be subject to the laws on compulsory coverage of only the other Contracting State, as if he were still employed in the territory of the other Contracting State, even when the employer also has a place of business (Zweigniederlassung) in the territory of the Contracting State of employment, provided that the employment in the territory of the first Contracting State is not expected to exceed 5 years.”

4. In Article 8 of the Agreement, the following paragraph 8 shall be added after paragraph 7:

“8. In the application of Article 7, paragraph 1, of the Agreement, a period of coverage under United States laws shall also Include a period during which a person employed at an establishment of the United States Government in the Federal Republic of Germany was covered under the provisions of the United States civil service retirement system.”

5. Paragraph 2(b) of the Final Protocol to the Agreement shall be revised to read as follows:

“(b) Part II of the Agreement shall not apply to the Steelworkers’ Supplementary Pension Insurance system or to the Farmers’ Old-Age Security system of the Federal Republic of Germany.”

6. Paragraph 5 of the Final Protocol to the Agreement shall be revised by adding the following subparagraph (e):

“(e) If, according to Article 6, paragraphs 2 to 5, of the Agreement, a person

employed in the territory of the Federal Republic of Germany is not subject to German laws, the German laws on compulsory coverage for sickness insurance and contributions and benefits according to the Act on Social Security for the Risk of Long-Term Care shall also not apply to the person and the person’s employer;

employed in the territory of the United States of America is not subject to United States laws, the United States laws on Federal hospital insurance for the Aged and Disabled (Medicare, Part A) shall also not apply to the person and the person’s employer.”

7. The following paragraph 8 shall be added after paragraph 7 of the Final Protocol to the Agreement:

“8.

(a) Persons described in Article 3(a) – (c) of the Agreement who, prior to the date on which the National Socialist sphere of influence extended to what was then their homeland,

belonged to the German language and cultural group,

had already attained age 16, and

had not acknowledged themselves to be ethnically German because they were Jewish,

and who left the areas of expulsion within the meaning of Article 1, paragraph 2, number 3, of the German Federal Law on Displaced Persons, may, upon application, pay retroactive voluntary contributions to the German pensions insurance system, provided that periods of contributions or periods of employment under the Foreign Pensions Law first become creditable for these persons as a result of § 17a of the Foreign Pensions Law. The retroactive voluntary contributions may only be paid for periods after attainment of age 16 and before attainment of age 65 and starting with the time the National Socialist sphere of influence was extended to what was then their homeland. Contributions shall only be permitted for periods that have not already been credited as periods of contributions according to German laws. An event that gives rise to eligibility for benefits shall not preclude the payment of these retroactive voluntary contributions, provided the event occurs prior to the expiration of the time limit for payment of the contributions.

(b) Retroactive voluntary contributions according to subparagraph (a) may not exceed the amount necessary to permit payment of benefits based on periods creditable under § 17a of the Foreign Pensions Law in accordance with the statutory pension provisions on payment of benefits to eligible persons abroad that were applicable in the territory of the Federal Republic of Germany without the Acceding Territory (Beitrittsgebiet) on July 1, 1990.

(c) Notwithstanding the second sentence of subparagraph (a), persons who attained age 65 on or before October 31, 1991, and who, on July 1, 1990, do not meet the requirements for payment of benefits abroad through retroactive voluntary contributions pursuant to this Agreement, may pay voluntary contributions for the period from July 1, 1990, to November 30, 1991, but in an amount no greater than that which is necessary for the payment of the benefit abroad; for this purpose, the date of eligibility may be deferred to a point in time after attainment of age 65.

(d) Contributions shall be paid in an amount of 84.48 Deutsche Mark for each calendar month; for this purpose, the amount of retroactive voluntary contributions to be paid may be reduced by the amount of any resulting benefits that are payable retroactively. For the computation of the insured person’s relevant German Benefit Computation Base, the values for the year 1994 shall be applied to the retroactively paid contributions.

(e) For purposes of computing the benefit amount, the statutory pension provisions applicable within the territory of the Federal Republic of Germany without the Acceding Territory on July 1, 1990, including the provisions on benefit payments to eligible persons abroad, shall be applied, together with this Agreement. The provisions on revaluation of pensions based on Personal Remuneration Points (§ 307 of Volume VI of the Social Law Code) shall be applied as appropriate. The monthly amount of the benefit that is to be paid abroad shall be derived from the Pension Category Factor, as well as

(aa) the Personal Remuneration Points for contribution periods under § 17a of the Foreign Pensions Law that are to be considered in accordance with the first sentence of this subparagraph (e); provided, however, that these shall be multiplied by the Present Pension Value (East) but not more than 0.7 times the Present Pension Value and a Pension Value of 15.96 Deutsche Mark shall apply for the period from July 1, 1990, to December 31, 1990, a Pension Value of 18.36 Deutsche Mark shall apply for the period from January 1, 1991, to June 30, 1991, and a Pension Value of 21.11 Deutsche Mark shall apply for the period from July 1, 1991, to December 31, 1991;

(bb) the Personal Remuneration Points for contribution periods to be considered according to subparagraphs (b) and (c) multiplied by the Present Pension Value that is applicable for the year in which the pension is to be paid, with the amount of 46.00 Deutsche Mark being used for periods prior to July 1, 1995; and

(cc) the remaining Personal Remuneration Points multiplied by the Present Pension Value that is applicable for the year for which the pension is to be paid, with the amount of 39.58 Deutsche Mark being used for periods prior to July 1, 1991.

(f) Subparagraphs (a) through (e) shall only apply with respect to eligible persons who established ordinary residence in the United States of America before July 1, 1990.

(g) For purposes of payment of survivors benefits, subparagraphs (a) through (f) shall apply as appropriate to survivors of persons described in subparagraph (a), even if the insured person dies prior to the expiration of the time limit for retroactive voluntary contributions. This shall also apply in the case of benefits for former spouses with pension rights and in the case of reinstated survivors pensions.

(h) An application to pay retroactive voluntary contributions according to this paragraph must be filed within 24 calendar months following the entry into force of this paragraph. The application must be filed with the social insurance agency to which the last German contribution was paid or deemed to have been paid, and which is competent for adjudicating the benefit claim. If the last contribution was paid to an agency of the miners pensions insurance system, retroactive voluntary contributions may only be paid to the wage earners or salaried employees insurance system. The contributions shall be paid to the social insurance agency that is competent to accept and process the application.

(i) Applications under subparagraph (h) shall be considered timely filed applications for benefits. Benefits resulting from this paragraph shall be paid beginning July 1, 1990, if the event giving rise to eligibility occurs prior to this date and the benefit eligibility requirements applicable on July 1, 1990, are met. If the event giving rise to eligibility occurs after June 30, 1990, benefits resulting from this paragraph shall be paid beginning with the calendar month following the month in which the event giving rise to eligibility occurs and the benefit eligibility requirements applicable on July 1, 1990, are met; a survivors benefit shall be paid from the date of death if a benefit was not payable to the insured person for the month of death.

(j) Subparagraphs (h) and (i) shall also apply with respect to persons whose pensions were awarded prior to the entry into force of this paragraph. In this case, the amount of Personal Remuneration Points shall at least equal the amount previously considered.”

8. Paragraph 8 of the Final Protocol to the Agreement shall be redesignated as paragraph 9.

Article 2

1. This Supplementary Agreement shall enter into force on the first day of the month following the month in which the Governments of the Contracting States will have notified each other that the internal national requirements necessary to enable the Supplementary Agreement to take effect have been met. Article 1, paragraph 7, shall be applied retroactively from July 1, 1990. Article 1, paragraph 3, shall apply only with respect to persons who are transferred from one Contracting State to the other Contracting State as of the entry into force of this Supplementary Agreement.

2. This Supplementary Agreement shall remain in force for the same period as the Agreement. In witness whereof, the undersigned have signed this Supplementary Agreement.

Done at Bonn on March 6, 1995 in duplicate in the German and English languages, both texts being equally authentic.

For the Federal Republic of Germany
Kastrup

For the United States of America
Charles E. Redman

SECOND SUPPLEMENTARY ADMINISTRATIVE AGREEMENT AMENDING THE ADMINISTRATIVE AGREEMENT OF JUNE 21, 1978, FOR THE IMPLEMENTATION OF THE AGREEMENT BETWEEN THE FEDERAL REPUBLIC OF GERMANY AND THE UNITED STATES OF AMERICA ON SOCIAL SECURITY OF JANUARY 7, 1976

The Government of the Federal Republic of Germany

and

the Government of the United States of America,

in application of Article 16, paragraph 1, of the Agreement between the Federal Republic of Germany and the United States of America on Social Security of January 7, 1976, as amended by the Second Supplementary Agreement of this date, hereinafter referred to as “the Agreement”,

for the purpose of amending the Administrative Agreement for the Implementation of the Agreement, signed on June 21, 1978, as amended by the Supplementary Administrative Agreement of October 2, 1986, hereinafter referred to as “the Administrative Agreement”,

have agreed as follows:

Article 1

1. Article 4 of the Administrative Agreement shall be revised as follows:

a) Paragraph 3 shall be revised to read as follows:

“3. Article 6, paragraph 2, of the Agreement shall apply to a person if he is transferred from the territory of one Contracting State to the territory of the other Contracting State within the context of a preexisting employment relationship.”

b) The following paragraph 3a shall be added after paragraph 3:

“3a. If a person has been sent from the territory of a Contracting State to the territory of the other Contracting State for a specified period of work in accordance with Article 6, paragraph 2, of the Agreement, and the person subsequently begins a new period of work in the territory of the other Contracting State, Article 6, paragraph 2, of the Agreement shall not apply to the new period unless

(a) the new period of work begins at least 12 months after the end of the initial period of work or

(b) the new period of work is not expected to last beyond 5 years from the date on which the initial period of work began.”

2. Article 13 of the Administrative Agreement shall be deleted.

Article 2

This Supplementary Administrative Agreement shall enter into force on the date of entry into force of the Second Supplementary Agreement of this date amending the Agreement. Article 1, paragraph 1, shall apply only with respect to persons who are transferred from one Contracting State to the other Contracting State as of the entry into force of this Supplementary Administrative Agreement.

Done at Bonn on March 6, 1995 in duplicate in the German and English languages, both texts being equally authentic.

For the Government of the Federal Republic of Germany
Kastrup
For the Government of the United States of America
Charles E. Redman