Protocol to the 1985 Agreement

Protocol (2004) amending Social Security Agreement (1985)

Supplementary Agreement on Social Security between the Kingdom of Sweden and the United States of America

The Government of the Kingdom of Sweden and the Government of the United States of America,

having considered the Agreement on Social Security which was signed on their behalf at Stockholm on May 27, 1985hereinafter referred to as the “Agreement”as well as the Administrative Arrangement for the Implementation of the Agreement, also signed on May 27, 1985 hereinafter referred to as the “Administrative Arrangement”;

being desirous of continuing their cooperation in the field of social security, taking into account changes to their respective social security laws since the Agreement and Administrative Arrangement were signed;

have decided to conclude a Supplementary Agreement and, to this end, have agreed as follows:

Article I

Article 1 of the Agreement shall be amended as follows:

(a) In paragraph 1, the word “and” between the words “Guam” and “American Samoa” shall be replaced by a comma (“,”), and the words “and the Northern Mariana Islands” shall be added immediately after “American Samoa”.

(b) In paragraph 4, the words “Secretary of Health and Human Services” shall be replaced with “Commissioner of Social Security”.

(c) In paragraph 6, the words “a period of residence,” shall be inserted immediately after “self- employment,”.

Article II

Article 2 of the Agreement shall be amended as follows:

(a) In paragraph 1.a (ii), “1954” shall be replaced with “1986”.

(b) Paragraph 1.b shall be revised to read as follows:

“b. As regards Sweden, the laws governing

(i) sickness compensation and activity compensation;

(ii) guaranteed pensions and income-based old-age pensions; and

(iii) survivors pensions and surviving children’s allowance; provided, however, that this Agreement shall not affect coverage or the liability to pay contributions under branches of social security other than those referred to in this subparagraph.”

(c) The existing paragraph 2 shall be redesignated as paragraph 3 and the following new paragraph 2 shall be inserted immediately after paragraph 1:

“2. This Agreement shall also apply to future laws and regulations which extend the laws of a Contracting State specified in paragraph 1 to new categories of beneficiaries or to new benefits unless an objection on the part of that State has been communicated to the other State not later than three months following the entry into force of such future laws and regulations.”

Article III

(a) Article 7, paragraph 2, shall be amended to read as follows:

“2.

(a) If a person normally in the service of an employer having a place of business in the territory of one Contracting State is sent by that employer to the territory of the other Contracting State for a period not expected to exceed 60 months, he shall be subject to the laws of only the first Contracting State as if he were still employed in the territory of the first Contracting State.

(b) For purposes of applying the preceding subparagraph, 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 in the absence of this Agreement.

(c) A person who is sent by an employer located in the territory of one Contracting State to the territory of the other Contracting State, and who is subject to the laws of the first State according to the provisions of subparagraph (a), shall be considered resident in only the first State for purposes of Swedish laws designated in Article 2.1.b. as shall be the spouse and children under the age of 18 who accompany that person for any period in which they are not engaged in employment subject to the laws of the other State.”

(b) Article 7 is further amended by adding the following paragraph 3 at the end thereof:

“3. Paragraph 2 of this Article shall apply where a person who has been sent by his employer from the territory of one Contracting State to the territory of a third State, and who is insured 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 IV

Article 12 shall be amended as follows:

(a) In paragraph 1, the words “supplementary pension insurance” shall be replaced with “income-based old-age pension”.

(b) In paragraph 2, the words “pension point year” shall be replaced with “creditable year of coverage”.

Article V

Article 13 shall be revised to read as follows:

“1. Unless otherwise provided in this agreement, if a person is not eligible for a benefit because he has not accumulated sufficient periods of coverage under the laws of Sweden, the eligibility of that person for the benefit shall be determined by totalizing the periods of coverage accumulated in both Contracting States.

When applying the provisions in this paragraph, four quarters of coverage under United States laws shall be considered as a year creditable under the Swedish laws.

2. The totalizing provisions of paragraph 1 of this Article shall not apply to the basic requirement of three years of residence in Sweden for entitlement to a guaranteed pension or to sickness or activity compensation in the form of guaranteed compensation.

3. When determining the right to sickness or activity compensation, coverage under United States laws shall be considered the same as coverage under Swedish laws. For purposes of the preceding sentence, a person shall be considered to be covered under United States laws if the person is eligible for a benefit under such laws or has credit for at least 4 quarters of coverage under such laws during a period of 8 calendar quarters ending with the calendar quarter in which the person became disabled according to Swedish laws.

When computing the amount of income-related sickness or activity compensation, only income earned during periods when Swedish laws were applicable shall be taken into account. Benefits under the laws of the United States shall not affect the amount of such compensation.

4. The provisions of Articles 5 and 6 shall not apply to surviving children’s allowance. Neither shall they apply to guaranteed pensions, nor to sickness or activity compensation in the form of guaranteed compensation.”

Article VI

Article 5 of the Administrative Arrangement shall be amended by replacing the words “is credited with pension points” with “has creditable periods of coverage”.

Article VII

(a) This Supplementary 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 Supplementary Agreement.

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

(c) The Agreement as in force prior to the entry into force of this Supplementary Agreement shall continue to apply in regards to rights to benefits which can be established through the application of the Agreement as in force prior to the entry into force of this Supplementary Agreement.

(d) 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 Stockholm, this 22 day of June, 2004, in the English and Swedish languages, both texts being equally authentic.

For the Government of the Kingdom of Sweden
Staffan Bengtsson

For the Government of the United States
Teel Bivins