This document is described as an “Agreement,” with the understanding that it will enter into force for Austria a formal treaty subject to parliamentary ratification and for the United States as an executive agreement under authority of section 233 of the Social Security Act (Act).  Upon entry into force, the Agreement had the effect of law in both countries and is binding on both countries. 

A Supplementary Agreement signed in Vienna on October 5, 1995 and effective January 1, 1997 amended the U.S.-Austrian social security Agreement that was signed on July 13, 1990, and that entered into force on November 1, 1991.

The original Agreement, like other U.S. agreements concluded pursuant to section 233 of the Act, has two main purposes.  First, it eliminates dual social security coverage, the situation that occurs when a person from one country works in the other country and is required to pay social security taxes to both the United States and Austria on the same earnings.  The Agreement includes rules that assign a worker’s coverage to only one country.

Second, the Agreement helps prevent gaps in benefit protection for workers who have divided their careers between the United States and Austria.  Such workers may fail to qualify for social security benefits from one or both countries because they have not worked long enough to meet minimum eligibility requirements.  Under the Agreement, these workers may qualify for partial U.S. or Austrian benefits based on “totalized” (i.e., combined) credits from both countries.

The primary purpose of the Supplementary Agreement was to authorize Austria to use a different method of computing benefit amounts for people who have earned periods of coverage under both the U.S. and Austrian social security systems.  Under the Supplementary Agreement, Austria pays benefits that are computed in accordance with Austrian domestic law rather than the pro rata computation method provided under the original Agreement.  In addition, the Supplementary Agreement made revisions in the original Agreement that were necessary to take account of several later changes in U.S. and Austrian law.