International Programs
U.S.- Romania Social Security Agreement
Agreement signed on March 23, 2023 .
Entered into force September 1, 2026.
Contents |
|---|
| Part I - General Provisions |
| Part II - Provisions Concerning Applicable Laws |
| Part III - Provisions on Benefits |
| Part IV - Miscellaneous Provisions |
| Part V - Transitional and Final Provisions |
AGREEMENT ON SOCIAL SECURITY
BETWEEN
THE UNITED STATES OF AMERICA
AND
ROMANIA
Romania and the United States of America (“United States”), hereinafter individually referred to as “Contracting State” or collectively as “Contracting States,”
BEING DESIROUS of regulating the relations between the two States 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 Romania, a person possessing Romanian citizenship in accordance with the Law of Romanian Citizenship, and
as regards the United States, a national of the United States as defined in Section 101, Immigration and Nationality Act, as amended;
- “Laws” means the laws and regulations specified in Article 2 of this Agreement;
-
“Competent Authority” means,
as regards Romania, the ministry responsible for the Laws specified in Article 2 of this Agreement, which shall be notified through diplomatic channels, and
as regards the United States, the Commissioner of Social Security;
-
“Competent Institution” means,
as regards Romania, the institution at which the person has been insured at the time of submitting the claim for Benefits, the institution from which the person is entitled to Benefits or would be entitled to Benefits, or the institution designated by the Competent Authority, and
as regards the United States, the Social Security Administration;
“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 has been completed, or any similar period insofar as it is recognized by such Laws as equivalent to a period of coverage;
“Benefit” means any benefit, pension, or death grant, as appropriate, provided for in the Laws specified in Article 2 of this Agreement;
“Liaison Institution” means the institution responsible for ensuring the coordination and exchange of information between the Competent Institutions;
“Personal Information” means any data relating to a specific identified or identifiable person, as well as any information that can be used to distinguish or trace an individual’s identity; and
“Reside” means,
as regards Romania, to have a habitual residence, as opposed to a temporary residence or stay, and
as regards the United States, the meaning assigned to “residence” or “ordinarily resides” in the applicable Laws.
- 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 Romania:
- the laws governing the pensions and death grants from the public pensions system, and
- as regards Part II of this Agreement only, the laws referred to under paragraph 1(a)(i) of this Article and the laws governing health social insurance contributions.
-
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, and
- Chapters 2 and 21 of the Internal Revenue Code of 1986 and regulations pertaining to those chapters.
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- Unless otherwise provided in this Agreement, the Laws referred to in paragraph 1 of this Article shall not include treaties, other international agreements concluded between one Contracting State and a third State, supranational legislation on Social Security, or laws promulgated for the implementation of such treaties, other international agreements, or supranational legislation on Social Security.
- Except as provided in paragraph 4 of this Article, this Agreement shall also apply to laws which amend, supplement, or replace 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 months of the date of the official publication of the new legislation that no such extension of this Agreement is intended.
Article 3
Personal Scope
This Agreement shall apply to:
all persons who are or have been subject to the Laws of either or both Contracting States; and
- other persons whose rights derive, in accordance with the applicable Laws, from the persons specified under subparagraph (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
Export 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.
As regards Romania, the provisions of paragraph 1 of this Article shall not apply to special non-contributory cash benefits.
PART II
PROVISIONS CONCERNING APPLICABLE LAWS
Article 6
General Rule
Except as otherwise provided in this Part, an employed or self-employed person pursuing an activity within the territory of one of the Contracting States shall, with respect to that employment or self-employment, be subject to the Laws of only that Contracting State, regardless of where the person Resides or where the headquarters of the employer is located.
Article 7
Additional Rules
-
Where a person who is normally employed in the territory of one Contracting State by an employer that normally carries out substantial activity in that territory and who is sent by that employer to the territory of the other Contracting State for a period not to exceed five years, the person shall be subject to the Laws of only the first Contracting State as if the person were employed in the territory of the first Contracting State.
-
For purposes of applying paragraph 1 of this Article in the case of an employee who is sent from the territory of the United States by an employer in that territory to an affiliated company in the territory of Romania, the employer and the affiliated company of the employer shall be considered one and the same, provided that the employment would have been covered under the Laws of the United States absent this Agreement.
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Paragraphs 1 and 2 of this Article shall also 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 from the territory of the third State to the territory of the other Contracting State by that employer.
-
Where a person who is normally self-employed in the territory of one Contracting State temporarily relocates to the territory of the other Contracting State, he or she shall be subject to the Laws of only the first Contracting State, provided that the first Contracting State determines that he or she will pursue similar self-employment activity and that the period of self-employment activity in the territory of the other Contracting State is not to exceed five years.
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.
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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.
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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.
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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 Government of a Contracting State also includes employment by an instrumentality thereof.
The Competent Authorities of the two Contracting States or the institutions designated by them may agree to grant exceptions to the provisions of this Part with respect to a person or category of persons, provided that the person or persons are subject to the Laws of one of the Contracting States.
PART III
PROVISIONS ON BENEFITS
Article 8
Benefits under the Laws of the United States
- Where a person has completed at least six quarters of coverage under the Laws of the United States, but does not have sufficient Periods of Coverage to satisfy the requirements for entitlement to Benefits under the Laws of the United States, the Competent Institution 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 the Laws of Romania and which do not coincide with Periods of Coverage already credited under the Laws of the United States.
- In determining eligibility for Benefits under paragraph 1 of this Article, the Competent Institution of the United States shall credit one quarter of coverage for every three months of coverage certified by the Competent Institution of Romania; however, no quarter of coverage shall be credited for any calendar quarter already credited as a quarter of coverage under the Laws of the United States. The total number of quarters of coverage to be credited for a year shall not exceed four. The Competent Institution of the United States shall not take into account Periods of Coverage that occurred prior to the earliest date for which Periods of Coverage may be credited under its Laws, nor will the Competent Institution of the United States take into account any Periods of Coverage that are not based on wages or self-employment income.
- Where entitlement to a Benefit under the Laws of the United States is established according to the provisions of paragraph 1 of this Article, the Competent Institution of the United States shall compute a pro rata Primary Insurance Amount in accordance with the Laws of the United States based on:
the person's average earnings credited exclusively under the Laws of the United States; and
the ratio of the duration of the person's Periods of Coverage completed under the Laws of the United States to the duration of a coverage lifetime as determined in accordance with the Laws of the United States.
- Entitlement to a Benefit under the Laws of the United States that results from paragraph 1 of this Article shall terminate with the acquisition of sufficient Periods of Coverage under the Laws of the United States to establish entitlement to an equal or higher Benefit without the need to invoke paragraph 1 of this Article.
Benefits payable under the Laws of the United States shall be based on the pro rata Primary Insurance Amount.
Article 9
Determination of Benefits under the Laws of Romania
without the Aggregation of Periods of Coverage
If a person fulfills the conditions necessary for entitlement to a Benefit in accordance with the Laws of Romania without taking into account Periods of Coverage completed under the Laws of the United States, the Competent Institution of Romania shall calculate the Benefits only in accordance with Periods of Coverage completed under the Laws of Romania.
Article 10
Aggregation of the Periods of Coverage by the Competent Institution of Romania
-
If a person does not fulfill the conditions necessary for entitlement to a Benefit in accordance with the Laws of Romania without taking into account Periods of Coverage completed under the Laws of the United States, and entitlement to Benefits under the Laws of Romania is conditional upon the completion of a certain Period of Coverage, the Competent Institution of Romania shall take into account, to the extent necessary, Periods of Coverage completed under the Laws of the United States, insofar as such Periods of Coverage do not overlap with Periods of Coverage already credited under the Laws of Romania, as if they were periods completed under the Laws of Romania.
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In determining eligibility for Benefits under paragraph 1 of this Article, the Competent Institution of Romania shall take into consideration three months of coverage for every quarter of coverage certified by the Competent Institution of the United States. The total number of months of coverage to be taken into consideration for a year shall not exceed twelve.
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Where the Laws of Romania provide that the period in which a claimant receives a Benefit is reckonable in determining entitlement to a different Benefit, the Competent Institution of Romania shall take into account for this purpose any periods during which the person received a Benefit under the Laws of the United States.
Article 11
Award of Benefits under the Laws of Romania
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For purposes of applying paragraph 1 of this Article, the Competent Institution of Romania calculates Benefits as follows:
-
In determining eligibility for Benefits under paragraph 1 of this Article, the Competent Institution of Romania shall take into consideration three months of coverage for every quarter of coverage certified by the Competent Institution of the United States. The total number of months of coverage to be taken into consideration for a year shall not exceed twelve.
the theoretical amount of the Benefit shall be calculated as if all Periods of Coverage were completed under the Laws of Romania; and
the actual amount of the Benefit to be granted to the person shall be calculated based on the theoretical amount calculated according to the provisions of subparagraph (a) of this paragraph, and in proportion to the ratio between the total duration of the Periods of Coverage completed before the contingency arose under the Laws of Romania and the total duration of the Periods of Coverage completed before the contingency arose under the Laws of both Contracting States.
If the amount of the Benefit is determined taking into account the number of the beneficiaries, the Competent Institution of Romania also takes into account the beneficiaries who Reside in the territory of the United States.
If a Benefit is calculated based on earnings, due contributions, or paid contributions during a certain period, the Competent Institution of Romania shall take into consideration the earnings, due contributions, or paid contributions exclusively for the Periods of Coverage accomplished according to the Laws of Romania.
Article 12
Romanian Period of Coverage of Less Than One Year
Notwithstanding the provisions of Article 10 of this Agreement, where the total duration of the Periods of Coverage completed under the Laws of Romania is less than one year and where, on the basis of such Periods of Coverage only, no right is acquired under the Laws of Romania, the Competent Institution of Romania shall not award Benefits based on such Periods of Coverage.
Article 13
Consideration of Periods of Coverage in a Third State by the Competent Institution of Romania
If, after applying the provisions of Article 10, a person fails to fulfill the conditions for acquiring a right to a Benefit, the Competent Institution of Romania shall take into account periods of coverage completed under the laws of a third State with which both Contracting States have concluded social security agreements which provide for the aggregation of Periods of Coverage.
Article 14
Assignment of Periods of Coverage
Where it is not possible to determine the time in the calendar year during which a specific Period of Coverage was completed under the Laws of a Contracting State, the other Contracting State will presume that the Period of Coverage does not coincide with a Period of Coverage completed under its Laws.
Article 15
Death Grant
A death grant or a lump-sum death payment shall be exclusively awarded according to the Laws of each Contracting State and this Agreement.
PART IV
MISCELLANEOUS PROVISIONS
Article 16
Article 16
Administrative Measures and Cooperation
The Competent Authorities of the two Contracting States shall:
conclude an Administrative Arrangement for the implementation of this Agreement and designate Liaison Institutions;
communicate to each other information concerning the measures that have been taken or will be 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 17
Mutual Assistance
The Competent Authorities, the Liaison Institutions, and the Competent Institutions, within the scope of their respective competencies, shall assist each other in implementing this Agreement. This assistance shall be free of charge, subject to exceptions provided for by the Administrative Arrangement and by Article 18 of this Agreement.
Article 18
Medical Examinations
Medical examinations of persons in the territory of one of the Contracting States which are required under the Laws of the other Contracting State shall be arranged by the Competent Institution of the first Contracting State upon the request and at the expense of the requesting Competent Institution. If medical examinations are needed for the application of the Laws of both Contracting States, they shall be arranged through and at the expense of the Competent Institution where the person Resides.
Article 19
Confidentiality of Exchanged Personal Information
Unless otherwise required by the national statutes of a Contracting State, Personal Information transmitted in accordance with this Agreement to one Contracting State by the other Contracting State shall be used exclusively for purposes of implementing this Agreement and the applicable Laws. The receiving Contracting State's national statutes for the protection of privacy and confidentiality of Personal Information and the provisions of this Agreement shall govern such use.
The Competent Authorities shall inform each other about all amendments to their national statutes regarding the protection of privacy and confidentiality of Personal Information that affect the transmission of Personal Information.
The Liaison Institution transmitting Personal Information pursuant to this Agreement shall take all reasonable steps to ensure that transmitted Personal Information is accurate and does not exceed the purpose for which the Personal Information is collected and processed. In accordance with their respective national statutes, the receiving institution shall correct or delete any inaccurate or excessive Personal Information transmitted under this Agreement, and immediately notify the other Contracting State’s institution of such correction. This shall not limit a person’s right to request such correction or deletion of his or her Personal Information directly from the institutions.
The transmitting and the receiving Liaison Institution shall effectively protect Personal Information against unauthorized or illegal access, alteration, or disclosure.
Article 20
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 exclusively for purposes of implementing this Agreement and the applicable Laws. 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 21
Documents
Where the Laws of a Contracting State provide that any document which is submitted to the Liaison Institution 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 Liaison Institution of the other Contracting State in the application of this Agreement.
Documents presented for purposes of this Agreement shall be exempted from requirements for authentication by diplomatic or consular authorities.
Copies of documents certified as true and exact copies by a Competent Institution of one Contracting State shall be accepted as true and exact copies by a Competent Institution of the other Contracting State, without further certification. The Competent Institution of each Contracting State shall make the final decision on the probative value of the evidence submitted to it from whatever source.
Article 22
Correspondence and Language
For the purposes of applying this Agreement, the Competent Authorities and Liaison Institutions of the Contracting States may correspond in Romanian or English directly with each other and with any person, wherever the person may Reside.
An application or document may not be rejected solely because it is in the language of the other Contracting State.
Article 23
Correspondence and Language
The date that a written claim for a Benefit is submitted under the Laws of a Contracting State shall be considered to be the date that a claim for a corresponding Benefit is submitted under the Laws of the other Contracting State, provided that the claimant, at the time of application:
requests that it be considered a claim under the Laws of the other Contracting State; or
provides information indicating that Periods of Coverage have been completed under the Laws of the other Contracting State and has not explicitly requested that the claim be restricted to Benefits under the Laws of the first Contracting State.
The provisions of Part III of this Agreement shall apply only to Benefits for which a claim is filed on or after the date on which this Agreement enters into force.
Article 24
Documents
A written appeal of a determination made by a Competent Institution of one Contracting State may be validly filed with a Competent Institution 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 a Competent Institution of that Contracting State, but which is instead filed within the same period with a Competent Institution of the other Contracting State, shall be considered to have been filed on time.
Article 25
Transmittal of Claims, Notices, and Appeals
In any case to which the provisions of Article 23 or Article 24 of this Agreement apply, the Competent Institution 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 Institution of the other Contracting State.
Article 26
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, both Contracting States shall immediately take measures necessary to ensure the transfer of sums owed under this Agreement.
Article 27
Resolution of Disputes
Any dispute regarding the interpretation or application of this Agreement shall, if possible, be resolved by consultations between the Competent Authorities.
If the dispute is not resolved by consultations between the Competent Authorities, it shall be submitted to be resolved by consultations between the Contracting States through diplomatic channels.
PART V
TRANSITIONAL AND FINAL PROVISIONS
Article 28
Transitional Provisions
This Agreement shall not establish any right to a Benefit for any period before the date of entry into force of this Agreement, or to a lump-sum death payment if the person died before the entry into force of this Agreement.
Except as otherwise provided in 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 relevant events that occurred before the entry into force of this Agreement.
In applying paragraphs 1, 2, 3, 4, or 7 of Article 7 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 or self-employment referred to in those paragraphs shall be considered to begin on the date of entry into force of this Agreement.
Decisions 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 its entry into force.
Article 29
Duration and Termination
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 through diplomatic channels.
If this Agreement is terminated, rights regarding entitlement to or payment of Benefits acquired under it shall be retained. Notwithstanding such termination, the provisions of this Agreement shall continue to apply to any claim for Benefits submitted prior to termination. The Contracting States shall consult regarding other rights in the process of being acquired.
Article 30
Entry into Force
This Agreement shall enter into force on the first day of the fourth month following the date of the last note in which the Contracting States notify each other, through diplomatic channels, of the completion of their respective internal procedures necessary for the entry into force of this Agreement.
IN WITNESS WHEREOF, the undersigned, being duly authorized thereto, have signed this Agreement.
DONE at Bucharest, on the 23rd of March, 2023, in duplicate, in the English and Romanian languages, both texts being equally authentic.
FOR THE COMPETENT AUTHORITY OF THE UNITED STATES OF AMERICA:
Kathleen Kavalec
FOR THE COMPETENT AUTHORITY OF ROMANIA:
Marius-Constantin Budăi