The diplomatic notes exchanged between the United States and Portugal on May 1, 1968 provide that U.S. nationals who are outside Portugal may apply for and receive Portuguese social security benefits to which they are entitled without regard to the duration of their absence from Portugal and without reduction due to such absence. In recognition of this fact, the notes confirm that Portugal has a social security system which meets the conditions specified in section 202(t)(2) of the U.S. Social Security Act to permit U.S. social security benefits to be paid outside the United States to Portuguese citizens without restriction due to their absence from the United States. Since Article 3.2 of the present Agreement guarantees that each country will pay its benefits to residents of the other country, Article 21.1 terminates the 1968 notes effective with the Agreement's entry into force. Article 21.1 also includes a proviso, however, to ensure that the termination of the 1968 notes does not affect the benefit portability rights of U.S. and Portuguese nationals in third countries. Under the proviso, U.S. nationals outside Portugal will continue to receive Portuguese benefits without restriction whether they are present in the United States or a third country. In accordance with section 202(t)(2) of the Social Security Act, therefore, U.S. benefits will continue to be paid to Portuguese nationals outside the United States whether they are in Portugal or a third country.
