Proclamation Declaring the Second Supplementary Agreement Amending the Agreement on Social Security Between Canada and the United States of America in Force October 1, 1997 — Proclamation Declaring the Second Supplementary Agreement Amending the Agreement on Social Security Between Canada and the United States of America in Force October 1, 1997
Chapter 2 of Part III of the Agreement is deleted, and the following new Chapter 2 is substituted in its place: “CHAPTER 2 Provisions Applicable to Canada ARTICLE VIII (1) (a) If a person is not entitled to the payment of a benefit because he or she has not accumulated sufficient periods of residence under the Old Age Security Act , or periods of coverage under the Canada Pension Plan , the entitlement of that person to the payment of that benefit shall, subject to sub-paragraph (1)(b), be determined by totalizing these periods and those specified in paragraph (2), provided that the periods do not overlap. (b) In the application of sub-paragraph (1)(a) of this Article to the Old Age Security Act : (i) only periods of residence in Canada completed on or after January 1, 1952, including periods deemed as such under Article VI of this Agreement, shall be taken into account; and (ii) if the total duration of those periods of residence is less than one year and if, taking into account only those periods, no right to a benefit exists under that Act, the agency of Canada shall not be required to pay a benefit in respect of those periods by virtue of this Agreement. (2) (a) For purposes of determining entitlement to the payment of a benefit under the Old Age Security Act , a quarter of coverage credited under United States laws on or after January 1, 1952 and after the age at which periods of residence in Canada are credited for purposes of that Act shall be considered as three months of residence in the territory of Canada. (b) For purposes of determining entitlement to the payment of a benefit under the Canada Pension Plan , a calendar year including at least one quarter of coverage credited under United States laws shall be considered as a year of coverage credited under the Canada Pension Plan . ARTICLE IX (1) If a person is entitled to the payment of an Old Age Security pension or a spouse’s allowance solely through the application of the totalizing provisions of Article VIII, the agency of Canada shall calculate the amount of the pension or spouse’s allowance payable to that person in conformity with the provisions of the Old Age Security Act governing the payment of a partial pension or a spouse’s allowance, exclusively on the basis of the periods of residence in Canada on or after January 1, 1952 which may be considered under that Act or are deemed as such under Article VI of this Agreement. (2) Paragraph (1) shall also apply to a person outside Canada who would be entitled to the payment of a full pension in Canada but who has not resided in Canada for the minimum period required by the Old Age Security Act for entitlement to the payment of a pension outside Canada. (3) Notwithstanding any other provision of this Agreement: (a) an Old Age Security pension shall be paid to a person who is outside Canada only if that person’s periods of residence, totalized as provided in Article VIII, are at least equal to the minimum period of residence in Canada required by the Old Age Security Act for entitlement to the payment of a pension outside Canada; and (b) a spouse’s allowance and a guaranteed income supplement shall be paid to a person who is outside of Canada only to the extent permitted by the Old Age Security Act . ARTICLE X If a person is entitled to the payment of a benefit under the Canada Pension Plan solely through the application of the totalizing provisions of Article VIII, the agency of Canada shall calculate the amount of benefit payable to that person in the following manner: (a) the earnings-related portion of the benefit shall be determined in conformity with the provisions of the Canada Pension Plan , exclusively on the basis of the pensionable earnings under that Plan; and (b) the flat-rate portion of the benefit shall be determined by multiplying: (i) the amount of the flat-rate portion of the benefit determined in conformity with the provisions of the Canada Pension Plan by (ii) the fraction which represents the