U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

29–011 2013

113th Congress, 1st Session – – – – – – – – – – – – – House Document 113–62 

AGREEMENT ON SOCIAL SECURITY BETWEEN THE 

UNITED STATES AND THE SLOVAK REPUBLIC 

MESSAGE 

FROM

THE PRESIDENT OF THE UNITED STATES 

TRANSMITTING

AN AGREEMENT ON SOCIAL SECURITY BETWEEN THE UNITED 

STATES OF AMERICA AND THE SLOVAK REPUBLIC 

SEPTEMBER 18, 2013.—Message and accompanying papers referred to the 

Committee on Ways and Means and ordered to be printed 


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To the Congress of the United States: 

Pursuant to section 233(e)(1) of the Social Security Act, as 

amended by the Social Security Amendments of 1977 (Public Law 

95–216, 42 U.S.C. 433(e)(1)) (the ‘‘Social Security Act’’), I transmit 

herewith an Agreement on Social Security between the United 

States of America and the Slovak Republic (the ‘‘United States-Slovak Republic Totalization Agreement’’). The Agreement consists of 

two separate instruments: a principal agreement and an administrative arrangement. The Agreement was signed in Bratislava on 

December 10, 2012. 

The United States-Slovak Republic Totalization Agreement is 

similar in objective to the social security totalization agreements 

already in force with most European Union countries, Australia, 

Canada, Chile, Japan, Norway, and the Republic of Korea. Such bilateral agreements provide for limited coordination between the 

United States and foreign social security systems to eliminate dual 

social security coverage and taxation and to help prevent the lost 

benefit protection that can occur when workers divide their careers 

between two countries. The United States-Slovak Republic Totalization Agreement contains all provisions mandated by section 233 

of the Social Security Act and other provisions that I deem appropriate to carry out the purposes of section 233, pursuant to section 

233(c)(4) of the Social Security Act. 

I also transmit for the information of the Congress a report prepared by the Social Security Administration explaining the key 

points of the United States-Slovak Republic Totalization Agreement, along with a paragraph-by-paragraph explanation of the provisions of the principal agreement and administrative arrangement. Annexed to this report is another report required by section 

233(e)(1) of the Social Security Act on the effect of the United 

States-Slovak Republic Totalization Agreement on income and expenditures of the U.S. Social Security program and the number of 

individuals affected by the United States-Slovak Republic Totalization Agreement. 

BARACK OBAMA. 

THE WHITE HOUSE, September 17, 2013. 


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AGREEMENT ON SOCIAL SECURITY 

BETWEEN 

THE UNITED STATES OF AMERICA 

AND 

TilE SLOVAK REPUBLIC 
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The United States of America and 

the Slovak Republic (hereinafter referred to as "the Contracting States"), 

Being desirous of regulating the relationship between their two countries in the field 

of Social Security, have agreed as follows: 

PART I 

General Provisions 

Definitions 

1. For the purposes of this Agreement: 

(a) "United States" means, 

the United Stales of America; 

(b) "national" means, 

as regards the United States; a national of the United States as defmed 

in Section 101, Immigration and Nationality Act, as amended, and 

as regards the Slovak Republic, a state citizen of the Slovak Republic; 

(c) "laws" means the laws and regulations specified in Article 2 of this 

Agreement; 
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(d) "Competent Authority" means, 

as regards the United States, the Commissioner of Social Security, 

and 

as regards the Slovak Republic, the Ministry of Labour, Social Affairs 

and Family of the Slovak Republic; 

(e) "agency" means, 

as regards the United States, the Social Security Administration, and 

as regards the Slovak Republic, an institution responsible for 

implementing the laws specified in Article 2 of this Agreement; 

(f) "period of coverage" means a period of payment of contributions or a 

period of eamings 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; 

(g) "benefit" means any benefit provided for in the laws specified in 

Article 2 of this Agreement; and 

(h) ·personal data" means any information relating to a specific 

(identified or identifiable) person, as well as any information which 

can be used to distinguish or trace an individual's identity. This 

includes, but is not limited to, the following: any individual identifier; 

citizenship, nationality, statelessness or refugee status; benefits, 

eligibility or other claims information; contact information; medical 

information or lay information used in a medical determination; 

information about marital, familial or personal relationships; and 

information pertaining to work, financial or economic status. 

2. Any term not defined in this Article shall have the meaning assigned to it in 

the applicable laws. 
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Material Scope 

I. For the purposes of this Agreement, the applicable laws are: 

(a) as regards the United States, the laws governing the Federal old-age, 

survivors and disability insurance program: 

(i) TItle II of the Social Security Act aod regulations pertaining 

thereto, except sections 22'6, 226A and 228 of that title, and 

regulations pertaining to those sections, 

(ii) Chapters 2 and 21 of the Internal Revenue Code of 1986 and 

regulations pertaining to those chapters; 

(b) as regards the Slovak Republic, 

(i) the Act on Social Insurance, sections pertaining to pension 

benefits (old-age benefits, early retirement benefits, disability 

benefits, widows and widowers benefits and orphans 

benefits), 

(ii) with regard to Part II of this Agreement only, to the Act on 

Sociallnsurance, sections referring to participation in Social 

Insurance. 

2. Unless otherwise provided in this Agreement, the laws referred to in 

paragraph I of this Article shall not include treaties or other international 

agreements or supranational legislation on social security concluded between 

one Contracting State and a third State, or laws or regnlations promUlgated 

for their specific implementation, 

3. No provision in this Agreement shall affect the obligations of the 

Slovak Republic's social security agreements with third countries or any 

other international agreements by which the Slovak Republic is bound. 
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4. Except as provided in the following sentence, this Agreement shall also apply 

to legislation which amends or supplements the laws specified in 

paragraph I. 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 ofthat 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 the Agreement is intended. 

Personal Scope 

This Agreement shall apply: 

(a) to any person who is or has been subject to the laws of either 

Contracting State, and 

(b) to the dependents and survivors of such a person within the meaning 

of the applicable laws of either Contracting State. 

Equality of Treatment and Portability of Benefits 

1. Persons described in Article 3 of this Agreement who reside in the territory 

of a Contracth:.g 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. 

2. 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. 
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PART II 

Provisions Concerning Applicable Laws 

Coverage Provisions 

1. Except as otherwise provided in this Article, a person employed within the 

territory of one of the Contracting States sball, with respect to that 

employment, be subject to the laws of only that Contracting State. 

2. Where a person who is normally employed in the territory of one 

Contracting State by an employer in that territory is sent by that employer to 

the territory of the other Contracting State for a temporary period, 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, provided that the 

period of employment in the territory of the other Contracting State is not 

expected to exceed five years. For purposes of applying this paragraph in the 

case of an employee who is sent from the territory of the United States by an 

employer in that territory to the territory of the Slovak Republic, that 

employer and an affiliated company of the employer (as defined under the 

laws of the United States) shall be considered one and the same, provided 

that the employment would have been covered under United States laws 

absent this Agreement. 

3. Paragraph 2 of this Article shall 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 by that employer from the territory of the third State to the 

territory of the other Contracting State. 

4. A person who is normally self-employed in the territory of one 

Contracting State, and who temporarily transfers his or her self-employment 

activity to the territory of the other Contracting State shall be subject to the 

laws of only the first Contracting State, provided that the period of 

self-employment activity in the territory of the other Contracting State is not 

expected to exceed five years. 
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5. 

6. 

(a) 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 Jaws 

of the United States. 

(b) 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. 

(a) This Agreement shall not affect the provisions of the Vienna 

Convention on Diplomatic Relations of April IS, 1961, or of the 

Vienna Convention on Consular Relations of April 24, 1963. 

(b) 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) shall be subject to the laws of only the first 

Contracting State. For the purpose oflhis paragraph, employment by 

the United States Government includes employment by an 

instrumentality thereof. 

7. The Competent Authorities of the two Contracting States may agree to grant 

an exception to the provisions oflhis Article with respect to particular 

persons or categories of persons, provided that any affected person shall be 

subject to the laws of one of the Contracting States. 
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PART III 

Provisions on Benefits 

Benefits under United States Laws 

The following provisions shall apply to the United States: 

1. Where a person has completed at least six quarters of coverage under 

United States laws, but does not have sufficient periods of coverage to satisfY 

the requirements for entitlement to benefits under United States laws, the 

agency 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 Slovak Republic laws and which do not coincide with 

periods of coverage already credited under United States laws. 

2. In determining eligibility for benefits under paragraph 1 of this Article, the 

agency of the United States shall credit one quarter of coverage for every 

90 days of coverage certified by the agency of the Slovak Republic; however, 

no quarter of coverage shall be credited for any calendar quarter already 

credited as a quarter of coverage under United States laws. The total number 

of quarters of coverage to be credited for a year shall not exceed four. The 

agency of the United States shall not take into account periods of coverage 

which occurred prior to the earliest date for which periods of coverage may 

be credited under its laws, nor will the agency of the United States take into 

account any periods of coverage which are not based on contributions. 

3. Where entitlement to a benefit under United States laws is established 

according to the provisions of paragraph I of this Article, the agency of the 

United States shall compute a pro rata Primary Insurance Amount in 

accordance with United States laws based on (a) the person's average 

earnings credited exclusively under United States laws and (b) the ratio of the 

duration of the person's periods of coverage completed under United States 

laws to the duration of a coverage lifetime as detennined in accordance with 

United States laws. Benefits payable under United States laws shall be based 

on the pro rata Primary Insurance Amount. 
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4. Entitlement to a benefit from the United States which results from 

paragraph 1 of this Article shall tenninate with the acquisition of sufficient 

periods of coverage under United States laws to establish entitlement to an 

equal or higher benefit without the need to invoke the provision of 

paragraph 1 of this Article. 

5. The United States agency will pay a lump-sum death benefit under this 

Agreement provided the person on whose record benefits are being claimed 

died on or after the date of entry into force of this Agreement. 

Benefits under Slovak Republic Laws 

The following provisions shall apply to the Slovak Republic: 

1. If, under the laws of the Slovak Republic, a person is not eligible for a 

benefit because he or she has not accumulated sufficient periods of coverage, 

the agency of the Slovak Republic will take into account periods of coverage 

under United States laws provided such periods do not coincide with periods 

of coverage already credited under Slovak Republic laws. 

2. For the purpose of establishing eligibility for a benefit pursuant to 

paragraph 1, the agency of the Slovak Republic will credit 90 days of 

insurance for each quarter of coverage under United States laws. The agency 

of the Slovak Republic shall credit the total number of days in a calendar 

year for four quarters of coverage under United States laws in the same 

calendar year. 

3. When it is not possible to'detennine the time when periods of coverage were 

completed under United States laws within a specific calendar year, it shall 

be presumed that such periods do not coincide with periods of coverage 

completed under Slovak Republic laws. Such periods may be allocated to 

any time during the year, in the manner most advantageous for the person. 

4. The agency of the Slovak Republic shall detennine the benefit amount by 

taking ioto account only periods of coverage credited under the laws of the 

Slovak Republic. This shall not apply if, under the laws of the 

Slovak Republic, the person is eligible for the benefit only by taking into 
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account periods of coverage credited under the laws of both 

Contracting States, and if internal regulations do not allow the determination 

of the benefit amount based solely on periods of coverage credited under 

Slovak Republic laws. 

5. The benefit amount described in the second sentence of paragraph 4 of this 

Article shall be determined in the following manner: 

(a) The Slovak Republic agency shall first determine whether a person 

meets eligibility requirements for a benefit under Slovak Republic 

laws after taking into account combined periods of coverage under 

the laws of both Contracting States. 

(b) If a person is eligible for a benefit under subparagraph (a) of this 

paragraph, the Slovak Republic agency shall then calculate the 

theoretical benefit amount as if all periods of coverage under the laws 

of both Contracting States had been completed solely under 

Slovak Republic laws. 

(c) Based on the theoretical benefit amount, the Slovak Republic agency 

shall calculate the benefit amount by multiplying the theoretical 

amount by the ratio of the periods of coverage credited under 

Slovak Republic laws to the total periods of coverage credited under 

the laws of both Contracting States. 

6. If a person has not been credited with 12 months of coverage under 

Slovak Republic laws, no Slovak Republic benefit is payable under the 

Agreement. The precediog sentence does not apply if entitlement to a benefit 

can be established based solely on periods of coverage credited under 

Slovak Republic laws. If a person has been credited with fewer than 

six quarters of coverage under United States laws, the Slovak Republic 

agency shall credit such periods of coverage to calculate the benefit amount 

under Slovak Republic laws. 
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7. A person whose disability began while he or she was a minor, a dependent or 

a regular doctoral studies student under age 26, and whose disability claim is 

established without the requirement that he or she perform work activity to 

obtain periods of coverage, may establish eligibility for disability benefits on 

the condition that such person permanently resides in the territory of the 

Slovak Republic. 

PARTN 

Miscellaneous Provisions 

Administrative Measures 

The Competent Authorities of the two Contracting States shall: 

(a) conclude an administrative arrangement and take all necessary 

administrative measures for the implementation of this Agreement; 

(b) communicate to each other information concerning the measures 

taken for the application of this Agreement; and 

(c) communicate to each other, as soon as possible, information 

concerning all changes in their respective laws which may affect the 

application of this Agreement. 

Mutual Assistance 

The Competent Authorities and the agencies of the Contracting States, within the 

scope of their respective authorities, shall assist each other in implementing this 

Agreement. This assistance shall be free of charge, subject to exceptions to be 

agreed upon in an administrative arrangement. 
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Confidentiality of Exchanged Personal Data 

1. Unless otherwise required by the national statutes of a Contracting State, 

personal data transmitted in accordance with this Agreement to one 

Contracting State by the other Contracting State shall be used for purposes of 

administering this Agreement and the laws in Article 2 of this Agreement. 

The receiving Contracting State's national statutes for the protection of 

privacy and confidentiality of personal data and the provisions of this 

Agreement shall govern such use. 

2. The Competent Authorities of the Contracting States shall inform each other 

about all amendments to their national statutes regarding the protection of 

privacy and confidentiality of personal data that affect the transmission of 

personal data. 

3. Any subject may request, and the Competent Authority or agency requesting 

or transmitting personal data must disclose to that subject upon such request, 

the content, receiving agency and duration of use of the subject's personal 

data and the purpose and legal grounds for which such data were used or 

requested. 

4. The agencies shall take all reasonable steps to ensure that transmitted 

personal data are accurate and limited to data required to fulfill the receiving 

agency's request. In accordance with their respective national statutes, the 

agencies shall correct or delete any inaccurate transmitted personal data and 

any data not required to fulfill the receiving agency's request, and 

immediately notify the other Contracting State's agency of such correction. 

This shall not limit a subject's right to request such correction directly from 

the agencies. 

5. Both the transmitting and the receiving agencies shall effectively protect 

personal data against unauthorized or illegal access, alteration or disclosure. 
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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 for purposes of administering this Agreement and the laws 

in Article 2 of this Agreement. 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. 

Fee Waiver and Documents 

1. Where the laws of a Contracting State provide that any document which is 

submitted to the Competent Authority or an agency 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 Competent Authority or an agency of 

the other Contracting State in the application of this Agreement. 

2. Documents and certificates which are presented for purposes of this 

Agreement shall be exempted from requirements for authentication by 

diplomatic or consular authorities. 

3. Copies of documents which are certified as true and exact copies by an 

agency of one Contracting State shall be accepted as true and exact copies by 

an agency of the other Contracting State, without further certification. The 

agency of each Contracting State shall be the final judge of the probative 

value of the evidence submitted to it from whatever source. 
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Correspondence and Language 

I. The Competent Authorities and agencies of the Contracting States may 

correspond directly with each other and with any person, wherever the person 

may reside, whenever it is necessary for the administration of this 

Agreement. 

2. An application or document may not be rejected by a Competent Authority or 

agency of a Contracting State solely because it is in the language of the other 

Contracting State. 

Applications 

l. A written application for benefits filed with the agency of one 

Contracting State shall be considered an application for benefits under the 

laws of the other Contracting State, and shall protect the rights of claimants 

under the laws of the other Contracting State if the applicant: 

(a) requests at the time of filing that his or her application be considered 

an application under the laws of the other Contracting State, or 

(b) ifhe or she does not make such a request, provides information at the 

time of filing indicating that the person on whose record benefits are 

claimed has completed periods of coverage under the laws of the 

other Contracting State. 

2. An applicant for benefits under the laws of a Contracting State may request 

that his or her application not be considered an application for benefits under 

the laws of the other Contracting State. 

3, The provisions of Part III shall apply only to benefits for which an 

application is filed on or after the date this Agreement enters into force. 
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Appeals and Time Limits 

I. A v"ritten appeal of a determination made by an agency of one 

Contracting State may be validly filed with an agency of either 

Contracting State. The appeal shall be decided according to the procedure 

and laws of the Contracting State whose decision is being appealed. 

2. Any claim, notice or written appeal which, under the laws of one 

Contracting State, must have been filed within a prescribed period with an 

agency of that Contracting State, but which is instead filed within the same 

period with an agency of the other Contracting State, shall be considered to 

have been filed on time. 

Transmittal of Claims, Notices and Appeals 

In any case to which a provision of Article 14 or 15 of this Agreement applies, the 

agency to which the claim, notice or written appeal has been submitted shall indicate 

the date ofreceipt on the document and transmit it without delay to the agency of the 

other Contracting State. 

Currency 

1. Payments under this Agreement may be made in the currency of the 

Contracting State making the payments. 

2. In case provisions designed to restrict the exchange or exportation of 

currencies are introduced by either Contracting State, the Contracting States 

shall immediately take measures necessary to ensure the transfer of sums 

owed by either Contracting State under this Agreement. 
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Resolution of Disagreements 

Any disagreement regarding the interpretation or application of this Agreement shall 

be resolved by consultation between the Competent Authorities. 

Supplementary Agreements 

This Agreement may be amended in the future by supplementary agreements which, 

from their entry into force, shall be considered an integral part of this Agreement. 

PART V 

Transitional and Final Provisions 

Transitional Provisions 

1. This Agreement shall not establish any claim to payment of a benefit for any 

period before the date of entry into force of this Agreement. 

2. In determining the right to benefits under this Agreement, consideration shall 

be given to periods of coverage under the laws of either Contracting State 

and other events which occurred before the entry into force of this 

Agreement. 

3. In applying paragraph 2 or 4 of Article 5, in the case of persons who were 

sent by their employer or who transferred their self-employment activity 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 the 

entry into force of this Agreement. 
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4. Determinations concerning entitlement to benefits which were made before 

the entry into force of this Agreement shall not affect rights arising under it. 

5. 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. 

Entry into Force 

I. This Agreement is subject to approval according to the applicable procedures 

or intemallegislative regulations of each Contracting State. 

2. 1ms Agreement shall enter into force on the first day of the third calendar 

month following the month in which the Contracting States inform each 

other by a written notification that all necessary statutory and constitutional 

requirements for the entry into force of this Agreement have been fulfilled. 

3. Nothing in this Agreement shall supersede the notes concerning the payment 

of social security henefits exchanged between the United States and 

Czechoslovak Governments on June 20 and July 12, 1968. 

Duration and Termination 

L This Agreement shall remain in force indefinitely. 

2. This Agreement may be terminated by either Contracting State giving written 

notice of its termination to the other Contracting State. In the event that the 

Agreement is terminated, it shall remain in force until the expiration of 

one calendar year following the year in which a Contracting State receives 

written notice of its termination from the other Contracting State. 

3. If this Agreement is terminated, rights regarding entitlement to or payment of 

benefits acquired under it shall be retained. The Contracting States shall 

make arrangements dealing with rights in the process of being acquired. 
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IN WITNESS WHEREOF, the undersigned, being duly authorized thereto, have 

signed this Agreement 

DONE at (,I'.;IIISLAVA on bu, 1",;{oJ!'. in quplicate in the English and Slovak 

languages, the two texts being equally authentic. 

For the United States of America: For the Slovak Republic: 

/,'if / 

. A liLl 
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ADMINISTRATIVE ARRANGEMENT 

FOR THE IMPLEMENTATION OF THE AGREEMENT 

ON SOCIAL SECURITY 

BETWEEN THE UNITED STATES OF AMERICA 

AND THE SLOVAK REPUBLIC 
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The Competent Authority of the United States of America and 

the Competent Authority of the Slovak Republic, 

In conformity with Article 8(a) of the Agreement between the 

United States of America and the Slovak Republic on Social Security of 

hereinafter referred to a~ the "Agreement," have agreed as follows: 

CHAPTER I 

General Provisions 

Article I 

Where terms which appear in the Agreement are used in this 

Administrative Arrangement, they shall have the same meaning as they have in the 

Agreement. 

Article 2 

1. The agencies defined in paragraph I(e) of Article I of the Agreement shall 

be; 

(a) for the United States, the Social Security Administration; and 

(h) for the Slovak Republic, the Social Insurance Agency. 

2: The agencies shall agree upon the joint procedures, methods and forms 

necessary for the implementation of the Agreement and this 

Administrative Arrangement. 
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CHAPTER II 

Provisions on Coverage 

Article 3 

1. Where the laws of one Contracting State are applicable in accordance with 

any of the provisions of Article 5 of the Agreement, the agency of that 

Contracting State, upon request of the employer and employee, or 

self-employed person, shall issue a certificate stating that the employer, 

employee or self-employed person is subject to those laws and indicating the 

duration for which the certificate shall be valid. This certificate shall be 

proof that the employee or self-employed person is exempt from the laws on 

compulsory coverage of the other Contracting State. 

2. The certificate referred to in paragraph I of this Article shall be issued: 

(a) in the United States, by the Social Security Administration; and 

(b) in the Slovak Republic, by the Social Insurance Agency. 

3. Exceptions according to paragraph 7 of Article 5 of the Agreement will be 

granted: 

(a) in the United States, by the Social Security Administration; and 

(b) in the Slovak Republic, by the Ministry of Labour, Social Affairs and 

Family of the Slovak Republic. 

4. The agency of a Contracting State whicb issues a certificate referred to in 

paragraph I of this Article shall furnish a copy of the certificate or agreed 

upon information from the certificate to the agency of the other 

Contracting State as needed by the agency of the other Contracting State. 
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CHAPTERllI 

Provisions on Benefits 

Article 4 

1. Applications for benefits Wlder the Agreement shall be submitted on forms 

to be agreed upon by the agencies of the two Contracting States. 

2. The agency of the Contracting State with which an application for benefits is 

first filed in accordance with Article 14 of the Agreement shall provide the 

agency of the other Contracting State with such evidence and other 

information in its possession as may be required to complete action on the 

claim. 

3. The agency ofa Contracting State which receives an application that was 

first filed with an agency of the other Contracting State shall without delay 

provide the agency of the other Contracting State with such evidence and 

other available information in its possession as may be required for it to 

complete action on the claim. 

4. The ageney of the Contracting State with which an application for benefits 

has been filed shall verify the information pertaining to the applicant and the 

applicant's dependents and survivors. The types of information to be 

verified shall be agreed upon by the agencies of both Contracting States. 

5. The agencies of the Contracting States shall pay benefits Wlder 

the Agreement directly to the beneficiary or his or her designee. 
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CHAPTER IV 

Miscellaneous Provisions 

Article 5 

1. In accordance with measures to be agreed upon pursuant to paragraph 2 of 

Article 2 of this Administrative Arrangement, the agency of one 

Contracting State shall, upon request of the agency of the other 

Contracting State, furnish available information relating to the claim of any 

specified individual for the pU1}lose of administering the Agreement. 

2. To facilitate the implementation of the Agreement and this 

Administrative Arrangement, the agencies may agree on measures for the 

provision and transmission of the electronic exchange of data. 

Article 6 

The agencies of the two Contracting States shall exchange statistics annually on 

the payments made to beneficiaries under the Agreement for the calendar year 

ending on December 31. These statistics shall include the number of beneficiaries 

and the total amount of benefits under this Agreement, sorted into types of 

benefits. 

Article 7 

1. Where administrative assistance is requested under Article 9 of the 

Agreement, expenses other than regular personnel and operating costs of the 

agency providing the assistance shall be reimbursed, except as may be 

agreed to by the Competent Authorities or agencies of the 

Contracting States. 

2. Upon request, the agency of either Contracting State shall furnish without 

cost to the agency of the other Contracting State any medical information 

and documentation in its possession relevant to the disability of the claimant 

or beneficiary. 
26 


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3. Where the agency of a Contracting State requires that a person in the 

territory of the other Contracting State who is receiving or applying for 

benefits under the Agreement submit to a medical examination, such 

examination, if requested by that agency, shall be arranged by the agency of 

the other Contracting State in accordance with the rules of the agency 

making the arrangements and at the expense of the agency which requests 

the examination. 

4. The agency of one Contracting State shall reimburse amounts owed under 

paragraph I or 3 of this Article upon presentation of a statement of expenses 

by the agency of the other Contracting State. 

Article 8 

This Administrative Arrangement shall enter into force on the date of entry into 

force of the Agreement and shall have the same period of validity. 

DONE at 5MT;rIAY~ on "t<.. Iqz.'L, in duplicate in the English and Slovak languages, 

the two texts being equally authentic. 

FOR THE COMPETENT 

AUTHORITY OF THE 

UNITED STATES OF AMERICA: 

tfu 

FOR THE COMPETENT 

AUTHORITY OF THE 

SLOVAK REPUBLIC: 

0~/jl1; 

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PRINCIPAL AGREEMENT 

AGREEMENT ON SOCIAL SECURITY 

BETWEEN 

THE UNITED STATES OF AMERICA 

AND 

THE SLOVAK REPUBLIC 

The United States of America and 

the Slovak Republic (hereinafter referred to as "the Contr1lCting States"), 

Being desirous of regulating the relationship between their two countries 

in the fulld of Social Security, have agreed as follows: 

PART! 

General Provisions 

Ar!i£ltl 

Definitions 

1. For the purposes of this Agreemel)t: 

(a) "United States" means, 

the United States of America; 

(b) "national" means, 

ANNOTATIONS AND COMMENTS 

Article 1 defines key terms used in the Agreement. 

Article 1.1 (a) permits abbreviated reference to ''United States o

in the Agreement. 

Under section lOl(a)(22} of the Immigration and National

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PRINCIPAL AGREEMENT 

as regards the United States, a national of the United States 

as defined in Section 101, Innnigration and Nationality Act, 

as lImended, and as regards the Slovak RepUblic, a state citizen of the 

Slovak Republic; 

(c) "laws" means the laws and regulations specified in 

Article 2 of this Agreement; 

(d) "Competent Authority" means, 

Ce) 

as regards the United States, the Coinmissioner of 

Social Security, and 

as regards the Slovak Republic, the Ministry of Labour, 

Social Affairs and Family of the Slqvak Republic; . 

"agencyll tneansJ 

-2-

ANNOTATIONS AND COMMENTS 

"the term 'national of the United States' means (A) a ci

United States, or (B) a person who, though not a citUnited States, owes permanent allegiance to the Un

Those in category (B) include natives of American Slimoa

The Law of 19th January J 993 on Citizenship of the Slov

specifies the categories of persons to whom the Slova

accords citizenship. A Slovak Republic citizen is any pe

the Slovak Republic IIllcords citizenshlp. This includes

limited to, a person who carries a valid Slovak Republic 

other valid identity document designating the pe

Slovak Republic citizen. 

The term "laws," as used in the Agreement. refers to eac

social security laws and regulations as set forth in Article 

·Competent Authority," wherever it appears in this 

refers to the government official in each Country w

responsibility for administering the social security progr

provisions of the Agreement 

"Agency," as used in the Agreement, refers 10 the ad

body in each country responsible for taking and proces

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PRINCIPAL AGREEMENT 

as regards the United States, the Social Security 

AdminiS1mtion, and 

as regards the Slovak Republic, an institution responsible 

for implementing the laws specified in Article 2 of this 

Agreement; 

(f) "period of coverage" means a period of payment of 

contributions or a period of earnings from employment or 

self-employment, as defmed or recognized as a period of 

coverage by the laws under which such period has been 

completed, or any similar period insofur as it is recognized 

by such laws as equivalent to a period of coverage; 

(g) "benefit" means any benefit provided for in the laws 

specified in Article 2 of this Agreement; and 

(h) ,'personal data" means any information relating to a specific 

(identificd or identifiable) person, as well as any 

information which can be used to distinguish or trace an 

-3-

ANNOTATIONS AND COMMENTS 

and making coverage determinations under each count

security laws. 

The Social Security Adminis1mtion (SSA) is the agen

United States. Howl\ver, the U.S. Internal Revenue Ser

retains its responsibility for determining Social Security t

based on SSA coverage determinations under the Agreeme

For the Slovak Republic, the agency is the Social Insuran

(SIA). 

"Period of coverage" means any period credited under 

security laws of either country for purposes of determin

eligibility, including periods of covered employ

self-employment. 

"Benefit" refers to old-age, survivors and disability benefi

under the social security Jaws of either country. With res

United States, the term also includes the Jump-sum deat

under section 202(i) of the Social Security Act ("Act"

excludes special age-72 payments provided for certsin 

peJ:S!>ns under section 228 of the Act. 

"Personal data" refers to personally identifiable informat

there is no definition of "personal data" in the Act, 

incorporates and expands upon essential elements of the d

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2. 

1. 

PRINCIPAL AGREEMENT 

individual's identity. This includes, but is not limited to, 

the following: any individual identifier; citizenship, 

nationality, statelessness or refugee status; benefits, 

eligibility or other claims information; contact information; 

medical information or lay information used in a medical 

determination; information about marital, familial or 

personal relationships; and information pertaining to work, 

financial or economic status. 

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 Agteement, the applicable laws are: 

(a) as regards the United States, the laws governing the Federal 

old-age, survivors and disability insurance program: 

(i) Title n of the Social Security Act and regulations 

pertaining thereto. except sections 226, 226A and 

228 of that title, and pertllining tQ. those 

sections, 

(ii) Chapters 2 and 21 of the Internal Revenue Code of 

1986 and regulations pertaining to those chapters; 

-4-

ANNOTATIONS AND COMMENTS 

"information" applying to SSA at 20 CFR 401.25. 

If the Agreement does not define a term, that term has 

meaning as it does under each country's national laws. 

Article 2.1 specifies the laws to which the Agreement appl

For the United States, the Agreement applies to title n of t

also applies to the corresponding lex laws (the Federal Contributions Act-FICA -and the Self-Employment Co

Act-SECA) and any regulations pertaining to those la

Agreement does not apply to Medicare provisions (section

226A of the Act). It also does not apply to provisions 

payments to uninsured individuals age 72 or over under s

of the Act. Persons to whom the Agreement applies who 

Medicare hospital insurance ot age-72 payments without a

of this Agreement may still receive such benefits. 

Although the Agreement does not apply for the pu

entitlement to Medicare. a worker who has coverage only 

Slovak Republic system because of Article 5 of the Agre

be exempt from health insurance contributions under 

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2. 

3. 

(b) 

PRINCIPAL AGREEMENT 

as regards the Slovak Republic, 

(i) the Act on Social Insurance, sections pertaining to 

pension benefits (old-age benefits, early retirement 

benefits, disability benefits, widows and widowers 

benefits and orphans benefits), 

(ii) with regard to Part IT of this Agreement only, to the 

Act on Social Insurance, sections referring to 

participation in Sociallnsurance. 

Unless otherwise provided in this Agreement, the laws referred to 

in paragraph I of this Arlicle shall not include treaties or other 

international agreements or supranational legislation on social 

security oonclnded between one Contracting State and a third 

State, or laws or regulations promulgated for their specific 

implementation. 

No provision in this Agreement shall affect the obligations of tbe 

Slovak Republic's social security agreements with third countries 

or any other international agreements by which the 

Slovak Republic is bound. 

·5· 

ANNOTATIONS AND COMMENTS 

SBCA. This is in addition to the worker's exem

U.S. retirement, survivors and disability insurance contn'b

For the Slovak Republic, ·the Agreement applies to 

governing the old-age, early retirement, survivors aninsurance (OASO!) benefits programs of the social secu

A worw subject only to U.S. laws under the coverage p

the Agreement and his or her employer. will be exempt fr

contributions for Slovak Republic OASDI, mlllernity an

work injury, unemployment insurance and health 

programs. 

Except as the Agreement itself provides, the laws to 

Agreement epplies do nnt include treaties and other i

agreements. This includes either country's bilateral socagreements with third countries or multilateral agreem

provision ensures that if a person has periods of cove

United States Md the Slovak Republic and periods of co

third country with which either country has a soc

agreement, SSA cannot combine pariods from all three 

meetU.S. benefit eligibility requirements. 

The Slovak Republic requested the inclusion of this pa

provides that none of the provisions of this Agreemen

Slovak Republic's commitments under My bilateral or 

agreements or other armngements. These include, 

limited to, its obliglllions under European Union (EU

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4. Except as provided in the following sentence, this Agreement shall 

also apply to legislation which amends or supplements the laws 

specified in paragraph 1. 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 

the Agreement is intended. 

Article 3 

Personal Scope 

This Agreement shall apply: 

1. 

(a) to any person who is or has been subject to the laws of 

either Contracting State, and 

(b) to the dependents and survivors of su()h II person within the 

meaning of the applicable laws of either Contracting State. 

Article 4 

Equality of Treatment and Portability of BenefitS 

Persons described in Article 3 of-this Agreement who reside in 'the 

territory of a Contracting State shall receive equal treatment with 

nationals of the other Contracting State in the application of the 

-6-

ANNOTATIONS AND COMMENTS 

agreements as a member of the European Economic Arand its bilateral agreements with other countries. 

Article 2.4 provides that the Agreement will automatical

any future U.S. or Slovak Republic legislation that a

supplements the laws set forth in paragraph 1. Thi

legislation that creates new categories of beneficiarie

benefits. The country enacting the legislation may exclu

the scope of the Agreement by giving written notice to 

country within 3 months of the legislation's official public

Article 3 specifies the persons to whom the Agreeme

These include persons currently or previously covered un

Slovak RepUblic laws. The Agreement also appli

dependents and survivors of such persons when the law

both countries confer rights to dependents or survivors 

their relationshiP to such persons. 

Article 4.1 provides that persons to whom the Agreem

who reside in the United States or Slovak Republic will 

same treatment regarding benefit rights as that country gi

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2. 

PRINCIPAL AGREEMENT 

laws of the other Contracting State regarding entitlement to or 

payment of benefits. 

Unless otherwise provided in this Agreement, any provisio1} 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 oot be 

applicable to a person who resides in the territory of the other 

Contracting State. 

PART II 

Provisions Concerning Applicable Laws 

Coverage Provisions 

-1-

nationals. The intent of this provision is to eliminate dis

based on a person's nationality with respect to benefits. I

affect restrictions on benefit eligibility or payment becau

is not lawfully present in that country or did not have pe

work in that country. The provision also does oot affect th

provisions of either country's laws, since Part n of the 

deals with social security coverage. 

Article 4.2 provides that where the laws of either coun

residence in that country in order to qualify for or rec

security benefits, a person may also qualify for and 

benefits while residing in the other country. By vi

exchange of diplomatic notes in 1968 (see Article 21.3) 

published finding about the Slovak Republic's social secu

(see 63 Fed. Reg. 41,314), the United States has long paid 

Slovak Republic (formerly Czechoslovak) citizens who do 

U.S. resideocy requirements for benefit payment containe

202(1)(1) of the Act. However, the nonpayment exceptio

to other U.S. payment restrictions based on residency re

fot dependents and survivors; e.g., section 202(1)(11) o

Further, both countries intend that tmder the Agreement 

either country may qualify or receive benefits while res

other country. Accordingly. under section 233(c)(2) of 

Agreement will permit the United States to pay depe

survivors currently subject to such residency reqn1re.lllent

certain persons who are third country nationals residincountry. 

Part II eliminates dual social security coverage, which oc

worker must pay social security taxes to both countries f

earnings. The Agreement complies with the existin

provisions under the laws of both countries except when n

prevent payment of social security taxes to both count

same earnings. The provisions in this Part retain the wor

security coverage and taxation in the country to whose e

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1. 

2. 

.g. 

PRINCIPAL AGREEMENT 

Except as otherwise provided in this Article, a person employed 

within the territory of one of the Contracting States shall, with 

respect to that employment, be subject. to the laws of only that 

Contracting State. 

Where a person who is normaDy employed in the territory of one 

Contracting State by an employer in that territory is sent by that 

employer to the territory of the other Contracting State for a 

temporary period, the person shall be subject to the laws of only 

the flISt Contracting State as if the person were employed in the· 

territory of the first Contracting State, provided that the period of 

employment in the territory of the other Contracting State is not 

expected to exceed five years. For purposes of applying this 

paragraph in the case of an employee who is sent :from the territory 

of the United States by an employer in that territory to the territory of the Slovak Republic, that employer and an affiliated company of 

the employer (as defined under the laws of the United States) shall 

considered Qne and the same, prpvided that the employment 

would have been covered under United States laws absent this 

Agreement. 

ANNOTATIONS AND COMMENTS 

or she has the more direct connection while exempting 

from coverage and taxation under the other countrY's syste

Article 5.1 establishes a basic territoriality rule, s

ordinarily, only the countrY in which a person is wo

compulsorily cover the worker's employment in tha

Employment that both countries would otherwise cover w

covered exclusively under the system of the countrY 

worker is working. Such employment will be exempt :fro

under the other country's system. 

Under Article 5.2, an employee who normally wor

employer located jn the United States or in the Slovak Re

temporarily traosfers to work in the other countrY for 

employer will continue to pay social security taxes to the 

the country mm which the employee transferred. Th

apply only if the employer expects the period of tran

5 years or less. 

Article 5.2 a1s() applies to certain workers whose emploUnlted States send them to work for a subsidiary or other 

that employer in the Slovak Republic. U.S. law allows 

companies to extend U.S. Social Security coverage to Uand resident aliens employed by an affilial:i:d COllljl8IlY 

countrY. To do this, the parent company in the United 

enter into an agreement with the IRS to pay Soci

contributions on behalf of all U.S. citizens and residents afllliate employs. Under Article 5.2, U.S. citizens or resan American employer sends to worlc for a Slovak Repub

for S years or less will continue to have coverage iu the U

and be exempt from Slovak Republic coverage and contan IRS agreement covers the affiliate. 

In determining the length of a transfer for worlcers whos

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3. 

4. 

5. 

PRINClPALAGREEMENT 

Paragraph 2 of this Article shall apply where a person who bas 

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 wider the laws of that Contracting State 

while employed in the territory of the third State, is subsequently 

sent by that employer nom the terrltory of the third State to the 

terrltory of the other Contracting State. 

A person who is normally self-employed in the territory of one 

Contracting State, and who temporarily transfers his or her 

self-employment activity to the lerritoryof the other 

Contraeting State shall be to the laws of only the first 

Contracting State, provided that the period of self-employment 

activity in the territory of the other Contracting State is not 

expected to exceed five years. 

(a) 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 Stales 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 defmed as an American 

vessel under the laws ofthe United States. 

-9-

ANNOTATIONS AND COMMENTS 

sent them from one country to the other before the 

entered into foree, both countries will ignore any peri

before the Agreement's entry into force. (See Article 20.3

Under Article 5.3, the provisions of Article 5.2 will apply 

employee did not transfer directly from one country to th

first transferred to work in a third country. 

Article 5.4 provides that a person who is self-emplo

country who transfers his or her trade or business to 

country for a period of 5 years or less will remain cove

the country from which he or she moved. This rule will a

the self-employed person expects the period of tran

5 years or less. 

In determining the duration of such a transfer for a p

moves his or her business to the other country before the 

enters into force, Article 20.3 provides tbet both cou

ignore any period of self-employment before the Agreeminto fOl:Ce. 

Article 5.5(a) slates that an employee on a U.S. or Slov

ship, who would otherwise have coverage in both cou

have coverage only in the country whose flag the 

U.S. law considers a ship to fly the flag of the United S

Act defines it as an American vessel. Secti.on 210(c) 

defines an American vessel as one that is, "documented o

under the laws of the United States; and inclndes any ves

neither documented or numbered under the laws of the U

nor documented under the laws of any foreign country, i

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6. 

(b) 

(a) 

-10-

PRINCIPAL AGREEMENT 

Traveling employees of air transportation companies who 

perfonn work in the territories of both Contracting States 

and who would otherwise be covered under the laws of 

both Contracting Slates shall, with respect to thet 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. 

This Agieement shall not affect the provisions of the 

Vienna Convention on Diplomatic Relations of 

April 18, 1961, or of the Vienna Convention on Consnlar 

Relations of April 24, 1963. 

(b) 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 

ANNOTATlONSAND COMMENTS 

employed solely by one or more citizens or reside

United States or corporations organized under the laUnited States Or of any State." 

Under Article 5.S(b), a member of the flight crew of 

operating between the United States and the Slovak Re

would otherwise have coverage in both countries will hav

only in the country in which the c,ompany employing the 

its headquarters. However, if the employee resides i

country, he or she will only have coverage in thet country

Article 5.6(a) specifies thet the coverage proVISIo

Agreement will not affect the persons to w

Vienna Conveations on diplomatic and consular relat

The Conventions, to which hoth the United State

Slovak Republic are parties, ajlply to members of the 

diplomatic or consular mission. This includes the consular, administrative and technical staffs; family m

such staff who form part of their households; the dome

staff of the mission: and private servants whom the mem

missions e.mploy. 

The Vienna Conveations usually exempt such persons 

security, coverage and contributions in the host couspecific arrangements waive their immunity from taxatio

whose immunity such arrangements waive would be su

laws of the host country and the coverage provisio

Agreement. 

Under Article 5.6(b), if a U.S. or Slovak Republic nationhis or her country's government in the other count

Vienna Conventions do not apply to this person, the pe

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7. 

-11-

PRINCIPAL AGREEMENT 

exempt from the laws of the other Contracting State by 

virtue of the Conventions mentioned in subparagraph (a) 

shall be subject to the laws of only the first 

Contracting State. For the pwpose of this paragraph, 

employment by the United States Government includes employment by an instrumentality thereof. 

The Competent Authorities of the two Contracting States may 

agree to grant an exception to the provisions of this Article with 

respect to particular persons or categories of persons, provided that 

any affected person shall be subject to the laws of one of the 

Contracting States. 

PART III 

Provisions on Benefits 

Article 6 

Benefits under United States Laws 

The following provisions shall apply to the United States: 

ANNOTATIONS AND COMMENTS 

subject only to his or her country's Jaws. This provision 

U.S. Government and Slovak Republic Government empwell as to persons working for a U.S. Government instrume

Under Article 5.7, either country may grant an excepti

coverage rules of the Agreement if the other country agre

person involved retains coverage in one of the countrie

counby may grant anch an exception to. an individual work

wolkers under similar circumstances, e.g., in the same pro

working for the same employer. This provision a

Competent Authorities to·resolve anomalous coverage situ

are unfavorable to workers or to eliminate dual co

unforeseen circumstances. 

Part III establishes the basic rules for determining soci

benefit entitlement when an individual has coverage 

countries. It sets out the rules for determining benefit amo

entitlement is possible only with combined work credits. 

deals with the U.S. system, and Article 7 contains rules ap

the Slovak Republic system. 

1. Where a person has completed at least six quarters of coverage Article 6 contains rules for using combined coverage to 

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2. 

3. 

-12-

FIDNCIPALAGREEMENT 

under United Stales laws. but does not have sufficient periods of 

coverage to satisfY the requirements for entitlement to benefits under 

United States laws. the agency 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 

Slovak Republic laws and which do not. coincide with periods of 

coverage already credited under United States laws. 

In determining eligibility for benefits under paragraph 1 of this 

Article, the agency of the United StaleS shall credit one quarter of 

coverage for every 90 days of coverage certified by the agency of 

the Slovak Republic; however, no quarter of coverage shall be 

credited for any calendar quarter already credited as a quarter of 

coverage under United States laws. The total number of quarters of coverage to be Cltedited for a year shall not exceed four. The 

agency of the United States shall not take into account periods of 

coverage which occurred prior to the earliest date for which 

periods of coverage may be credited under its laws, nor will the 

agency of the United StaleS take into accouot any periods of coverage which are not based on contributions. 

Where entitlement to a benefit under United States laws is 

established according to the provisions of paragraph 1 of this 

Article, the agency of the United States shall compute a pro rata 

Primary Insurance Amount in accordaoce with United Stales laws 

based on (a) the person's average earnings credited exclusively 

under United States laws and (b) the ratio of the duration of the 

ANNOTATIONS AND COMMENTS 

U.S. benefit eligibility and amounts. If a person has 

U.S. quarters of coverage, but not enough quarters to U.S. benefits, SSA will take into accouot any periods o

that Slovak Republic laws credit, if these periods do n

with quarters of coverage that the United StaleS already cr

Article 6.2 establishes how SSA will convert periods 

under the Slovak Republic system into equivalent period

U.S. system. The U.S. system measures periods of c

terms of calendar quarters while the Slovak Repub

measures periods of c()verage in days. Beginning in 

bases quarters of coverage on the amount of a pers

earnings (e.g., for 2013, $1,160 in earnings equarter of coverage). Under Article 6.2, SSA will 

quarter of coverage in a calendar year for every 90 days 

that the Slovak Republic agency certifies for thet year. 

provides. a corresponding rule for converting U.S. 

coverage into Slovak Republic periods of cover

determining Slovak Republic benefit eligibility.) SSA w

months of coverage under Slovak Republic laws that f

calendar quarter timt SSA already credited as a U.Scoverage. SSA wiD also not credit more than 4 quarter& 

for any calendar year or consider periods of Slov

coverage credited prior to 1937, the earliest date for whi

permits crediting periods of coverage. 

Article 6.3 describes the method of compoting U.S. ben

when SSA establishes entitlement by totalizing (i.e., 

U.S. and Slovak Republic coverage. Persons whose U

alone qualifies them for U.s. benefits will n

u.s. totalization benefits. 

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4. 

5. 

PRINCIPAL AGREEMENT 

person's periods of coverage completed under United States laws 

to the duration of a coverage lifetime as detennined in accordance 

with United States laws. Benefits payable under United States 

laws shall be based on the pro rata Primary Insurance Amount. 

-13-

Entitlement to a benefit from the United Stalas whioh results from 

paragraph 1 of this Article shall terminate with the acquisition of 

suffioient periods of coverage under United States laws to establish 

entitlement to an equal or higher benefit without the need to invoke 

the provision of paragraph 1 of this Article. 

The United States agency will pay a lump-sum death benefit under 

this Agreement provided the person on whose record benefits are 

being claimed <lied on or after the of entry into fore .• of this 

Agreement 

Article 7 

Benefits under Slovak Republic Laws 

ANNOTATIONS AND COMMENTS 

Under Article 6.3, the amount of the worker's benefit 

both the level of his or her earnings and the duration o

U.S. Social Security coverage. SSA regulations (20 CFR 

describe this computation procedure in detail. The first 

procedure is to compute a theoretieal Primary Insuran

(PIA) as though the worker had spent a full ca

u.s. Social Security at the same level of earnings as durin

actual periods of U.S. covered work. SSA then p

theoretical PIA to reflect the proportion of a covera

completed under the. U.S. program. The regulation

coverage lifetime as the number of years used in de

worker's average earnings under the regular U.S

computation method. 

Article 6.4 provides that if a worker entitled to a U.S. 

benefit acquires additional U.S. coverage that enables th

qualify for an equal or higher benefit based only on 

U.S. coverage. SSA will pay the regular national law b

than the totalization benefit 

Under the Agreement, SSA will pay any lump-sum dea

under section 202(i) of the Act only if the death occurs 

the Agreement's effective date. 

The Slovak Republic pays social security benefits to w

meet the applicable eligibility standards. incl1;ding 

length-of-coverage and other requirements. Under A

Slovak Republic will add the person's U.S. coverage to 

Slovak Republic coverage. if necessary, to meet eligibil

. the person meets the requirements based on combine

Slovak Republic credits, the Slovak Republic will pa

benefit proportioual to the amount of coverage credite

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-14-

PRINCIPAL AGREEMENT ANNOTATIONS AND COMMENTS 

Slovak Republic system. 

SLOVAK REPUBLIC SOCIAL SECURITY BENEFITS 

GENERAL 

The Slovak Republic social security system is a 

structure. It consists of a mandatory defined bene

financed on a pay-as-you-go basis, a fully funded se

invested in individual pension funds (mandatory for n

into the labor market, although an opt out to con1ri

tirst pillar system only is possible), and a voluntary 

which is a tax-de<inetible savings scheme for employe

employees. This Article applies to the tirst pillar system

contributory program that covers almost all residents of 

Republic. The Slovak Republic pays benefits under the t

amounts that it bases primarily on the number o

contributions, the amount of lifetime earnings and a

coefficient designed to guarantee a constant replacemen

second and third pillars exist to supplement the ba

Benefits and contributions under these schemes vary acco

funds in which an employee invests, and the governme

general oversight. . 

OLJ)..AGE BENEFITS 

Retirement age in the Slovak Republic is in the process oPrior to 2004, the retirement age for men was age 6

women, as low as age 53. Starting in 2004, these ag

increase. With each year, the retirement age increases b

until it reaches the age of 62. For men., the retirement age 

For women, the retirement age will be 62 by 2

Slovak Republic system requires a minimum of 15 years 

for entitlement to an old-age pension. A worker may re

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-15-

PRINCIPAL AGREEMENT ANNOTATIONS AND COMMENTS 

he or she is no more than 2 years from retirement age, h

15 years of contributions. ceases all work activity and cam

1.2 times the legally defmed subsistence wage. The Slova

bases its benefit formula on a «points" system. It divides 

individual earnings by the average earnings for all work

the same period. The Slovak Republic agency then mul

quotient by the total periods of coverage under the Slova

system and an actuarial coefficient designed to ensure 

replacement rate. 

DISABILITY BENEFIT!;! 

The Slovak Republic system pays benefits to two 

disability beneficiaries. Full disability benefits are availab

who have at least a 70 percent redoction in capacity to wo

diSability benefits exist for workers suffering ftom a 41 - 

reduction in work capacity. The Slovak Republic bases 

for these benefits on total periods of coverage 

Slovak Republic system. Progressively higher periods o

apply for individuals whose disability began at a later a

person whose disability began prior to age 20 needs less t

of coverage, while a person aged 45 or older needs at lea

of coverage. The Slovak Republic system calculates t

amount for the full disability benefit in exactly the same 

the old..age pension. For the partial disability be

Slovak Republic agency pro-rates this same amount accor

degree of disability by the percerrtage ofloss in work capac

SURVNORS BENEFITS Survivors' benefits are payable to unmarried widow(e

worker, surviving. divorced spouses receiving alimony 

from the worker at the time of his or her death and to chilage 26. For survivors' benefits to be payable, the worke

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-16-

PRINCIPAL AGREEMENT 

The following provisions shall·apply to the Slovak Republic: 

1. If. under the laws of the Slovak Republic, a person is not eligible 

for a benefit because he or she has not accumulated sufficient 

periods of coverage, the agency of the SIQvak Republic will take 

into account periods of coverage under United States laws 

provided such periods do not coincide with periods of eoverage 

already credited under Slovak Republic laws. 

ANNOTATIONS AND COMMENTS 

receiving a benefit at the time of bis or her death, or mu

the factors of entitlement (except for age attainment) at t

his or her death, or his or her death must be the result 

related injury or disease. Widow(er)s receive 60 perc

wOlker's benefit amount at the time of the worker's 

benefit amo\lIlt for surviving divorced spouses cannot e

amount of alimony payments at the time of the worker's d

children of the deceased qualify for 40 percent of the 

worker's pension. The maximum amount payable ba

worker's record is 100 percent of his or her pension amo

time of death. If the total benefits for all erurvivors excee

benefits for all survivors decrease proportionately to 

maximum. 

COST-OF-LIVING ADJUSTMENTS 

Benefits rise according to the Swiss Indexation meth

method uses a composite of changes in the consumer price 

changes in national wages. to determine cost of living ad

Whilc no statute reqJlires. periodic cost of living a

(COLAs). the minimum monthly salary increases annually

Article 7 contains rules for determining Slovak Repul1

eligibility and amounts for people who have periods 

security coverage in both countries, but who do not ha

Slovak Republic coverage to qualify for Slovak Republi

In such cases, the Slovak Republic agency will add U.S. 

coverage 10 periods of Slovak Republic coverage in d

whether a person meets the minimum requirements fo

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2. 

3. 

4. 

·17· 

PRlNClPALAGREEMENT 

For the purpose of establishing eligibility for a benefit pursuant to 

paragraph 1, the agency of the Slovak Republic will eredit 90 days 

of insurance for each quarter of coverage under United States laws. 

The agency of the: Slovak Republic shall credit the total number of 

days in a calendar year for four quarters of coverage lll1der 

United States laws in the same calendar year. 

When it is not possible to determine the time when periods of 

coverage were completed under United States laws within a 

specific calendar year, it shall be presumed that such periods do 

not coincide with periods of coverage completed under 

Slovak Republic laws. Such periods may be allocated to any time 

during the year, in the manner most advantageous for the person. 

The agency of the Slovak Republic shall determine the benefit 

amount by taking into account only periods of coverage credited 

under the laws of the Slovak Republic. This shall not apply if, 

under the laws of the Slovak Republic, the person is eligible for the 

ANNOTATJONSAND COMMENTS 

under Slovak Republic law. 

In combining coverage periods to detennine benefit eli

Slovak Republic agencY will credit 90 days of covera

quarter of coverage SSA (1ertifies. Ar\icle 6.2 

corresponding rule for converting Slovak Republic coverage into U.S. quarters of coverage when 

U.S. benefit eligibility. 

.Article 7.1 stipulates that the Slovak Republic will 

U.S. periods of coverage that coincide with coverag

Slovak Republic already credited. However, it is 

possible to detennine exactly when a person earned cer

ofcov.rage undetthe U.S. system. Beginning in 1978, of crediting quarters of coverage und'll'the U.S. syste

from a quarterly to an annual method. Before 1978

received one quarter of coverage for every calendar quarhe or she earned alleast $50 in covered wages. Current

earns up to four quarters of coverage in a year based on 

of annnaI earnings. The U.S. earnings record therefore i

total ntnnber of quarters of coverage earned in each year 

but not the actoal calendar quarters in which the worker e

Under Article 7.3. the Slovak Republic agencY will 

U.S. quarters of coverage in a calendet year do not overla

of Slovak Republic coverage in the same year, althoug

credit no more than.365 days of coverage in anyone ye

in the case of a leap year). Article 6.2 contains a simil

applicable to the United States. 

Article 7.4 describes the conditions under which the Slov

will pay benefits. A Slovak Republic benefit bas

Slovak Republic coverage will be payable unless a perso

only if the SIA credits both U.S. and Slovak Republic co

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5. 

6. 

-18-

PRINCIPAL AGREEMENT 

benefit only by taking into account periods of coverage credited 

under the laws of both Contracting States, and if internal 

regulations do not allow the determination of the benefit amount 

based solely on periods of coverage credited under 

Slovak Republic laws. 

The b1mefit amount described in the second sentence of 

paragraph 4 of this Article shall be determined in the following 

manner: 

(a) The Slovak Republic agency sbal1 first determine whether a 

person meets eligibility requirements for a benefit under 

Slovak Republic laws after taking into account combined 

periods of coverage, ,lIlIder the laws of both 

Contracting States. 

(b) If a person is eligible for a benefit lIlIder subparagraph (a) 

of this paragraph, the Slovak Republic agency shall then 

calculate the theoretical benefit amount as if all periods of coverage under the laws of both Contracting States had 

been completed solely under Slovak Republic laws. 

(c) Based on the theoretical benefit amount, the 

SlovakRepliblic ,agency shall, the Qenefjt amount 

by multiplying the theoretical amollllt by the ratio of the 

periods of coverage credited under Slovak Republic laws to 

the total periods of coverage credited under the laws of 

both Contracting States. 

If a person has not been credited with 12 months of coverage under 

Slovak Republio laws, no Slovak Republic benefit is payable under 

the Agreement. The preceding sentence does not apply if 

entitlement to a benefit can be established based solely on periods of coverage credited under Slovak Republic laws. If a person has 

ANNOTATIONS AND COMMENTS 

only if Slovak Republic regulations do not permit the comp

a benefit based only on Slovak Republic national laws. 

the U.S. system, the SlOVak Republic system curt'!'ntly ha

and an older computation in place for the determination o

This paragraph states that the agency of the Slovak Republ

the newer method unless its regulations require that it use t

Article 7.5 describes the old method for benefit computat

an Agreement. The Slovak Republic agency will perf

separate benefit calculations. Initially, it will combine 

coverage in the Slovak Republic and in the United Sta

combined coverage meets the length of coverage requirem

Slovak Republic law, the Slovak Republic agency will fir

a theoretical benefit amount as if the worker's U.S. 

coverage had been completed under Slovak Republic law. 

will determine a pro rata benefit amount by mUlti

theoretical amount by the ratio of the periods of coverage 

under Slovak Republic laws to the total periods complet

countries. 

Under Article 7.6, the Slovak Republic system will 

U.S. periods of coverage into accollllt lIlIder the Agreem

worker has fewer than 12 months of Slovak Republic co

cannot establish entitlement to Slovak Republic benefits 

Slovak Republic coverage alone (in limited circumsta

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7. 

-19-

PRINCIPAL AGREEMENT 

been credited with fewer than six quarters of coverage under 

United States laws. the Slovak Republic agency shall credit such 

periods of covetage to calculate the benefit amount under 

Slovak Republic laws. 

A person whose disability began while he or she was a minor, a 

dependent or a regular doctoral studies student under age 26, and 

whose disability claim is established without the requirement that 

he or she perfonn work activity to obtain periods of coveragl:, may 

establish eligibility for disability benefits on the condition that 

such person permanently resides in the territory of the 

Slovak Republic. 

PART IV 

Miscellilneous Provisions 

ArticleS 

Administrative Measures 

The Competent Authorities of the two Contracting States shall: 

(a) conclude an administrative arrangement and take all 

necessary administrative measures for the implementation 

of this Agreement; 

(b) communicate to each other infonnation concerning the 

measures taken for the application of thill Agreement; and 

(c) communicate to each other, as soon as possible, 

information concerning all changes in their respective laws 

which may affect the application ofthis Agreement. 

ANNOTATIONS AND COMMENTS 

possible to qUalifY fur Slovak Republic benefits with 

one year of coverage). Like the similar six quarters o

requited for totaIizatiOIl by the United States under Artic

provision removes the considerable administrative 

processing claims fur very sma\l benefits based on minim

of coverage. The Slovak Republic agency will credit U.Scoverage totaling less than six quarters. 

The Slovak Republic provides a special class of non-c

benefits paid from general tax revenues to persons whos

began when they were minor children and who, as a resu

prior work history. Article 7.7 stipulates that the Slova

agency will pay such sociill assistance benefits under this 

only to pennanent residents of the Slovak Republic. 

Article 8 outlines various <junes of the Competent Autho

the Pamgraph(a) authorizes aad rtq

Competent Authorities to conclude an Administrative A

and take all necessary administrative measures to imp

Agreement. Paragraph (b) requires them to notity eac

steps they take unill\terally to implement the 

Paragraph (c) obligates the Competent Authorities to n

other of any changes in their sociill security laws that ma

application of the Agreement. 

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PRINCIPAL AGREEMENT 

Article 9 

Mutual Assistance 

-20-

The Competent Authorities and the agencies of the Contracting States, 

within the scope of their respective authorities, shall assist each other in 

implementing this Agreement. This assistance shall be free of charge, 

subject to exceptions to be agreed upon in an administrative arrangement. 

1. 

Artic!elO 

Confidentiality of Exchanged Personal Data 

Unless otherwise required by the national statotes of a 

Contracting State, personal data transmitted in accordance with 

this Agreement to· one Contracting State by the other 

Contracting State shall be used for purposes of administering this 

Agreement and the laws in Article 2 of this Agreement. The rectliV'ing Coh1tiU:ling Slate'S!latiiinal Miit1.i1eS fot the prbtecti'Oll "Of 

privacy and confidentiality of personal data and the provisions of 

this Agreement shall govern such use. 

ANNOTATIONS AND COMMENTS 

Article 9 authorizes the two countries to furnish enon-reimbursable assistance in administering the Agreem

assistance may include taking benefit applications and the 

and exchange, including the electronic exchange, of in

relevant to claims filed and benefits paid under the AAlthough Article 9 establishes a general principle th

administrative assistance will be free of charge, the anthorizes the two sides to agree to exceptions, such as the 

for medical examinations in Article 7.3 

Administrative Arrangement. 

Both the United States and the Slovak Republic recogniz

importance, of ensuring the integrity of personal data, as 

person's rights pertaining thereto. Accordingly, both cou

statutes and regu1ations that govern disclosure and pro

safeguards for maintaining the confidentiality of personal 

of the-It respective goveit!i:iienfS. rutile Uil

these statutes include the Freedom of Information Act, t

Act, section 6103 of the Interilal Revenue Code, and 

provisions of the Act and other related statutes. 

Slovak Republic, the applicable laws include Act No. 42

amended) and EU Directive 95/46/EC. Article 10.1 pro

both countries will protect personal data furnished 

Agreement in accordance with the applicable provisio

privacy and confidentiality laws of the country that repersonal data. 

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2. 

3. 

4. 

5. 

pmNCIPAL AGREEMENT 

The Competent Authorities of the Contracting States shall infoM 

each other about all amendments to their national statutes 

regarding the protection of privacy and confidentiality of personal 

data that affect the transmission of personal data. 

·21· 

Any subject may request, and the Competent Authority or agency 

requesting or transmitting personal data mU$t disclose to that 

subject upon such request, the content, receiving agency and 

duration of use of the subject's personal data and the purpose and 

legal grounds for which such data were used or requested. 

The agencies shall take all reusol1l!ble steps to ensure that 

transmitted personal data are accurate and limited to data required 

to fulfill the receiving agency's request In aCcordance with their 

respective national statutes •. the agencies shall correct or delete any 

inaccurate transmitted personal data and any data not required to 

fulfill the receiving agency's request, and immediately notifY the 

other Contracting State's agency of such correction. This. shall not 

limit a subject's right to request such correction directly from the 

agencies. 

Both the transmitting and the receiving agencies sball effectively 

protect personal data against uuaotborized or illegal access, 

alteration or disclosure. 

ANNOTATIONS AND COMMENTS 

Article 10.2 provides that if either country modifies 

ststutes that regulate the privacy or confidentiality of Pe

transmitted between the cOWltries, the Competent Auth

Contracting State that modified its statute must 

Competent Authority of the other qontractipg State. 

Article 10.3 protects a person's right to request 

information about any of his or ber personal data reques

transmitted to either country under the Agreement. Artic

provides that when a person .requests such information a

her personal data from a country, that country must 

requested information to the person. 

Article 10.4 provides that both countries will take reasona

ensure the accuracy of personal data transmitted betwe

countries and willliruit the transmissioit of personal data 

infoxmation necessary to satisfY the other country

However, if one country later discovers that it tran

received Inaccurate personal data or personal data not 

satisfY a country's request, the c01mtry that dis

discrepancy will correct or delete the personal data in q

immediately notifY the agency of the other country. Th

will perform such correction or deletion in accordance 

respective statutes &Qveming.alteration and destruction o

Article 10.4 also recogniZes the right of a person to ask ei

directly to correct or delete any of his or her own person

he or she discovers to be inaccurate or not required 

Contracting State's request. 

Both the United States and the Slovak Republic agree to 

integrity, privacy, and confidentiality of personal data 

respective laws when receiving or transmitting such dat

Agreement. 

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-22-

PRINCIPAL AGREEMENT 

Article 11 

Confidentiality 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 for purposes of 

administering this Agreement and the laws in Article 2 of this Agreement. 

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. 

2. 

3. 

Article 12 

Fee Waiver and Documents 

1. Where the laws of a Contracting State provide that any document 

which is submitted to the CompeteIit Authority or an agency of 

that Contracting State shall be wholly or partly, from 

fees or charges, including consullir and administrative fees, the exemption shall also apply to corresponding documents which are 

submitted to the Competent Authority or an agency of the other 

Contracting State in the application of this Agreement. 

Docmnents and certificates which lire presented for purposes of 

this Agreement shall be exempted from requirements for 

authentication by diplomatic or consular authorities. 

Copies of documents which are certified as true and exact copies 

ANNOTATIONS AND COMMENTS 

Article 11 provides protections for employers' c

information. It provides to any business-related in

exchanged under this Agreement similar protections 

provided for personal data under the Agreement and u

country's national statutes. 

Article 12.1 states that if the laws of one country exempt 

submitted in connection with a social security claim fro

charges, that exemption will also apply if a country s

documents to the other country by or on behalf of a c

beneficiary. 

Some countries require that a diplomatic, consular, or ot

representative in the other country certify the auth

documents submitted to their social security authorities 

behalf of persons in another country. Both the United Sta

Slovak Republic are parties to the Hague Convention Abo

Requirement for Legalisation for Foreign Public D

Article 12.2 reaffinns that neither country will req

authentication of documents submitted under the Agreeme

If the agency of one country certifies that a copy of a d

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1. 

2. 

1. 

-23-

PRINCIP{ll. AGREEMENT 

by an agency of one Contracting State shall be accepted as true and 

exact copies by an agency of the other Contracting Stale, without 

further certification. The agency ofeach Contracting State shall be 

the flnal judge of the probative value of the evidence submitted to 

it from whatever source. 

Article 13 

Correspondence and Language 

The Competent Authorities and agencies of the Contracting States 

may correspond directly with each other and with any person, 

wherever the person may reside. whenever it is necessary for the 

administration of this Agreement. 

An application or document may not be rejected by a 

Competent Authority or agency of a Contracting State solely 

because it is in the language of the other Contracting State. 

Article 14 

Applications 

A written application for benefits filed with the agency of one 

Contracting State shall be considered an application for benefits 

under the laws of the other Contracting Stale, and shall protect the 

rights of claimants under the laws of the other Contracting State if 

the applicant: 

ANNOTATIONS AND COMMENTS 

furnishes to the agency of thQ other country is a we and e

of an original document, the other country will accertification. Nevertheless, each country will remain the fof the probative value of any documents submitted to 

purpose of coverage records and benefit claims administra

the Agreement. 

Article 13.1 authorizes direct correspondence betw

Competent Authorities and agencies of the two cou

between these bodies and any person with whom they m

communicate. 

The Competent Authorities and agencies of each countr

reject an application or document because it is in the langu

other country. SSA already accepts applications and 

written in any langu/lge. 

Article 14.1 provides for situations in which an applicatio

benefits from one country will also be an application fo

ftom the other country. 

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2. 

3. 

1. 

PRINCIPAL AGREEMENT 

(a) requests at the time of filing that his or her application be 

considered an ai?plication under the laws of the other 

Contracting State, or 

·24. 

(b) if he or she does not make such a requllSt, provides 

infonnation at the time of filiog indicl,lting that the person 

on whose record benefits are claimed has completed 

periods of coverage under the laws of the other 

Contracting State. 

An applicant for benefits under the laws of II Contracting State 

may request that his or her application not be considered an 

application for benefits under the laws of the other 

Contraeting State. 

The provisions of Part TIl shall apply only to benr;fits for which an 

application is filed on or after the date this Agreement enters into 

force. 

Appeals and Time Limits 

A written appeal of a qetennination made by an agency of one 

Contracting State may be validly filed with an agency of either 

Contracting State. The appeal shall be decided according to the 

ANNOTATIONS AND COMMENTS 

Under subparagraph (a), II written application submitt

agency of one country that expresses intent to file fur ben

other country wilt protect the claimant's rigl¢ to benefits 

laws of the other country as if the applicant presented 

country, provided the applicant expresses an intent to file f

in the country when filing the application. 

An applicant who files an application with the agency of omay not always know about his or her benefit rights in 

country. Subparagraph (b) provides that even if it states n

to file for benefits in the other country, an application 

protect an applicant's rights under the other country's l

applicant indicates at the time of filiog that the worker ha

in the other country. 

Article 14.2 allows an applicant filing for a benefit under 

one country to restrict the scope of his or her application 

from that country only. 

Article 14.3 reqmres a person claiming benefits 

Agreement file an application on or after the date the 

enters into force. 

. Both the United States and the Slovak Republic ha

procedures for appealing the determinations of their agenc

Article 15.1. a claimant may file a written appeal ofa deci

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2. 

PRINCIPAL AGREEMENT 

procedure and laws of the Contracting State whose decision is being appealed. 

-25-

Any claim, notice or written appeal which, under the laws of one 

Contracting State, must have been filed within a prescribed period 

with an agency of that Contracting Stste, butwhich is instead filed 

within the same period with an agency of the other 

Contracting State, sball be considered to have been filed on time. 

Artic)e 16 

Transmittal of Claims, Notices and Appea)s 

In any case to which a provision of Article 14 or 15 of this Agreement 

applies, the agency 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 agency of the other Contracting State. 

t. 

2. 

A!1i.!iliill 

Currency 

Payments \lnder this Agreement may be made in the currency of 

the Contmctilllt State makilllt the payments. 

In case provisions designed to restrict the exchange or exportation 

of currencies are introduced by either Contracting State, the 

Contracting States shall immediately take measures necessary to 

ensure the transfer of sums owed by either Contracting State under 

this Agreement. 

Article 18 

ANNOTATIONS AND COMMENTS 

agency of one country with the agency of either couappropriate agency of the country whose decision an inappealing win consider the appeal under its own laws and 

Article 15.2 provides that when the laws of one country 

submission of a claim, notice, or written appeal within 

limit, the agency of that country will consider it filed on 

claimant files it with the agency of the other country 

prescribed time limit. 

The agency with which an applicant files a claim. notice

appeal under Article 14 or 15 of the Agreement shall 

immediately to the agency of the other country. The sen

will indicate the date on which it received the document. 

The agencies may pay benefits under this Agn:ement in 

of either CAuntry. SSA pays benefits in U.S. dQllars. T

pay Slovak Republic benefits abroad in Euros. 

Should either country restrict the. exchange of its cur

Contracting States will take steps to assure the payment 

due under the Agreement. 

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-26-

PRINCIPAL AGREEMENT 

Resolution 

Any disagreement regarding the interpretation or application of this 

Agreement shall be resolved by consultation between the 

COIllpetent Authorities. 

Article 19 

Supplementary Agreements 

This Agreement may be amended in the future by supplementary 

agreements which, fIom their entry into force, shall be considered an 

integral part of this Agreement. 

I. 

2. 

PART V 

Transitional and Final Provisions 

Article 20 

TmIlsitional Provisions 

This Agreement shall not establish any claim to payment of a 

benefit for any period before the date of entry into force of this 

Agreement 

In determining the right to benefits under this Agreement, 

consideration shall be given to periods of coverage under the laws 

(If either Contracting State and other events which occurred before 

the entry into force of this Agreement. 

Article 18 requires the Competent Anthorities to attemp

any dispute between them regarding the Agreeme

consultation or negotiation. 

Article 19 provides that future supplementary agree

amend the Agreement. After a supplementary agreeme

effective, it will become an integral part of the Agreemen

The agencies will pay benefits based on the Agreemen

tl)an the effective date of the Agreement. 

In determining benefit eligibility and amounts under the 

Article 20.2 provides that the agencies will consider 

coverage earned before the Agreement enters into f

agencies will also consider events relevant to the deter

benefit rights, such as marriage, death, disability or atta

certain age, which happened prior to the Agreement's ef

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3. 

4. 

5. 

1. 

-27-

PRINCIPAL AGREEMENT 

In applying paragraph 2 or 4 of Article 5, in the caS,e of persons 

who were sent by their employer or who tnlnsferred their 

self-employment activity 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 the entry into force of this Agreement. 

Determinations concerning entitlement to benefits which were 

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. 

ArtiIl!ill 

Entry into Force 

This Agreement is subject to approval according to the applicable 

procedures or internal legislative regulations of each 

Contracting State. 

However, the United States will not consider pe

Slovak Republic coverage credited prior to 1937, the earlie

which U.S. law petmits crediting periodS' of coveragArticle 6.2). Additionally, the United States will n

lump-sum death benefit under the Agreement if the person 

record a claimant files for benefits died prior to the Ag

entry into force. (See Article 6.5). 

Article 20.3 provides that the agencies will measure t

period to which paragraphs 2 and 4 of Article 5 refer beg

earlier than the date the Agreement enters into force. 

persons to whom Article 5.2 or Article 5.4 applies w

working in the other country before the Agreement's effe

the prior pedod will not count for purposes of the S-year lim

A decision to award or deny a claim either agency rende

the effective date of the Agreement will not prevent a pe

filing a new application for other benefits that may b

because of the Agreement. 

Article 20.5 guarantees that the entry into force of this A

will not result in a reduction in benefits already payable a

the Agreement hewmes effective. 

Each country will follow its own constitutional and 

procedures for approving the Agreement, The Agreemen

enter into force until both countries meet all the legal req

for its entry .into force. 

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2. 

3. 

1. 

2. 

3. 

-28-

PRINCIPAL AGREEMENT 

This Agreement shall enter into force on the first day of the third 

calendar month following the month in which the Contracting Stales inform each other by a written notification that 

all necessary statutory end constitutional requirements fur the entry 

into force of this Agreement have been fulfilled. 

Nothing in this Agreement shall supersede the notes concerning. 

the payment of social security benefits exchenged between the 

United States and Czechoslovak Governments on JWle 20 end 

July 12, 1968. 

Article 22 

Duration and Termination 

This Agreement shall remain in furce indefinitely. 

This Agreement may be terminated by either Contracting State 

giving written nbtice of its termination to the other 

Contracting State. In the event that the Agreement is terminated, it 

shall remain in force until the expiration of one calendar year 

following the year in which a Contracting State receives written 

notice of its termination from the other Contracting State. 

If this Agreement is terminated, rights regarding entitlement to or 

payment of benefits acquired under it shall be retained. The 

ANNOTATIONS AND COMMENTS 

Once each country completes its internal approval proce

governments will exchenge written notifications to that e

Agreement will enter into force on the first day of the thi

month after the month in which both governments have re

other government's written notification. The governments of the United States 

Czechoslovak Socialist Republic entered into an understa

an exchenge of diplomatic notas onlune 20 and July 12, 

understanding provides fur the reciprocal export of bene

country's citizens. This understanding, which is still in f

two constituent successor states of the former Czechosl

Czech Republic and the Slovak Republic, guarantees that 

both countries can receive benefits from the other country 

of statutory limitations on the export of benefits. A

reaffirms the principle embodied in the understanding. 

This Agreement will remain effective without any l

duration, unless one of the countries terminates it p

Article :22.2. 

Either country can terminate the Agreement by giving wr

of termination to the other. If either country takes 

terminate this Agreement. it will remain in effect until th

of one calendar year after the year in which one of th

receives written notice of termination from the other. 

If either country terminates the Agreement, a person 

benefit rights acquired befure termination. Special ar

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PRINCIPAL AGREEMENT 

Contracting States shall make arrangements dealing with rights in 

the process of being acquired. 

-29-

IN WI1NESS WHEREOF, the undersigned, being duly authorized 

thereto, h4ve signed this Agreement. 

DONE at Bratislava on December 10, 2012 in duplicate in the English and 

Slovak languages, the two texts being equally authentic. 

For the United States of America: For the Slovak Republic: 

Theodore Sedgwick Jan Richter 

would dictate the extent to which each country would 

benefit rights in the process of being acquired at th

termination-for example, periods of coverage that ha

re$Ulted in fully insured status. . 

The U.S. Ambassador to the Slovak Republic, Theodore 

and the Slovak Minister of Labour. Social Affaris and F

Richter, signed the Agreement on December 10,2012 in B

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ADMINISTRA TNE ARRANGEMENT 

ADMINISTRATIVE ARRANGEMENT 

FOR THE IMPLEMENTATION OF THE AGREEMENT 

ON SOCIAL SECURITY 

BETWEEN THE UNITED STATES OF AMERlCA 

AND THE SLOVAK REPUBLIC 

The Competent Authority nfthe United States of America and 

the Competent Authority of the Slovak Republic, 

In conformity with Article 8(a) of the Agreement between the 

United States of America and the Slovak Republic on Social Security of 

[datel , hereinafter referred to as the "Agreement," have 

agreed as follows: 

CHAPTER! 

General Provisions 

Article 1 

Where terms which appear in the. Agreement are used in this 

Administrative Arrangement, they shall have the same meaning as they 

have in the Agreement. 

l. 

Article 2 

The agencies defined in paragraph l(e) of Article I of the 

Agreement shall be: 

(al for the United States, the Social Security Administration; 

and 

(b) for the Slovak Republic, the Social Insurance Agency. 

ANNOTA nONS AND COMMENTS 

Article 1 provides that tenns have the same mea

Administrative Arrangement as they do in the Agreeme

Article 2.1 designates the agencies in each country re

implementing and administering the coverage 

provisions of the Agreement. The United Stales d

Social Security Administration .s its agency, 

Slovak Republic designates the Social Insurance A

counterpart agency, 

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I. 

2. 

1. 

ADMINISTRATIVE ARRANGEMENT 

The agencies defined in paragraph ICe) of Article 1 of the 

Agreement sholl be: ' 

(a) for the United States, the 80cilll Security Administration; 

and 

(b) forilic Slum Republic, the Social InsumnceAgency. 

The agencies sholl agree upon the joint procedures, IllAlthods and 

fmms necessary for the implementfllion of the AgreeIllAlDt and this 

Adtninistmtive Arrangement 

CHAPTERU 

Provisions on Coverage 

·2· 

Where the laws of one Comrllctlng Stare lite appllciWle in 

accordance .. lith any of the provisions of Article 5 of the 

Agreement, the IIgellcy of that Coottaeting State. upOn'request of 

the employer and employee, or self-employed person. shall issue a 

certificate stating th£rt the employer, employee or self-employed 

person is subject to those laws and indicating the duration for 

which the certificl!!c shall be valid. This emilie"'", SJ'lall be proof 

th£rt the =ployee or self-employed person is cltempt from the laws 

on compulsory coverage of the other Contrncting State. 

ANNOTATIONS AND COMMENTS 

Article 2.1 designates'the agencies lu each country resp

implClllAlntibg and administering the coverage an

provisions of the Agreement. The United States desi

Social Security Administration 8l! its agency, 

Slovak Republic designates the Social lhsumnce Age

counterpart agency. 

Article 2.2 aUlhorlzes and the ageooies of bo1h c

agree upon those procedures, methods and fOImS they w

the implementation of the Agreemen

Administrative ArmIlgement. 

Under Article ::1.1 • the ilgency of the COUIItry whose soc

covcmge laws will contiJ\\lC to apply to a person in accor

the rules in Part II of the Agreemant will issue a certifi

effect when atl employer and employee or a self-emplo

requests one. Employers and selfccmployed persons sho

certificates before work begins in the other country, 

possible. The certificate will serve lIS proof of the person from the coverage laws of the oilier country whe

to the agency of the other country. 

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ADMlNlS'lRATl.VBARRANGEMENT 

2. The ccrtlfi.cate :refmed to in paragraph 1 of this Article shall be 

isaued: 

(a) itt. the United States, by the Sooial Security Administxation; 

IIDd 

(b) in the Slovak Ril.{ll1bHc. by the Social Insumncc AgcIlC)'. 

3. Exceptions acCOlding to pamgraph 7 of Article S of the Agreement 

will be gmnted: 

(a) in the United States. by the Sooial Security Administration; 

and 

(b) in the Slovak Republic, by the MiniaIry of Labour, Social 

A.ffiIirs and Family of the Slovak Republic. 

4. The agency of a Con1mcting State whioh isSues a certificate 

referred to in paragraph 1 of this Article shall furnish a copy of the 

CCJtfficato or agreed upon information :from the certificate to the 

aseney of the other Contrflotini State as needed by the agency of 

·3· 

ANNOTATIONSANJ) COMMENTS 

The Social Secudt)' AdmiDisttation (United States) 

Social Insurance Agency (Slovak Republic) will issue 

certificates. 

Article 3.3 lists those bodies that may srant eltocptio

coverase rules deaon'bed. in Article S 01 tho Apfement. T

Social.lnsUl'll\ll:c operates under the auspice

Ministry of Labour, Social Affairs and Family 

Slovak Republic. 

Article 3.4 provides that the agency issuing a coverage 

will furnish a copy of the certifioate or information 

eerlificato to the agency in the other COWltry when needed. 

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ADMDiISTRATJ.VJ:ARRANCI:MENT 

CHAPTBR.m 

Provisions on Benefils 

1. Applications for benefits under the Agreement GIl be submitted 

on forms to be agreed upon by the agencies of the two 

Contracting States. 

2. Tlm of the Conlrlleti.ng State with Which an application fur 

benefits is t1tst tiled In accotdance with ArtI.ele 14 of the 

Agreement sha1I provide1he agency of the other Contnu:ting Slate 

with such evidence and other information in its possession as may 

be required to eompleto /If:tion on the claim. 

3. The agency of a ContraCtina State which receives an application 

that was fullt filed with an agency of the oihtlr COlltraoling State 

sba.ll without delay provide the agency of the other 

CcllttmctIng State with such evidence and otlI« available 

infomIation in its poaession as may he required fOr it to complete 

action on tho claim. 

-4. 

Al'4NOTATIONSAND COMMli'NTS 

The U.S. and SlovaltRepubllo will agree 

applillltion fonns that individuals who wish to file fo

based on the Agreement wID usc. 

AItldes 4.2 and ".3 outline ilie procedurea both IlOU

full.ow for the exchange of evidence end infonnation th

process claims filed under the Agnlement. 

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ADMlNISTRATlVE ARRANGEMENT 

4. The agency of the Contnu:tlng State with which an applieation fur 

benefits hils been filed sIuIll verify tho infannation pertaining to tho 

applicant and the applicant's dependents and smvivors. The typos 

of infonlllltion to be verified shall be agreed upon by the agencies 

ofboth ComrIJdiDg states. 

s. The aaencles of the Con1ractiDg SlateS sIuIll pay btnoftts UDder 

the Agreement directly to the benofieiary or his or her designee. 

CHAPTBRIV 

1. In with measures to be agreed upon pursuant to 

JlIIJ88raph 2 of Article 2 of 1Iiis Administrative AmIiIgement, the 

agency of 0110 Co!ll.t'aolin& Slate shall, upon tequest of the agenoy of the other Collll'acting State, iUmish available Information 

relafuls to the claim of any specified Individual for the purpose of 

administering the Agreement. 

.sANNOlA,1lONSANDCOI'rf.MENTS 

Artlele 4.4 deals w.Itb the verlfioatio.ll of olalms infilrma

U.S. and Slovak Rt:publio laws require verification 

infonlllllioD about -individuals claiming benefits (e.g

family relat!onshlp to the worker) before either COUIltry c

the daim. Atlide 4.4 provides 1bat when 1I person filea 

benefits WIder the Apement in one eountry. the age

CO\IIItty will verify tile relevant information and inform 

of tile other country of ita findings. The agencies will 

the specific types of infilrmatlon tequiringverifieatiOll. 

1bis provlslon elIjleditcs the claims process by avoidin

verifiC/ltion of the same Iof'ormatiou. An agency may 

additional evidenco to support finding of the other lIg

The Slovak Republic requested the inclllBion of this 

Article 4.5 provides 1hat both countries will 0Dly pay be

the to either the benefioiary or II legally 

designee of the beneficiary. 

Attiole S.1 provides 1hat the agenoy of one eountry 

.request, ii:mrlsh clsims-related Infunnation to the age

other eoll1llry in accmdaoce with agreed upon proeed

will be agreed upon by the agencies a

eonsistent with tho governiDg statutes of both coUldrieIl. 

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A.DMJNISTRATlVEARRANGBMENT 

2. To IlIc!lltate the implementatiQII of the Agreement and this 

Administrative Armngoment. the ageneles _y agree on measures 

for the provision and trllJlBlDissiQII of thI: electronic of 

data. 

The agem;ies of the two Con1lacIin& States sball exchange statistics 

llIID.ually 00 the pay!IIeI11s made to bencficIarles under the Agreement for 

the wander y_ ending QII December 31. These sIliIislics sball include the number of beneficiaries and the total amount of bem:filll under this 

sorted into types ofbenefits. 

I. Where admlnistnrtive esslstance is reqilested II!ldet Arliele 9 of the Asrecmcmt expenses OCher than regular pelliOlDlel and opetaIing 

IX)SI5 of the agency providiDg tho __ co shall be reimblU8ed, 

except as may be agroed to by the Competent Authorities or agencies of the Contradilli states. 

2. Upon request, the ageney of either· Contracting State sball furnish 

without (.lost to the lIIIency of the other CQotmcting Slate filly 

medical infbrmation and documentation in ita possession re1lOV11llt 

to the disability of the claimant or beneficiary. 

-6-

ANNOl'ATIONSAND COMMENTS 

Undln' ArtIcle S.2, the ageneles of both 1»\1DIrles ma

implement electronic data oxchanges to facilitate admln

the Agreement and this Admlnistrative Ammgeme

exchanges lI11lst comply with the laws of each coUDlxy go

proteatioII of privacy and confidc:Dt!Idlty of penona1 data

ArtIclo 6 provides for an exchange of statlstIes conCCl

peymen1s made by both eountries muler the Ageem

information will ini:1udc the tote1 number of benefic

under the Agreement and total payments to these benefto

In accordenae with ArtIcle 9 of the Apemout, the agen

two CO\IIltr!ee will provide each other with administndiv

required to implement the Agroement. Under Artic

requesting agency will pay expc:oses the other agencrospondlng to requests for administraIive asaISW\Co thai 

ontsicle illl OWl!. the two countries 

different ammgmnent Thislncludcs hiring iliterpreterB. 

specIal field inve.stig$tions, or IIIlIIII8ing medical1lK4IIJIna

ngetIOJes will not rcimbunic espenses for tcguIar per

operatinJ costs. 

When the aguocy in Om! country requosts medical inform

the agency in the other eountrY, the other agency will 

requesting agency with filly pertinent medical records 

possession ihlO of cbargo. 

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A.DMJNJS'I'RATM ARRANGEMENT 

3. Where, the agency of a Conttacting State requires that Ii person in 

the torrlto.ry of the other Contracting State wbo is nlCOiving or 

applying for benefits llI1der the Agreement submit 10 a medieal elllllllination, such examination. if requested by that agency, shaD 

be !Il'.I'Il¥d by the ageucy of the olIwr ContmctIng State in 

accordance with the rules of the agency making the arrangements 

and at the expoose oflbe &goner which xeqnesls. the examination. 

4. The ageaey of one Co.ntractiag State shaD reimburse amounts 

owed under paragraph 1 or 3 of this ArtIcle upon presentation of a 

statement of expenses by the aaency of the other Col1ttaCling State. 

Thlf! Administrative AmuigIlnumt shall enter hUo force on the date of 

entry into force of the Asteemont and shaD have the same period of 

validity. 

DONE at Bratislava on December 10. 2012, in duplic:ale in the English 

and Slovak lan&uagelI, the two texts being equally authentic. 

For the Competem Authorityof 

the United States of Ame:rIc:a: 

Theodore Sedgwick 

For the Competent Authority of the 

Slovak RCIJlUblic: 

J6n. Richter 

-1-

ANNOTATIONS AND COMMENTS 

ArIiclIl '1.3 provides that where a modIealllXlllllination i

to establish eligibility fur or continuing entitlement to 

benefits 1I1at are payable under the Agreement, and the 

beneficiary is in the other country. the agency oCthe oth

upon request, will arraaac fOr the coomUDatlon at the axp

agency 

In order to n:ceive reimbtm!llment for the cost of adm

assistance. the agency thet provides the assistam:e I)lllst 

IeqUeBtlng agency with Ii detalled SlateJl1llllt of expenses. 

The Administrative A:trangement will enter into f= o

date as the Agmment ml will remain in effect for the s

as the Apenlent. 

'I'hI! U.S. Ambassador to the Slovak Republlo, Theodore 

and the Slovak Mil:Uater of Labour, Social AfliIrl& a

J6n. Richter. signed the AdmInIstrative Armnge

Deoembc:!r 1(1, '2012. in Bralislllva. 
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REPORT TO CONGRESS 

TO ACCOMPANY TIlE SOCIAL SECURITY AGREEMENT 

BETWEEN 

THE UNITED STATES OF AMERICA AND THE SLOVAK REPUBLIC 

L INTRODUCTION 

The social security agreement between the United States and the Slovak Republic is 

intended to provide limited coordination of the social insurance systems of the two 

colUltries for old-age, survivors, disability, and other benefits. The agreement is similar 

in content and objective to social security agreements already in force between the 

United Slates and 24 other countries, including most European Union colUltries, 

Australia, Canada, Chile, Japan, Norway, South Korea. and Switzerland. Section 233 of 

the Social Security Act provides the authority to negotiate U.S. social security 

agreements. 

Like earlier U.S. agreements, the U.S.-Slovak agreement has two main purposes. First, it 

would eliminate. dual coverage and taxation of the same work, 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 countries on the same earnings. The agreement includes rules that 

assign a worker's social security coverage and tax liability to just one COlUltry. Second, 

the agreement helps fill gaps in social security benefit protection for workers who divide 

their careers between the two countries. Under the agreement, it would be possible for 

workers and their family members who would not otherwise qualify for benefits to 

qualify for partial U.S. or Slovak benefits based on combined work credits from both 

cotmtries. 

The U.S.-Slovak agreement consists of two separate instnunents: (l) a principal 

agreement setting forth the basic rules for coordinating the two countries' systems; and 

(2) an administrative m;rangement establishing policies and procedures to implement the 

principal agreement. These two documents, which Ambassador Sedgwick and a Slovak 

counterpart signed on December 10, 2012, will now transmit to Congress in accordance 

with section 233(e) of the Social Security Act. 

Accompanying this report are paragraph-by-paragraph explanations of the provisions of 

the principal agreement (Annex A) and related administrative arrangement (Annex B). 

Also included is a report required by section 233(eXl) of the Social Security Act on the 

effect of the agreement on the. estimated income and expenditures of the U.S. Social 

Security programs and the estimated number of individuals who the agreement will affect 

(Annex C). 
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II. STATUIORYREOUIREMENTS 

Section 233(c)(1) of the Social Security Act requires that international agreements 

concluded pursuant to that section provide for the elimination of dual coverage of the 

same work under the social security systems of the United States and the other country 

party to the agreement, and for combining credits earned by a worker under the two 

systems for purposes of determining benefit entitlements and payment amounts. In 

addition, the law requires that when a peISOn is entitled to U.S. Social Security benefits 

on the basis of such combined credits. the basis for the amount of the U.S. benefit 

payable must be the proportion of the workets periods of coverage completed under 

title II of the Sacilll Security Act. The U.S.-Slovak agreement includes these required 

provisions. 

m. COVERAGE PROVISIONS 

2 

In conformity with-section 233(cXI)(B) of the Social Security Act, Part II of the principal 

agreement sets forth rules designed to eliminate dual coverage and taxation of the same 

work under the U.S. and Slovak systems. 

A. Rules Govetning Employees 

The rules that apply to employed persons would generally eliminate dual social 

security coverage under the laws of the United States and the Slovak Republic by 

maintaining an employee's coverage under the laws of the country where the 

employee performs the work and exempting the employee from compulsory 

coverage under the laws of the other country. 

Special rules would apply, however, for employees whose employers in one 

country transfer them to work in the other country for a temporary period. In this 

situation, an employee who had coverage under the system of one country before 

the transfer would continue to have coverage under that country's laws and would 

be exempt from coverage in the host country. Thus, a person working for a U.S. 

employer that temporarily transfers him or her to the Slovak Republic would only 

have covemge under and pay contributions to the U.S. Social Security program. 

and the employer and employee would be exempt from Slovak social seCurity and 

health insunmce contribution requirements. 

Other rules set forth in the agreement would apply tQ persons employed by the 

governments of the two countries and to persons employed in international air 

transportation. 
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3 

B. Rules Governing Self-EniploYed Persons 

Part n also contains rules applicable to persons whose earnings from 

self-employment would be subject to compulsory coverage and contributions 

under the laws of both countries absent the agreement Under these rules, a 

self-employed person may opt to transfer his or her own work activity to the other 

country for a temporary period, retaining coverage in the country from which he or 

she transfem:d his or her woik. 

IV. BENEFIT PROVISIONS 

Part ill of the principal agreement establishes the basic rules for determining entitlement 

to, and the amount ot: U.S. and Slovak benefits fur persons who have worked in both 

countries. These benefit provisions are included pursuant to sections 233(c)(1)(A) and 

(C) of the Social Security Act 

A. Provisions Applicable to the United States 

1. Totalirotion of Periods of Coverage 

Under the rules that apply to the United States. if a worker has credit for at 

least six. quarters of coverage under the U.S. Social Security program but not 

enough credits for the worker or his or her survivors or dependents to qualitY 

for benefits, the worker's coverage credits from both the United States and the 

Slovak Republic could be totalized (i.e., combined) to permit the applicant to 

qua1ifY for a partial U.S. benefit. Since the Slovak social security system 

measures periods of coverage in terms of days, the United States would credit 

one quarter of coverage for every 90 days of coverage certified by the Slovak 

social security system in a calendar year. The United States would not. 

however, credit months of coverage under Slovak law if they fall within a 

calendar quarter in which a worker has already earned a U.S. quarter of 

coverage under the U.S. system. 
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4 

2. Computation oru.s. Totalization Benefit Amounts 

The amount of a U.S. benefit for which a person may qualifY based on 

totalized periods of coverage depends on both the duration of the wotker's 

coverage under the U.S. Social Security system and the level ofms or her 

eamings. A detailed description of the totalization benefit computation 

procedure is contained in the regulations of the Social Security Administration 

(20 CFR 404.1918). Generally, the first step in the ptocedure is to compute a 

theoretical primary insurance amount (PIA). The ~ial Security 

Administration then detennines the pro rata PIA from the theoretical PIA to 

reflect the proportion of the -worker's coverage lifetime completed under the 

U.S. program. The definition of a coverage lifetime is the number of years 

used to calculate a worker's average monthly wage or average indexed 

monthly earnings under the regular U.S. national computation methods. 

B. Provisions Applicable to the Slovak Republic 

1. Slovak Benefits 

The Slovak Republic maintains a three tiered system of social insurance. The 

first tier of the Slovak: social insnrance aystem is a traditional pay-as-you-go 

(P A YO) defined benefit system. and is entirely State-administered. The 

Slovak. Republic calculates first tier benefit amounts on the basis of a pension 

points system. The Slovak agency aggregates a wotker's lifetime indexed 

contributions and divides the sum by the average earnings 'or all workers over 

the same period. The Slovak: agency then multiplies this result by the total 

periods of coverage that a worker bas under the Slovak system and an 

actuarial coefficient that ensures a constant replacement rate. The second tier 

is a system of individual fully-funded accounts that is State-regulated but 

administered by the private sector. Second tier benefit amounts depend on the 

investment yield of' a worker's account. The third tier consists of a voluntary 

tax deductible savings scheme for employers and their employees. While the 

coverage rules apply to both the first and second tier~ the benefit provisions of 

the agreement apply to first tier benefits only. 

2. TotaIi:ption of Periods of Coverage 

The totalization provisions of the agreement apply to the Slovak social 

security laws that govern the payment of retirement, survivors, disability, and 

other benefits. Under the agreement, if a worker had at least 12 months of 

Slovak coverage, (or less. provided the shorter period of coverage yielded 

Slovak benefit eligibility without consideration ofU .S. coverage), the Slovak: 

Republic would compute a theoretical benefit as if the worker's U.S. periods 

of coverage had been completed under Slovak: law. Next, the Slovak: agency 

would prorate ~ theoretical amount by multiplying it by the ratio of the 

periods of coverage credited under Slovak law to the total periods credited in 

both countries. 
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C. Benefit Portability 

Section 233(0)(2) of the Social Security Act permits agreements to contain 

provisions precluding the application of the alien nonpayment provisions of the 

Social Security Act (section 202(t» for persons residing in a foreign country with 

which the United States has an agreement in force. The U.S.-Slovak agreement 

would provide an exemption :f:i:om these nonpayment provisions for insured 

persons and their dependents or survivors, regardless of their citizenship, if they 

reside in the Slovak Republic. 

V. OIHERPROVISIONS 

Section 233(c)(4) of the Social Security A-ct authorizes agreements to contain other 

provisionS not inconsistent with title n of the Act which are appropriate to carry out the 

purposes of the agreements. In accordance with this provision, the principal agreement 

and administrative ammgement contain a number of articles designed to permit the 

United States and the Slovak Republic to render free or reimbursable assisUmce to the 

other country in implementing the 8greement Such assistance could include, for 

example, an electronic data exchange arrangement. 

5 
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MEMORANDUM 

Date: February 13, 2013 

To: Stephen C. Goss, Chief Actuary 

From: Chris Chaplain, Actuary 

Nettie Barrick, Actuary 

SOCIAL SECURITY 

Refer To: TCC 

Subject! Estimated Bffecls of a Potential Totalization Agreement between the Slovak Republic and the 

United States-INFORMATION 

This memorandum and the attached tables present estimates of the effects of implementing a 

potential totalization agreement with the Slovak Republic, assuming an effective date of January 

1,2014. 

Table 1 shows the estimated net additional program costs to the Social Security systems of the 

United States (OASDI) and the Slovak Republic under the potential agreement for fiscal years 

2014 through 2021, the end of the shott-range projection period under the 2012 Trustees Report. 

In each case, these net additional program costs arise uader the respective systems due to: (1) 

benefits payable because of the agreement; and (2) tax contnDutions eliminated under the 

agreement for temporary foreign workers. 

1;able 2 shows estimates of the numbers (35 ofmid-year)'ofpersons who would receive 

"totalized" benefits !Tom eaoh system, and the number of Slovakian citizens affected by 

removing the 5-year U.S. residency requirement for survivor or dependent benefits. The table 

also shows estimates of the numbers of temporary foreign workers in the respective countries 

exempt from taxation by the local Social Security system, under a totalization agreement U.S. 

workers working for a U.S. finn in the Slovak Republic fora period expected to last 5 years or 

less would pay Social Security taxes only to theUnited States. Slovakian workers working for a 

Slovakian firm in the U.S. for a period expected to last 5 years or less would pay Social Security 

taxes only to the Slovakian system. For these temporary workers, the agreement eliminates taxes 

paid to the Social Security system of the country in which they temporarily work. 

We base estimates shown in the tables on the intermediate set of assumptions of the 2012 OASDI 

Trustees Report The exchange r&te used in these estimates is 0.76768 euros per U.S. dolll!!' (1 

euro '" $1 .30263), the exchange rate as of December 13,2012. The average exchange rate over 

the past 5 years is about 0.7300 euros per U.s. dollar, with a low of 0.6269 euros per U.S. dollar 

and a high of 0.8372 euros per U.S. dollar. 
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2 

These estimates are subject to much uncertainty. Many of the estimates are based on limited data 

for the Slovak Republic and we assume that certain reiationships, which apply on average for 

other countries where totalization agreements already exist, will apply for the Slovak Republic as 

well. For example. to estimate the numbers of totalized beneficiaries under the U.S. Social 

Security system resulting from un agreement with the Slovak Republic, we use two data SOurt:eS 

for 18 of the existing agreement countries in a regression analysisl

. One data source contains 

immigration data from Census Bureau files, which we use to estimate immigration and 

emigration for this analysis. The second data source contains numbers of nonimmigrant visas 

issued by U.S. foreign service posts in each country to persons traveling to the U.S., over as-year 

period, roughly 30 years ago when 2014-2021 retirees potentially receiving benefits under the 

totalization agreement were in their prime working years. This analysis yields an estimate of 

about 380 totalized beneficiaries under the U.S. Social Security system during the 5111 year of the 

potential agreement with the Slovak Republic. For 8 of these existing-agrecment countries. the 

estimated number of beneficiaries from the regression is higher than the actual number for the 

historical period. by a median value of about 28 percent of the historical value. For 1 (} of these 

existing-agreement countries. the estimated number of beneficiaries from the regression is lower 

than the actual historical number, by a median value of about 27 percent of the historical number. 

Therefore, the actual number of OASDI beneficiaries at the end of the S1ll year of implementation 

would be: (1) about 290, if the median relationship for countries with fewer beneficiaries than 

suggested by the regression analysis applies to the Slovak Republic; and (2) about 520, if the 

median relationship for CQuntries with more beneficiaries than suggested by the regression 

applies to the Slovak Republic. 

Totalization agreements provide OASDI benefits mainly to three groups. The ill'St group is 

Slovakian non-immigrants (temporaty visa holders) who work in the U.S. for less than 10 years. 

These workers would bave coverage under the U.S. Social Security system (unless they work for 

a Slovakian firm in the U.S. for S)'eaIS or less after a totalization agreement becomes effective). 

and may be eligible for U.S. totalized benefIts when their work in the Slovak. Republic is also 

~onsidered. The secon4 group is legal immigrants (generally permanent) from the Slovak 

Republic to the u.s. who work in the U.S. for less than 10 years, frequently because they 

immigrate later in their working. careers. The third group is emigrants from the U.S. to the 

Slovak Republic (Slovakian-born or U.S. born) who worked in the U.S. for less than 10 years, 

frequently because they emigrate relatively early in their careers. 

A totalization agreement between the Slovak Republic and the United States precludes OASDI 

disability benefits for Slovakian workers employed by a Slovakian employer in the U.S. for 5 

years or less who become disabled while working in the U.S. or shortly thereafter. However, 

temporary workers from the Sfovak Republic are unlikely to work long enough to qualifY for 

U.S. disability benefits (generally at least 5 years), and are expected to be relatively healthy at the 

time they come to the U;S. to work. Therefore, we believe that reductions in OASDI disability 

1 We excluded Ii tofaJlzation agreement countries wm the ana\ysis-Denmark, Clech Republic,. and Poland beame 1he 

8&reements have not been in efIi:ct long eDough for us to have fin tiIIl years of data available, South Korea I>ecausc work beflm: 

1986 in Soulb KoR:a would not be counfl:d as co~ in de1:rmining eligibility for 1I>bilized berJerltS, Luxembour:g bealWJe of 

lac.k of_ and Caneda bccause it is 8 border COlIIIlly willi emignmtll1ld immiJll1llll paIfemS!hat would likely \'lIlY widely from 

!hose oflhe Slovak Republie. 
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benefits due to eliminating double taxation as Ii result of Ii totalization agreement between the 

Slovak Republic and the United States would be minimal. 

5-Year Residency Requirement 

In addition to estimates'ofthe number ofpersons who would receive totalized OASDI benefits, 

we also estimate the number of alien dependents and survivors who do not meet the S-year U.S. 

residency requirement for receipt of Social Security benefits. These individuals would receive 

OASDI benefits under a totalization agreement because this requirement does not apply to 

totalization countries. 

Effects Related to Other U.S. Social Insurance Programs 

3 

The principal financial effects of a totalization agreement apply to the Social Security programs 

of the countries involved. Totalization agreements do not cover Medicare benefits. Thus, the 

U.S. cannot use credits for wolk in the Slovak Republic to establish entitlement under the 

Medicare Hospital Insurance program. However, underthe potential agreement between the 

Slovak Republic and the United States, the U.S. Medicare program would be affected because of 

the removal of double taxation for Slovakian woIkers who temporarily wolk in the U.S. for Ii 

Slovakian finn. We dono(, however, expect reduced Medicare outlays because attainment of 

Medicare entitlement by these workers is highly unlikely. Medicare (HI) eligibility is restricted 

to individuals who either: (1) are at least age 65 and eligible for U.S. Social Security benefits; or 

(2) were entitled to U.~. Social Security disability benefits (as a disabled worker, disabled 

widow(er). or disabled adult child} for at least 24 months. Furthermore, the U.S. generally 

restricts Medicare covemge to services provided in the U.S. Because it is unlikely that temporary 

workers from the Slovak Republic (a) work enough to qualify for Medicare and (b) Jive in the 

U.S. when they might avail themselves of Medicare services, we believe a totalization agreement 

between the Slovak Republic and the United States would reduce HI benefits very minimally. 

By law, totalization agreements do not affect payroll taxes paid for work injury (workers' 

compensation) and unemployment programs administered by the United States. Therefore, the 

U.S. would still require Slovakian temporary workers employed by Slovakian firms in the U.S., 

and their employers. to pay any applicable workers' compensation and unemployment payroll 

taxes. These programs generally operate at the state, and not the federal, level. 

Effects Related to Other Slovakian Social Insurance Programs 

Under a totalization agreement, the Slovakian system would no longer require U.S. temporary 

workers in the Slovak Republic (and their U.S.-based employers) to pay into Slovakia's national 

hea1tb insurance system. The reduction in contributions increases from an estimated $0.5 milliQll 

in fISCal year(FY) 2014 to $1.0 million inFY 2021. These estimates assume the current 

contribution rate of 14% (10% employer. 4% employee) to the Slovakian national health 

insurance system contin~s through this period. By eliminating contributions to the Slovakian 
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national health insuraru:e system for these temporary U.S. workers in the Slovak Republic, a 

totalization agreement would result in these workers no longer being eligible for services under 

that system. These foregone health insurance services represent a savings to the Slovakian 

system. 

4 

The value offoregone national health insurance services for U.S. temporary workers in the 

Slovak Republic is extremely difficult to estimate, but is expected to be small. It is very likely 

that U.S. temporary WOIke.rs in the Slovak Republic are relatively bealthy and do not need much 

in the way of health services. Due to the assumed healthim;ss OTthe U.S. temporary worker 

population and the propensity to use health providers outside the Slovakian system, we estimate, 

very roughly, that the value of benefits currently provided to U.S. workers by the Slovakian 

national health insurance system is about one-tenth of the amoont of their contributions to that 

system. Table 1 shows the estimates ofnet costs to the Slovakian health insurance system, 

which range from $0.5 million in FY 2014 to $0.9 million in FY 2021-about 1.7 times the 

estimated net cost to the U.s. Medicare system for those years. 

Under a totalization agreement, the Slovakian system would lose work injury payroU tax 

contributions from the employers of affected woIkers. and would lose sicknesslmatemity 

contributions from the affected woIkers and their employers. Under a totalization agreement. 

U.S. employen; and their U.S. employees working temporarily in the Slovak Republic would no 

longer contribute to these programs, and the Slovakian government would no longer pay benefits 

to these workers. We believe that most U.S. employers provide sickness/maternity benefits to 

their employees, such that these workers would rarely receive such benefits from the Slovakian 

system. Most U.S. employers also continue to pay the salaries of people incapacitated due to 

injury for relatively short periods. such that the Slovak Republic rarely pays work injury btmefits 

to these workers. Therefore, we estimate that the value of Slovakian sickness/maternity and work 

i1/iury benefits no longer paid to U.S. temporary workers affected by a potential totalization 

agreement would be very small. 

In addition, the SIQvakian system would lose unemployment payroll tax contributions from 

workers and their employers affected under a totalization agreement. The Slovakian 

unemployment program pays benefits for a period of up to 6 months. However, we believe that 

very few temporary U.S. worlcers (working for U.S. employers) in the Slovak Republic lose their 

jobs, and the few that do lose their jobs most likely move back to the United States and do not 

look for other work in the Slovak Republic. Under a potential totalization agreement, U.S. 

temporary workers in the Slovak Republic would no longer be eligible for Slovakian 

unemployment benefits. Because payment of unemployment benefits to temporary U.S. workers 

in the Slovak Republic is unlikely, we expect the value of unempWyment benefits no longer paid 

by the Slovak Republic's system, under a totalization agreement, to be very small. 

Long-Range Financial Effects 

Implementing the potential totalization agreement between the U.S. arid the Slovak Republic 

would decrease the long-range (75-year) actuarial balance of the OASDl program by an amoont 

that is estimated to be negligible (that is. by less than 0.005 percent of taxable payroll). 
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5 

Table 3 displays the components of the estimated net cost to the OASDI Trust Funds for years 

2012 through 2086 on a "Cpr-indexed to 2012" basis, i.e., indexing the amounts back to the year 

2012 by assumed chanlJ'$ in the consumer price index (CPl). In addition. the table displays total 

estimated OASDI net costs on an annual and cumulative present-value basis, i.e., indexing the 

amounts back to January 1,2012 by projected interest rates earned by the OASDI Trust Funds on 

special-issue U.S. Government bonds. 

Chris Chaplain 

~/~ Nettie Barrick 

Attachments: 3 
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Table t.-Estimated pro~ COSIs for the U.S. and Slovak Republic Social Security (and other) systems under a 

potential to1alization agreement between the two countries, fiscal years 2014-2021 

(In millions) 

F"tscal2 

Total,FY 

Financial B~ for the U.S. Social Security 

a!l.!.! mt E§. 2.!!!I ;m!l 2019 2!I2n mL ~ 

system: 

Incn:ase in OASDI benefit payments ...•••.••...•..••. lJ JJ SI $1 $1 $1 $1 $1 $7 

Reduction in OASDI tax cOlltribUliollS ................ 1 :l ~ Z Z l 1 ~ .l.1 

Net OASDI ccst. ......... _ .................................... 2 2 3 3 3 ~ 4 21 

Net cost IQ the Medicare systetn ......................... lJ JJ JJ JJ JJ 4 

Net costs 10 the Social Security system of the 

Slovak Rqlublic: 

Incn:ose ic benefit payments ... _ ........................ JJ I I 2 3 3 4 4 17 

Reduction in OASDI tax con1ributions .............. 1 :l 2. z Z Z l 2- l§. 

Total ........................... _ .................... _ ............ 1 2 "3 4 S S 6 f> 33 

Net oost1o the Slovakian natiauallleaItb 

insuram:e system 'lJ ...................................... _ lJ 6 

Net cost for other Slovakian P¥OlIlax 

contributions l! ............................. _............... 11 l/ 11 l/ JJ JI l! 3 

JI Less than $500,000. 

'YInc\udes,1leaItb insurance payroll tax co01ri'bUlions thst thet01alizafionagreemem withthe Slovak Republic would e\iminate. 

lImcludes sicknes&lmatemity, work injwy, and umlI'll]lloyment payroll tax con1ribUlions thatthe IQtalizaiion agreement with 

the Slovak Republic would elimlnate. 

Notes; 

I. The a,g.reement is,asswn~ 10 beco)lltl effective on Jan\l8ly I, 2014. 

2. The estimates are based on the Intennediate assumptions Of tho 2012 Trustees Report. 

3. T01aIs may not equal the SIIIIlS of the components clue IQ rournIing. 

4. Estimates are in U.S.40llars. The assumed exclwlge mte is 0.76168 euros per U.S. dollar. 

Social Security Administration 

Office of the Chief Actuary 

February 13,2013 
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7 

Table l.-Estimated number of persons affecttd by a potentlal1Otalization agreement between lite United Slates and 

the Slovak Republic, fiscal years 2014-2021 

!!!! thousandsl 

Fi<caIe: 

Z!lli zw. ~ W 

Number of persons """,;ving a t.o!alized OASDI benefit 

based in parton employmem iIl1ke Slovak Republic (in 

cwmlt·pa;y _ at mid-year) ..•.••••• __ ..................... _ .•• JJ 0.1 0.2 0.3 

Nomber of persons reoelving a t.o!alized Slovakian benefit 

based in part OD employment in 1ke United Stales (in 

cummI-pay_atl1lid-year)_ ........................................ .1 .3 .1- 1.0 

Number ofpersons noeiving l>o\b alolalized OASDI 

benefit and a 1<>taIizcd benefit fi'om 1ke Slovak Republic 

(in cwmlt-pa)' _ at mid-year) ... _ ..... _ ................... _ JJ JJ JJ .1 

Number of ... idcnl5.ofthe Slovak Republic, or Slovakian 

citizens living ouIside!he U_S., who would IIDW be able to 

receive OASDI dependent or smvivor benefils bec1wse 

!he S-ycar residency mtuireoneat would no J<mger apply 

(in """""t-pay _ at mid-year) ....................................... .1 .1 .1 .1 

Number oW.8. employees in 1ke Slovak Republic who, 

along wi1h thelt employers, W!"Ild no longer make lax 

contributions during1ke year to the Social Security 

systemof1ke SlovakRepubfic ............... _ .......................... .2 .2 .2 .3 

Number ofSiovakinn employees in tho U.s. who, along 

wi1h !holt empIoy<n, would no longer make lax 

cnntributions during 1ke e: to !he OASDIH tnISt funds ... .2 .2 .2 .2 

JJ Fewerthan SO. 

Notes: 

I. The agreement is assumed to beoomo effective. nnlanuary 1,2014. 

2. Tho es1iDtates am based on the intennedialo assumptions of the 20121'n1stees Report. 

Social Security Adminimtio. 

Office ofllle Chief Aetuary 

FcbtuaIY 13.2013. 

rut 

0.3 

1.4 

.1 

.I 

.3 

.2 

2019 ml! WI 

0.4 0.4 O.S 

1.6 1.$ 1.9 

.1 .1 .1 

.1 .I .1 

.3 .3 .3 

.2 .2 :z 
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Table ~rcjecIed No! OASDI COSt oflmplllmon!lng Pn>pasod T_ AlJMment _ U,s. 0lId SlOVak I!epubliC 

__ t;IIangeJn ACldIIIonoI _..... CurmIIIflve 

OASOI OASDI OASDI OASlll AddiIionIII NotIlenelilJ ,,-,T_ No!Cost Nat Coat OASDI 

y..,. FotYNrJj F«y.... ForY_V ForV_21 IlllCOIItl! 

(MillCnJof CPI·rmr_ 2Il12$) 

o 0 0 o 0 0 o ~ 2 Q ~ 2 1 ~ 2 1 ~ 2 1 ~ 3 

143 

1 ~ 3 

143 

1 ~ 3 , -2 3 

1 ~ 3 

I -2 a 

143 

1 -2 3 

1-23 

2 -2 4 2 ~ 4 2 ~ 4 

2 -2 ~ 

Z -2 4 

2 -2 4 2 -2 4 2 -2 4 2. ·ll 4 

2 -2 4 

2 ·2 ~ 

2 ~ 4 2 ·2 4 

2 ~ 4 2 -3 4 2 ~ If 

2 -3 S 2 ~ 5 2 ~ 5 2 -3 5 2 -3 $ 2 ~ 5 2 -3 5 2 -3 5 2 -3 5 

245 

2 -3 5 

2 -3 S 2 -3 6 2 ~ 6 3 oS Ii 3 -3 6 3 .3 6 

3 -3 {I 

3 -3 1\ 3 -3 & 3 -4 6 

3 -4 8 

3 -4 6 3 -4 7 3 -4 7 3 -4 7 3 -4 7 3 -4 7 3 -4 7 3 -4 7 3 -4 1 3 -4 7 

3 -4 S 3 -4 8 3 -4 \I <4 -4 6 4 ~ 8 4 ~ 8 4 ~ II 4 ~ 11 

4 .0 9 4 ~ 9 

-on_AImlmPIJanSOftlte2012T ...... RIIpa1. l/Addl ____ toOAsllltDm_on_ 

Z/Addl_net ___ minu.d1q.rn~_, 

o 

(Ujlio" ... I'$._va ..... '" 1-1-12) o 0 o 0 

2 2 2 3 

2 If 

2 7 

2 10 2 12 

2 14 

2 17 2 19 

2 22 2 24 2 27 2 29 

2 31 2 34 2 3& 2 29 2 41 

2 43 2 45 2 48 2 so 2 1!2 

2 54 2 se 2 59 2 61 2 63 2 65 2 61 2 69 2 71 2 73 2 7ll 

2 76 2 78 2. 80 2 82 2 84 2 86 2 87 2 89 2 91 2 liZ 

2 94 2 96 

2 '" 2 99 2 101 2 102 2 104 2 105 

1 107 I 108 1 110 

I 111 1 112 1 114 1 115 1 117 

1 118 1 119 1 121 1 122 

1 123 I 124 

1 126 I 127 1 126 1 129 

1 131 

1 132 1 133 

SOCIlIISeculllY~ 

0IIiCe ti \lie CI1IoI PdiuIIty 

""lInlaIyls,201a