U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

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39–011 2013

113th Congress, 1st Session – – – – – – – – – – – – – House Document 113–75 

AGREEMENT ON SOCIAL SECURITY BETWEEN THE 

UNITED STATES AND THE SWISS CONFEDERATION 

MESSAGE 

FROM

THE PRESIDENT OF THE UNITED STATES 

TRANSMITTING

AN AGREEMENT ON SOCIAL SECURITY BETWEEN THE UNITED 

STATES OF AMERICA AND THE SWISS CONFEDERATION, PURSUANT TO 42 U.S.C. 433(e)(1) 

DECEMBER 9, 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)), I transmit herewith an Agreement on 

Social Security between the United States of America and the 

Swiss Confederation, signed at Bern on December 3, 2012, (the 

‘‘U.S.-Swiss Agreement’’). The Agreement consists of two instruments: a principal agreement and an administrative arrangement, 

and upon entry into force, will replace: the Agreement between the 

United States of America and the Swiss Confederation on Social 

Security with final protocol, signed July 18, 1979; the Administrative Agreement between the United States of America and the 

Swiss Confederation for the Implementation of the Agreement on 

Social Security of July 18, 1979, signed December 20, 1979; and the 

Supplementary Agreement between the two Contracting States, 

signed June 1, 1988. 

The U.S.-Swiss Agreement is similar in objective to the social security agreements already in force with most of the European 

Union member states, 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 principal updates encompassed in the Agreement include amendments 

to rules for entitlement to Swiss disability pensions paid to ensure 

equality of treatments between U.S. and Swiss nationals, updates 

to personal information confidentiality provisions, and modifications necessary to take into account changes in U.S. and Swiss 

laws since 1988. 

The U.S.-Swiss 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 U.S.-Swiss Agreement, along with a paragraph-byparagraph explanation of the provisions of the principal agreement 

and administrative arrangement. Annexed to this report is the report required by section 233(e)(1) of the Social Security Act on the 

number of individuals affected by the Agreement and the effect of 

the Agreement on the estimated income and expenditures of the 

U.S. Social Security program. The Department of State and the Social Security Administration have recommended the U.S.-Swiss 

Agreement and related documents to me. 


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I commend the U.S.-Swiss Agreement on Social Security and related documents. 

BARACK OBAMA. 

THE WHITE HOUSE, December 9, 2013. 


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AGREEMENT ON SOCIAL SECURITY 

BETWEEN 

THE SWISS CONFEDERA nON 

AND 

THE UNITED STATES OF AMERICA 

The Government o/the Swiss Confederation and 

the Government of the United States of America, 

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

Social Security, have agreed as follows: 
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PART! 

Definitions and Law§ 

ARTICLE 1 

Definitions 

1. For the purposes of this Agreement: 

"Territory" means, as regards the United States, the States thereof, the 

District of Columbia, the Commonwealth of Puerto Rico, the 

Commonwealth ofthe Northern Mariana Islands, the United States 

Virgin Islands, Guam and American Samoa, and as regards Switzerland, 

the territory of the Swiss Confederation; 

h. "National" means, as regards the United States, a national of the United 

States as defined in Section 101, Immigration and Nationality Act, as 

amended, and as regards Switzerland, a person of Swiss nationality; 

c. "Laws" means the laws and regulations specified in Article 2 of this 

Agreement; 

d. "Competent Authority" means, as regards the United States, the 

Commissioner of Social Security, and as regards Switzerland, the 

Federal Social Insurance Office; 

e. "Agency" means, as regards the United States, the Social Security 

Administration, and as regards Switzerland, a compensation fund of the 

Old-Age and Survivors Insurance and the other bodies responsible for 

the administration of Disability Insurance; 

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f. "Period of coverage" means a period of payment of contributions or a 

period of earnings from employment or self-employment, as defined or 

recognized as a pedod 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. "Benefits" means any benefit provided for in the laws specified in Article 

2 of this Agreement; 

h. "Family members" and "survivors" mean, in relation to Switzerland, 

family members and survivors, whose rights are derived from a national 

of a Contracting State, from a refugee or from a stateless person; 

i. "Stateless person" means a person defined as a stateless person in Article 

I of the Convention Relating to the Status of Stateless Persons dated 

September 28, 1954; 

j. "Refugee" means a person defined as a refugee in Article 1 of the 

Convention Relating to the Status of Refugees dated July 28, 1951, and 

the Protocol to that Convention dated January 31, 1967; and 

k. "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, 

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

applicable laws. 

ARTICLE 2 

Material Scope 

1. For the purposes ofthis Agreement, the applicable laws are: 

a. as regards Switzerland, 

the Federal law on old-age and survivors' insurance; 

the Federal law on disability insurance; and 

b. as regards the United States of America, the laws governing the Federal 

old-age, survivors, and disability insurance program: 

Title II of the Social Security Act and regulations pertaining 

thereto, except sections 226, 226A and 228 of that title, and 

regulations pertaining to those sections, 

Chapters 2 and 21 ofthe Internal Revenue Code of 1986 and 

regulations pertaining to those chapters. 

2. Laws within the meaning of paragraph 1 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 regulations 

promulgated for their specific implementation. 

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3. 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 legislation or regulations which extend the 

existing laws to other categories of beneficiaries or which involve a new branch 

of Social Security only if both Contracting States so agree. 

PART II 

General Provisions 

ARTICLE 3 

Personal Scope 

Unless otherwise provided, this Agreement shall apply to: 

a. nationals of either Contracting State, 

b. refugees who reside in either Contracting State, 

c. stateless persons who reside in either Contracting State, 

d. other persons, including family members and survivors, with respect to the 

rights they derive from persons in (a), (b) and (c) ofthis Article, and 

e. e. for the application of Articles 7, 8 paragraph 3, 9 to 12,20 to 26 and 29, 

to any person regardlcss of nationality. 
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ARTICLE 4 

Eql.l!lJlii-y of Treatment 

J. Unless otherwise provided in this Agreement, persons designated in Article 3 

(a), (b) or (c) who reside in the territory ofa Contracting State shall, in the 

application of the laws of that Contracting State, receive equal treatment with 

nationals ofthat Contracting State. 

2. Unless otherwise provided in this Agreement, family members and survivors of 

a national of a Contracting State who reside in the territory of a Contracting 

State shall, in the application ofthe laws of that Contracting State, receive equal 

treatment with family members and survivors of a national of that Contracting 

State. 

ARTICLES 

Portability of Benefits 

Unless otherwise provided in this Agreement, benefits payable under the laws of one of 

the Contracting States shall be paid to nationals of the other Contracting State as well as 

to their family members and survivors, who are resident in the territory of a third State, 

on the same tenns and to the same extent as to the nationals of the first Contracting 

State resident in the territory of this third State or to their family members and 

survivors. 

ARTICLE 6 

Application of National Laws 

This Agreement shall not prevent the application of provisions of the laws of either 

Contracting State concerning benefits that are more favorable to the persons listed in 

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Article 3. 

PARTUI 

Provisions Concerning Applicable Laws 

ARTICLE 7 

1. Unless otherwise provided in Part III of this Agreement, a person of any 

nationality who is employed in the territory of either Contracting State shall be 

subject, with respect to employment in that territory, to the laws on compulsory 

coverage of the Contracting State where the person is employed and, in 

determining the amount of contributions payable under the laws of that 

Contracting State, no account shall be taken of any income the person may 

receive from employment in the territory of the other Contracting State. 

2. Where a person of any nationality is in the service of an employer having a place 

of business in the territory of a Contracting State and is sent by that employer to 

the territory of the other Contracting State for a period not expected to exceed 5 

years, the person shall be subject to the laws on compulsory coverage of only the 

first Contracting State as ifhe or she were employed in its territory. 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 Switzerland, 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. 

J. Paragraph 2 of this Article shall apply where a person who has been sent by his 

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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 ofthat 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 of any nationality who is self-employed in the territory of one or both 

Contracting States and who is a resident of one Contracting State· shall be 

subject to the laws on compulsory coverage of only the Contracting State in 

whose territory the person resides. 

5. Where the same activity is considered to be self-employment under the laws of 

one Contracting State and employment under the laws of the other Contracting 

State, that activity shall be subject to the laws of only the first Contracting State 

if the person is a resident of that State, and to the laws of only the other 

Contracting State in any other case. 

ARTICLES 

Government Employment 

1. Part III of this Agreement shall not apply to the categories of persons listed in 

the provisions of the Vienna Convention on Diplomatic Relations of April 18, 

1961, and of the Vienna Convention on Consular Relations of April 24, 1963. 

2. Nationals ofthe United States employed by the Government ofthe United States 

in the territory of Switzerland who are not exempt from Swiss laws by virtue of 

the Conventions mentioned in paragraph (1), shall be subject to the laws on 

compulsory coverage of only the United States. For the purpose of this 

paragraph, employment by the United States Government includes employment 

by an instrumentality thereof. 
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3. An employee of any nationality of a public service in Switzerland who is posted 

to the territory of the United States shall be subject only to Swiss laws. 

ARTICLE 9 

Airline Employees 

Traveling employees of any nationality 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 State. 

ARTICLE 10 

SeafareI'll 

A person of any nationality employed as an officer or member of a crew on a vessel 

which flies the flag of one Contracting Statc and who would otherwise be covered under 

the laws of both Contracting States shall be subject to the laws of only the Contracting 

State whosc flag the vessel flies. The activity pursued on a vessel which flies the Swiss 

flag shall be deemed to be an activity pursued on the territory of Switzerland. A vessel 

which flies the flag of the United States is one defined as an American vessel under the 

laws ofthe United States. 

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ARTICLE 11 

Family Members 

1 . Where in application of Part III a person of any nationality remains subject to 

the laws of one Contracting State while working in the territory of the other 

Contracting State, the same applies to the spouse and the children, of any 

nationality, residing with that person in the territory of the second Contracting 

State, provided that they are not gainfully employed themselves in the territory 

of this Contracting State. 

2. Where in the application of paragraph 1 Swiss laws apply to the spouse and 

children, they are insured in the Swiss old-age, survivors' and disability 

insurance. 

ARTICLE 12 

Exceptions 

The Competent Authority of one Contracting State may grant an exception to the 

provisions of Part III of this Agreement or an extension of the period in Article 7(2) of 

this Agreement in the interest of particular persons or categories of persons, if the 

Competent Authority of the other Contracting State agrees, provided that the affected 

person or persons will be subject to the laws on compulsory coverage of one of the 

Contracting States. 

If) 
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PART IV 

Provi!;iolls on Benefits 

CHAPTER 1 

Application of Swiss Laws 

ARTICLE 13 

Exceptions to Equality of Treatment 

Article 4 shall not apply to Swiss laws: 

a. on the voluntary old-age, survivors' and disability insurance; 

b. on old-age, survivors', and disability insurance of Swiss nationals who are 

gainfully occupied abroad in the service of the Swiss Confederation or 

organizations in the meaning of subparagraph I (c) of Article la of the Federal 

law on old-age and survivors' insurance; and 

c. on the voluntary old-age, survivors' and disability insurance for Swiss nationals 

employed by organizations in the meaning of subparagraph 4(b) of Article la of 

the Federal law on old-age and survivors' insurance. 

ARTICLE 14 

Totalization for Swiss Benefits 

I. Where a person does not meet the requirements for entitlement to an ordinary 

pension from the Swiss disability insurance solely on the basis of the periods of 

coverage completed according to Swiss laws, the agency shall take into account, 

for the acquisition of the right to benefits, United States periods of coverage, as 
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long as these periods do not overlap with those completed according to the 

Swiss laws. 

2. Where the periods of coverage completed according to Swiss laws do not 

amOlmt to one year, paragraph 1 does not apply. 

3. The amOlmt of the benefits shall be determined solely on the basis of the periods 

of coverage completed according to Swiss laws. The calculation is carried out 

according to Swiss laws. 

ARTICLE 15 

Rehabilitation Measures 

1. United States nationals who, immediately prior to eligibility for rehabilitation 

measures have been liable to pay contributions to the Swiss old-age, survivors' 

and disability insurance, shall bc entitled to such measures as long as they are 

physically present in Switzerland. 

2. United States nationals, who are not gainfully employed and who, immediately 

prior to eligibility for rehabilitation measures have not been liable to pay 

contributions to the Swiss old-age, survivors' and disability insurance because of 

their age, but nevertheless have been insured under this insurance, shall be 

entitled to such measures as long a~ they are domiciled in Switzerland, if, 

immediately prior to eligibility for the measures, they have resided in 

Switzerland without interruption for at least one full year. Minor children shall, 

moreover, also be entitled to such measures if they are domiciled in Switzerland 

and if they have either been born disabled there or have resided there without 

intelTIlption since birth. 

3. United States nationals residing in Switzerland who leave Switzerland for a 

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period not exceeding three months shall not be deemed to have interrupted their 

residence in Switzerland within the meaning of paragraph 2. 

4. A child who is a United States national and who is born disabled in the United 

States to a mother who: 

a. is domiciled and insured in Switzerland; and 

b. was absent from Switzerland for not more than 2 months before the birth; 

shall be treated as a child born disabled in Switzerland. In the case of a 

congenitally handicapped child, Swiss disability insurance shall also be 

responsible for meeting expenses incurred abroad during the first three 

months after the birth to the same extent as it would have been required 

to meet these in Switzerland. 

5. Paragraph 4 shall apply mutatis mutandis to a child born disabled outside the 

territory of the Contracting States; in such case, the Swiss disability insurance 

shall be responsible for meeting expenses incurred in the third State only If the 

measures had to be awarded there on an emergency basis due to the state of 

health of the child. 

ARTICLE 16 

Extraordinary Pensions 

1. United States nationals shall, under the same conditions as Swiss nationals, be 

entitled to receive a Swiss extraordinary survivors' pension, disability pension or 

old-age pension which replaces a disability or survivors' pension if, immediately 

before the date from which they claim the pension, they have resided in 

Switzerland for a continuous period of not less than five years. 

2. For the purpose of paragraph 1: 

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a. no account shall be taken of any period during which the persons 

concerned were exempted from the Swiss old-age, survivors' and 

disability insurance; and 

b. a period of residence in Switzerland shall not be regarded as interrupted 

if the absence from Switzerland is not more than three months in any 

calendar year. The period of three months may be extended in 

exceptional cases. 

3. The refund of contributions paid under Swiss laws and lump sums in accordance 

with Article 17 shall not prevent the granting of extraordinary pensions in 

accordance with paragraph 1. However, in such cases, the lump sum paid out 

shall be deducted from the amount of pension to be paid out. 

ARTICLE 17 

Lump Sum Payments 

1. If a United States national or his or her survivor who does not reside in 

Switzerland is entitled to an ordinary partial pension under the Swiss old-age 

and survivors' insurance which is equal to not more than 10 percent of the 

corresponding ordinary full pension, that person shall be granted instead of the 

partial pension, a lump sum which corresponds to the capitalized value of the 

pension payable under Swiss law when the insured event occurs. If a U.S. 

national or his or her survivor, who received such a partial pension, permanently 

leaves Switzerland, that person shall also be granted a lump sum which 

corresponds to the capitalized value of that pension at the time of departure. 

2. If the ordinary partial pension is equivalent to more than 10 percent but not more 

than 20 percent of the corresponding ordinary full pension, a U.S. national or his 

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or her survivor who does not reside in Switzerland or who is permanently 

leaving Switzerland may opt between having the pension paid or a lump sum. 

This option shall be made during the course of the procedure to determine the 

pension if the entitled person is staying outside Switzerland when the insured 

event occurs, or when leaving the COlllltry, If the entitled person already received 

a pension in Switzerland. 

3. In the case of a marricd couple where both spouses have been insured under the 

Swiss insurance, the lump sum is paid only when both spouses are eligible to a 

pension. 

4. When the lump sum has been paid out by the Swiss agency no further claims can 

be asserted against that agency in respect of previous contributions paid or of 

corresponding periods of coverage. 

5. Paragraphs 1 to 4 shall apply mutatis mutandis to ordinary pensions ofthe Swiss 

disability insurance provided that: 

a. the person who has entitlement has attained the age of 55 years; and 

b. the Swiss insurance does not require any further verification of the 

fulfillment of the conditions concerning the disability of that person. 

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CHAPTER 2 

Application of United States Laws 

ARTICLE 18 

United §tatc§ Benefits 

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, periods of 

coverage completed under Swiss laws shall be taken into account to the extent 

they do not coincide with calendar quarters already credited as quarters of 

coverage under United States laws. 

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

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

months of coverage certified as creditable by the agency of Switzerland to the 

extent that the months do not coincide with calendar quarters already credited as 

quarters of coverage under United States laws. The total number of quarters of 

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

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

to the provisions of paragraph 1, 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 credited 

under United States laws to the duration of a coverage lifetime as 

determined in accordance with United States laws. 

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Benefits payable under United States laws shall be based on the pro rata primary 

insurance amount. 

4. Entitlement to a benefit from the United States which results from paragraph 1 

shall terminate with the acquisition of sufficient periods of coverage under 

United States laws to establish entitlement to a higher benefit without the need 

to invoke the provision of paragraph 1. 

5. Articles 4 and 5 of this Agreement shall be applied by the United States in a 

manner consistent with section 233(c)(4) of the United States Social Security 

Act. 

PART V 

Miscellaneous Provisions 

ARTICLE 19 

Administrative Arrangements 

The Competent Authorities of the two Contracting States shall: 

a. Make all necessary administrative arrangements for the implementation 

of this Agreement and designate liaison agencies; 

b. Define the procedures for reciprocal administrative assistance, including 

the allocation of expenses associated with obtaining medical, 

administrative, and other evidence required for the application of this 

Agreement; 

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c. Communicate to each other information conceming the measures taken 

for the application of this Agreement; and 

d. Communicate to each other, as soon as possible, infom1ation concerning 

all changes in their respective laws which may affect the application of 

this Agreement 

ARTICLE 20 

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. 

ARTICLE!1 

Confidentiality of Exchanged Information 

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

personal data transmitted in accordance with this Agreement to that 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 

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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 institution, 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. 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, 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 agency of 

such correction or deletion. This shall not limit a subject's right to request such 

correction or deletion directly from the agencies. 

5. Both the transmitting and the receiving agency shall effectively protect personal 

data against unauthorized or illegal access, alteration, or disclosure. 

6. 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. 

ARTICLE 22 

Documents 

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

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submitted to the Competent Authority or an agency of that Contracting State 

shall be exempted, wholJy 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. Copies of documents which are certified as true and exact copies by the agency 

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

ARTICLE 23 

Correspondence and Language 

1. 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. 

The correspondence may be in the writer's language. 

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

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

Contracting State. 

3. The notices of decisions of an agency or a tribunal which, under the laws ofa 

Contracting State, require personal delivery may be transmitted directly by 

registered letter to a person in the territory of the other Contracting State. 

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ARTICLE 24 

Applications 

1. A written application for benefits filed with an agency of one Contracting State 

shall protect the rights of the claimants under the laws of the other Contracting 

State if the applicant requests that it be considered an application under the laws 

of the other Contracting State. 

2. If an applicant has filed a written application for benefits with an agency of one 

Contracting State and has not explicitly requested that the application be 

restricted to benefits under the laws of that Contracting State, the application 

shall also protect the rights of the claimants tmder the laws of the other 

Contracting State if the applicant 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. 

3. An applicant may request that an application submitted to an agency of one 

Contracting State be effective on a different date in the other Contracting State 

within the limitations of and in conformity with the laws of the other 

Contracting State. 

ARTICLE 25 

Appeals and Time Limits 

1. A written appeal of a determination made by an agency of one Contracting State 

may be validly filed with an agency ofthe other Contracting State. The written 

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 must be tiled within a given period of 

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time with an agency of one Contracting State shall be considered to have been 

timely filed if the claim, notice or written appeal has been filed within such 

period with a corresponding agency of the other Contracting State. In such case, 

the agency with which the claim, notice or written appeal has been filed shall 

indicate the date of receipt of the document on this document and transmit it 

without delay to the agency of the other Contracting State. 

:i. With respect to Switzerland, appeals which must be filed within a given period 

of time with a tribunal in Switzerland shall be considered to have been timely 

filed if it is shown that the appeal has been filed within such period with the 

agency or a court in the United States. 

ARTICLE 26 

Currency 

The amount of any benefit due in accordance with the provisions of this Agreement may 

be paid in the currency ofthe Contracting State whose agency is responsible for such 

benefit. 

ARTICLE 27 

Resolution of Disagreements 

Any disagreement regarding the interpretation or application ofthis Agreement shall be 

resolved by consultation between the Competent Authorities. 

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ARTICLE 28 

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. Such 

agreements may be given retroactive effect if they so specify. 

PART VI 

Transitional and Final Provisions 

ARTICLE 29 

Transitional Provisions 

1 . This Agreement shall also apply to events which occurred prior to its entry into 

force that are relevant to rights under the laws in Article 2 of this Agreement. 

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

period before its entry into force, or to a lump-sum death benefit if the person 

died before its entry into force. 

3. Consideration shall be given to any period of coverage and any period of 

residence under the laws of either Contracting State occurring before the entry 

into force of this Agreement, in order to determinc the right to benefits under 

this Agrecment. 

4. This Agreement shall not apply to rights settled by a lump-sum payment or 

refund of contributions. 
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5. Detenninations made before the entry into force of this Agreement shall not 

affect rights arising under it. 

6. This Agreement shall not result in the reduction of benefit amounts because of 

its entry into force. 

7. Upon the entry into force of this Agreement, the Agreement between the United 

States of America and the Swiss Confederation on Social Security and the 

Protocol of July 18,1979, as well as the SupplementalY Agreement between the 

two Contracting States of June 1, 1988, shall be tenninated and replaced by this 

Agreement. 

8. Any benefit acquired by a person, or coverage detennination issued, in 

accordance with the provisions of the Agreement between the United States of 

America and the Swiss Confederation on Social Security of July 18, 1979, shall 

be maintained. 

9. Any claim to benefits made but not finally adjudicated at the date upon which 

this Agreement comes into force shall be adjudicated according to the provisions 

of the Agreement between the United States of America and the Swiss 

Confederation on Social Security of July 18, 1979, if this gives the claimant a 

more favorable result. 

ARTICLE 30 

Entry into Force, Duration and Termination 

1. This Agreement shall enter into force on the first day ofthe third month 

following the month in which each Government shall have received from the 

other Goverrunent written notification that it has complied with all statutory and 

constitutional requirements for the entry into force of this Agreement. 

24 
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2, This Agreement shall remain in force and effect until the expiration of one 

calendar year following the year in which written notice of its termination is 

given by one of the Contracting States to the other Contracting State, 

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

bene tits acquired under it shall be retained; the Contracting States shall make 

arrangements dealing with rights in the process of being acquired, 

TN WITNESS WHEREOF, the undersigned, being duly authorized thereto, have signed 

the present Agreement 

'F)aiJ 

DONE at :sWiidJ on b D fU.J).;",ta.u.- 2-0 I 2- in duplicate, in the 

English and French languages, both texts being equally authentic, 

FOR THE GOVERNMENT FOR THE GOVE E 

OF THE SWISS CONFEDERATION; 

25 
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ADMINISTRATIVE ARRANGEMENT 

FOR THE IMPLEMENTATION OF THE AGREEMENT 

BETWEEN THE SWISS CONFEDERATION AND 

THE UNITED STATES OF AMERICA 

ON SOCIAL SECURITY 

In confonnity with Article 19 (a) of the Agreement on Social Security concluded on 

. .3.;o..if.~<f?[ .. gg/,?: ....... between Switzerland and the United States of 

America, hereinafter referred to as "the Agreement", the following provisions have been 

agreed upon: 

Chapterl 

General Provisions 

Article 1 

Tenns used in this Administrative Arrangement shall have the same meaning as in the 

Agreement. 

Article 2 

1. Liaison agencies for the implementation of the Agreement shall be: 
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a. for the United States, the Social Security Administration; and 

b. for Switzerland, the Swiss Compensation Office and the Disability Insurance 

Office for insured people living abroad. 

2. The Swiss Competent Authority or, with its consent, the Swiss liaison agency, and 

the United States liaison agency shall agree uponjoint administrative measures and 

forms necessary for the implementation ofthe Agreement and this Administrative 

Arrangement. 

Chapter 2 

Provisions Concerning Coverage 

Article 3 

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

of the provisions of Part III of the Agreement, the agency of that Contracting 

State, upon request of the employer or self-employed person, shall issue a 

certificate stating that the 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 proofthat 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 1 shall be issued: 

in the United States: by the Social Security Administration; and 

in Switzerland: by the competent compensation fund of the Old-Age and 

Survivors Insurance. 

2 
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3. Requests for an extension of the period of detachment or an exception according 

to Article 12 of the Agreement shall be submitted to the Competent Authority of 

the Contracting State whose coverage is requested. 

4. The agency of a Contracting State which 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 liaison agency of the other Contracting 

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

Chapter 3 

Provisions Concerning Benefits 

Article 4 

In cases where Article 24 ofthe Agreement applies, the liaison agency ofthe 

Contracting State which has received an application for benefits under its laws shall 

inform the liaison agency of the other Contracting State of this fact without delay, 

using forms established for this purpose. It shall also transmit documents and such 

other available information as may be necessary for the agency of the other 

Contracting State to establish the right of the applicant to benefits according to the 

provisions of Part IV of the Agreement. In the case of an application for disability 

benefits it shall, in particular, transmit all relevant medical evidence in its 

possession concerning the disability of the applicant. 

2. The liaison agency of a Contracting State which receives an application filed with 

an agency ofthe other Contracting State shall without delay provide the liaison 

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

information as may be required to complete action on the claim. 

3 
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3. The agency of the Contracting State with which an application for benefits has been 

filed shall verify the accuracy of the infonnation pertaining to the applicant and the 

applicant's family members. The types of infonnation to be verified shall be agreed 

upon by the liaison agencies. 

Article 5 

In the application of Article 18 of the Agreement, the Swiss liaison agency shall notity 

the United States liaison agency of the months in which a person made contributions 

during any year in which periods of coverage were completed under Swiss laws. A 

record of the total number of months of contributions made in specific calendar years 

shall be provided where the actual months of coverage are not known. 

Chaptcr4 

Miscellaneous Provisions 

Article 6 

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

Administrative Agreement, the agency of one Contracting State shall, upon 

request of the agency of the other Contracting State, furnish available 

infonnation relating to the claim of any specified individual for the purpose of 

administering the Agreement or the laws specified in Article 2( 1) of the 

Agreement. 

2. For the purpose offacilitation of the implementation ofthe Agreement and this 

Administrative Arrangement, the liaison agencies may agree on measures for the 

4 
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provision and transmission of the electronic exchange of data. 

Article 7 

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

number of certificates issued under Article 3 of this Administrative Arrangement and on 

the payments made to beneficiaries under the Agreement for each calendar year in a 

form to be agreed upon. The data shall include the number of beneficiaries and the total 

amount of benefits, by type of benefit. 

Article 8 

I. Where administrative assistance is requested under Article 20 of the Agreement, 

expenses other than regular persounel and operating costs of the Competent 

Authorities and agencies providing the assistance shall be reimbursed, except as 

may be agreed to by the Competent Authorities or liaison agencies ofthe 

Contracting States. 

2. Where the agency of a Contracting State requires that a claimant or beneficiary 

submit to a medical examination, such examination, if requested by that agency, 

shall be arranged by the agency of the Contracting State in which the claimant or 

beneficiary resides, in accordance with the rules of the agency making the 

arrangements and at the expense of the agency which requests the examination. 

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

to the liaison agency of the other Contracting State any medical information and 

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

beneficiary. 

5 
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4. Amounts owed under paragraphs 1 and 2 shall be reimbursed upon presentation of 

a detailed statement of expenses. 

Article 9 

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. 

DONEat~~ on "3 ~~ ?-lJ12 ,induplicate 

in the English and French languages, the two texts being equally authentic. 

For the Competent Authority 

of Switzerland: 

6 

For the Competent Authority 

of the United States of America: 

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UNCLASSIFIED 

PRINCIPAL AGREEMENT 

Text in bold type indicates provisions of the new U.S.-Swiss Social 

Security agreement that differ significantly in wording or substance from 

the corresponding provisions of the original U.S.-Swiss Social Security 

agreement signed July 18, 1979, as amended June I, 1988. 

AGREEMENT BETWEEN 

THE UNITED STATES OF AMERICA 

AND THE SWISS CONFEDERATION 

ON SOCIAL SECURITY 

The Government of the United States of America and 

the Government of the Swiss Confederation, 

Being desirous of regnlating the relationship between their two 

countries in the field of Social Security, have agreed as follows: 

PART I 

Definitions and Laws 

ARTICLE I 

ANNOTATIONS AND COMMENTS 

United States and Swiss officials signed the first U.S.-Sw

Security agreement (TIAS 9830) on July 18, 1979, and it e

force on November 1,1980. A supplementary agreement (TIA

amending a number of provisions in the original agreement, w

on June I, 1988, and became effective October I, 1989. U.S. 

authorities have now negotiated a new agreement that re

original and supplementary agreements. The text of the new 

is on the left column of this document with explanatory comm

right. 

The primary purpose of the new agreement is to adapt to 

Swiss law that led to inequities in the treatment of U.S. 

nationals. Additionally, the language in parts of the original 

as amended was no longer accurate. 

UNCLASSIFIED 

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1. 

PRINCIPAL AGREEMENT 

Definitions 

UNCLASSIFIED 

-2-

ANNOTATIONS AND COMMENTS 

For the purposes of this Agreement: Article 1 defines key terms used in the Agreement. 

a. 

b. 

"territory" means, as regards the United States, the States 

thereof, the District of Columbia, the Commonwealth of 

Puerto Rico, the Commonwealth of the Northern 

Mariana Islands, the United States Virgin Islands, 

Guam and American Samoa, and as regards Switzerland, 

the territory of the Swiss Confederation; 

"national" means, as regards the United States, a national 

of the United States as defined in Section 101, 

Immigration and Nationality Act, as amended, and as 

regards Switzerland, a person of Swiss nationality; 

The definition of United States "territory" in Article 1.1 of t

U.s.-Swiss Social Security agreement is identical to the de

"United States" in Title II of the Social Security Act ("Act") 

210(i). That definition includes the SO states, the District of 

Puerto Rico, the U.S. Virgin Islands, Guam and American S

not the Northern Mariana Islands (NMI). However, the 

establishing the NMI Commonwealth in political union 

United States provides that the U.S. Social Security program 

the NMI as it applies in Guam. Because all U.S. Soci

agreements apply to Guam, the U.S. Social Security Adm

(SSA) began applying the agreements to the NMI as of Janua

when the U.S. Social Security program first extended there. 

of this ncw agreement makes clear that the definition of Un

"territory" includes the NMI. 

The definition of Swiss territory remains unchanged and 

23 cantons of Switzerland. 

Under section 101(a)(22) of the Immigration and Nationality 

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

United States, or (B) a person who, though not a citiz

United States, owes permanent allegiance to the United State

in category (B) include natives of American Samoa. 

A Swiss national means any person to whom Swiss lanationality, including, but not limited to, a person who carr

Swiss passport or other valid identity document designating th

a Swiss national. 

UNCLASSIFIED 

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c. 

d. 

e. 

PRINCIPAL AGREEMENT 

UNCLASSIFIED 

- 3-

"laws" means the laws and regulations specified in 

Article 2 of this Agreement; 

"Competent Authority" means, as regards the 

United States, the Commissioner of Social Security, and 

as regards Switzerland, the Federal Social Insurance 

Office; 

"Agency" means, as regards the United States, the Social 

Security Administration, and as regards Switzerland, a 

compensation fund of the Old-Age and Survivors 

Insurance and the other bodies responsible for the 

administration of Disability Insurance; 

ANNOTATIONS AND COMMENTS 

The. new agreement updates references to the Immigr

Nationality Act of 1952 in Article 1.1 of the original agr

removing "of 1952." 

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

laws and regulations of each country, e.g., pertaining t

survivors and disability insurance as set forth in Article 2. 

"Competent Authority," as used throughout this Agreement, r

government official or body in each country with ultimate res

for administering the social security program, including the pr

the Agreement. 

The phrase "the Commissioner of Social Security" updates th

to "the Secretary of Health, Education, and Welfare." 

"Agency," as used in the Agreement, refers to the administrat

each country responsible for taking and processing claims a

coverage determinations under each country's social security 

is the Agency for the United States. However, this Agreeme

affect the U.S. Internal Revenue Service's responsibility for d

social security tax liability in light of SSA coverage dete

under the Agreement. 

Administration of the Swiss old-age, survivors, and disability 

program is decentralized and entrusted to a number o

compensation funds located throughout Switzerland. 

responsible for collecting contributions, maintaining individu

and determining entitlement to and the amount of pensions. 

also numerous commissions and regional offices responsible 

disability determinations and administering the rehabilitatio

under Swiss disability insurance. Under the Agreement, ea

Swiss funds, commissions, and offices is included within 

UNCLASSIFIED 

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f. 

g. 

h. 

PRINCIPAL AGREEMENT 

UNCLASSIFIED 

-4-

"period of coverage" means a period of payment of 

contributions or a period of earnings from employment or 

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

coverage by the laws under which such period has been 

completed, or any similar period insofar as it is 

recognized by such laws as equivalent to a period of 

coverage; 

"benefit" means any benefit provided for in the laws 

specified in Article 2 of this Agreement; 

"family members" and "survivors" mean, in relation 

to Switzerland, family members and survivors, whose 

rights are derived from a national of a Contracting 

State, from a refugee or from a stateless person; 

ANNOTATIONS AND COMMENTS 

"Agency." However, for purposes of administrative liaison, 

of the Agreement requires and authorizes the Competent Au

name liaison agencies. Article 2 of the Administrative A

designates these as the U.S. Social Security Administratio

Switzerland, the Swiss Compensation Office and the 

Insurance Office for insurcd people living abroad. 

"Period of coverage" means any period that the social secur

either country credit for purposes of determining benefit 

including periods of payment of contributions and periods 

employment and self-employment. 

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

under the social security laws of either country. "Benefi

pensions payable under the social security laws of Switzerl

respect to the United States, the term also includes the lump

payment under section 202(i) of the Act, but excludes spe

payments provided for certain uninsured persons under sect

theAc!. 

The phrase "in Article 2 of this Agreement" adds precision and 

Article l.l(h) consolidates Articles 1.8 and 1.9 from th

Agreement into one unilateral paragraph defining family me

survivors for purposes of benefit payments with respect to S

U.S. laws do not provide generally applicable definitions of t

and do not limit benefit payments to family members and s

nationals, refugees, and stateless persons. The Agreement cre

rights for people in these categories who are not Swiss nation

the dependents or survivors of Swiss nationals; the definition

UNCLASSIFIED 

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i. 

j. 

k. 

PRINCIPAL AGREEMENT 

UNCLASSIFIED 

·5· 

"stateless person" means a person defined as a stateless 

person in Article 1 of the Convention Relating to the 

Status of Stateless Persons dated September 28,1954; 

"refugee" means a person defined as a refugee in Article 1 

of the Convention Relating to the Status of Refugees 

dated July 28, 1951, and the Protocol to that Convention 

dated January 31,1967; and 

"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, statelessness or refugee status; benefits, 

eligibility, or otber 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. 

ANNOTATIONS AND COMMENTS 

payment of dependent and survivor benefits to people who fa

of the various categories of family member or survivor s

Swiss laws. 

The Convention relating to the Status of Stateless Persons 

stateless person as "a person who is not considered as a natio

State under the operation of its law." 

The Convention relating to the Status of Refugees, in conjun

the 1967 Protocol thereto, defines as a refugee any person wh

to well·founded fear of being persecuted for reasons of rac

nationality, membership of a particular social group or politic

is outside the country of his nationality and is unable or, ov.1

fear, is unwilling to avail himself of the protection of that 

who, not having a nationality and being outside the country of 

habitual residence[ ... ], is unable or, owing to such fear, is u

return to it." 

"Personal data" refers to personally identifiable information. 

is no definition of "personal data" in the Act, this term incor

essential elements of the definition of "information" in th

Federal Regulations section applying to SSA at 20 CFR 401.2

UNCLASSIFIED 

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2. 

1. 

PRINCIPAL AGREEMENT 

UNCLASSIFIED 

- 6-

Any term not defined in this Article shall have the meaning 

assigned to it in the applicable laws. 

ARTICLE 2 

Material Scope 

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

a. 

b. 

as regards Switzerland, 

the Federal law on old-age and survivors' 

insurance; 

the Federal law on disability insurance; and 

as regards the United States of America, the laws 

governing the Federal old-age, survivors, and disability 

insurance program: 

Title II of the Social Security Act and regulations 

pertaining thereto, except sections 226, 226A and 

228 of that title, and regulations pertaining to 

those sections, 

ANNOTATIONS AND COMMENTS 

Each country will assign to any undefIned terms used in the 

the same meaning given under its social security laws. 

Article 2.1 specifIes the laws to which the Agreement applies. 

For Switzerland, it applies to all Federal laws dealing wi

survivors, and disability insurance. These include the Fede

Old-Age and Survivors' Insurance (LAVS) of December 20

Federal Law on General Provisions concerning Legislation 

Insurances of October 6, 2000, and the Federal Law on 

Insurance of June 19, 1959. 

The Agreement does not apply to other branches of the S

security program. However, a person must have coverage un

to have coverage under Swiss health insurance, acc

occupational disease insurance, and unemployment 

Therefore, workers who do not have coverage under LA VS 

provisions of Part III of this Agreement will also not contribu

Swiss programs. 

For the United States, the Agreement applies to title II of the 

Security Act and the corresponding tax laws (the Federal 

Contributions Act (FICA) and the Self-Employment Contrib

of 1954 (SECA)), as amended, and any regulations pertaini

laws. The Agreement does not apply to Medicare 

(sections 226 and 226A of the Act) or provisions for special p

uninsured individuals age 72 or over under section 228 o

Persons to whom the Agreement applies who qualify without 

of this Agreement for Medicare hospital insurance or age-72 

UNCLASSIFIED 

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2. 

3. 

PRINCIPAL AGREEMENT 

UNCLASSIFIED 

-7-

Chapters 2 and 21 of the Internal Revenue Code of 

1986 and regulations pertaining to those chapters. 

Laws within the meaning of paragraph 1 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 regulations promulgated for their specific 

implementation. 

Except as provided iu the following seutence, this Agreement 

shall also apply to legislation which amends or supplements 

the laws specified iu paragraph 1. This Agreement shall 

apply to legislatiou or regulations which extend the existing 

laws to other categories of beneficiaries or which involve a 

new branch of Social Security ouly if both Contracting States 

so agree. 

ANNOTATIONS AND COMMENTS 

will be entitled to receive such benefits. Although the Agreement does not apply to Medicare, a wor

subject only to Swiss laws by virtue of Part II of the Agreem

exempt not only from U. S. retirement, survivors and disability 

contributions but also from health insurance contributions u

and SECA. The new agreement updates a reference to th

Revenue Code of 1954" to the "Internal Revenue Code o

conform to the current designation of U.S. tax law. 

Because Switzerland is a party to European Union regulation 

which provides for the coordination of social security syste

States member to the European Economic Area and S

Article 2.2 provides that the laws to which the Agreement app

include treaties and other international agreements--for exam

country's bilateral social security agreements with third co

multilateral agreements. The purpose of this provision is to 

in cases where a person has periods of coverage in the United 

Switzerland and periods of coverage in a third country with 

United States or Switzerland has a social security agreeme

from all three countries may not be combined under the Ag

meet U.S. or Swiss benefit eligibility requirements. (See Part 

Article 2.3 provides that the Agreement will automatically ap

future U.S. or Swiss legislation that modifies the laws in A

The Agreement will apply to legislation that creates new ca

beneficiaries or new benefits only if both the United 

Switzerland agree. 

UNCLASSIFIED 

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PRINCIPAL AGREEMENT 

UNCLASSIFIED 

-8-

PARTIr 

General Provisions 

ARTICLE 3 

Personal Scope 

Unless otherwise provided, this Agreement shall apply to: 

a. nationals of either Contracting State, 

b. refugees who reside in either Contracting State, 

c. stateless persons who reside in either Contracting State, 

d. other persons, including family members and survivors, witb 

respect to the rights they derive from persons in letters a, b 

and c of tbis Article, and 

e. for the application of Articles 7, 8 paragraph 3, 9 to 12, 

20 to 26 and 29, to any person regardless of nationality. 

ANNOTATIONS AND COMMENTS 

Article 3 specifies five categories of persons to whom the 

applies: (I) U.S. or Swiss nationals, (2) refugees residin

Contracting State, (3) stateless persons residing in either C

State, (4) persons, regardless of nationality, who derive righ

any of the above (such as family members and survivor

nationals of other countries. See Article l.1(b), l.I(i), and 

definitions of "national," "refugee" and "stateless person." A

extends the provisions of the Agreement that eliminate 

security taxation, protect the confidentiality of exchanged in

and deal with claims handling to nationals of other countries. 

UNCLASSIFIED 

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1. 

2. 

PRINCIPAL AGREEMENT 

UNCLASSIFIED 

-9-

ARTICLE 4 

Equality of Treatment 

Unless otherwise provided in this Agreement, persons 

designated in Article 3 letters n, band c who reside in the 

territory of a Contracting State shall, in the application of the 

laws of that Contracting State, receive eqnal treatment with 

nationals of that Contracting State. 

Unless otherwise provided in this Agreement, family 

members and snrvivors of a national of a Contracting State 

who reside in the territory of a Contracting State shall, in the 

application of the laws of that Contracting State, receive 

equal treatment with family members and survivors of a 

national of that Contracting State. 

ANNOTATIONS AND COMMENTS 

Article 4.1 provides that the Competent Authorities will acco

or Swiss national, stateless person or refugee who resi

United States or Switzerland the same treatment regarding be

under that country's social security laws as that country acco

nationals. This provision would serve to eliminate discrimin

solely on a person's nationality. However, it would not affect 

that a country imposes on benefit eligibility or payment b

person is not lawfully present or was not authorized to w

country. 

Article 4 does not affect the coverage provisions of either cou

that are addressed in Part III of the Agreement. Further, A

obligates the United States to apply Article 4 only to 

authorized by section 233(c)(4) of the Act, which req

provisions in U.S. international socia! security agreements 

pursuant to section 233 be consistent with the other provision

ofthe Act. 

Article 4.2 extends the equality principle established in Ar

workers' dependents and survivors residing in either country. 

UNCLASSIFIED 

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PRINCIPAL AGREEMENT 

UNCLASSIFIED 

·10 -

ARTICLES 

Portability of Benefits 

Unless otherwise provided in this Agreement, benefits payable under 

the laws of one of the Contracting States shall be paid to nationals of 

the other Contracting State as well as to their family members and 

survivors, who are resident in the territory of a third State, on the 

same terms and to the same extent as to the nationals of the first 

Contracting State resident in the territory of this third State or to 

their family members and survivors. 

ARTICLE 6 

Application of National Laws 

This Agreement shall not prevent the application of provisions of the 

laws of either Contracting State concerning benefits that are more 

favorable to the persons listed in Article 3. 

ANNOTATIONS AND COMMENTS 

Article S provides that each country will pay benefits to natio

other country and to their family members and survivors 

reside outside both countries. This paragraph remov

restrictions on the payment of benefits which one country m

on nationals of the other country or on their dependents an

when they reside in a third country, In accordance with Articl

provision would remove restrictions for the United States o

extent authorized by section 233(c)(2) and (4) of the Act. 

Article 6 assures that anyone who receives or could recei

without the application of the Agreement will receive at lea

benefit amount under the Agreement. 

UNCLASSIFIED 

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1. 

2. 

PRINCIPAL AGREEMENT 

UNCLASSIFIED 

- II -

PART III 

Provisions Concerning Applicable Laws 

ARTICLE 7 

Coverage Provisions 

Unless otherwise provided in Part III of this Agreement, a person 

of any nationality who is employed in the territory of either 

Contracting State shall be subject, with respect to employment in 

that territory, to the laws on compulsory coverage of the 

Contracting State where the person is employed and, in 

determining the amount of contributions payable under the laws 

of that Contracting State, no account shall be taken of any income 

the person may receive from employment in the territory of the 

other Contracting State. 

Where a person of any nationality is in the service of an employer 

having a place of business in the territory of a Contracting State 

and is sent by that employer to the territory of the other 

ANNOTATIONS AND COMMENTS 

Article 7.1 establishes a basic territoriality rule, which stip

ordinarily a person's employment in one country will be cocovered by only that country. Thus, employment that would 

be covered under the laws of both countries will remain cov

the system of the country where the worker is employed, a

exempt from coverage under the system of the other country. 

Article 7.1 further provides that in determining the a

contributions due in one Contracting State, the Agenc

Contracting State will not consider income earned in 

Contracting State. This does not have an effect on the Un

because, under the basic territoriality rule in existing 

agreements, the United States does not compute a work

security taxes based on income for work performed in 

totalization agreement country. However, because even unde

territoriality rule, the Swiss advise that a worker's social sec

would be computed based on income for work perform

United States, the final clause of Article 7.1 precludes a pers

under Swiss social security for employment performed in S

from having to pay Swiss contributions on earnings f

performed in the United States in the same year. 

Under Article 7.2, an employee who normally works for an 

located in thc United States or in Switzerland who is t

transferred to work in the other country for the same emplo

UNCLASSIFIED 

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3. 

4. 

PRINCIPAL AGREEMENT 

UNCLASSIFIED 

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Contracting State for a period not expected to exceed 5 years, the 

person shall be subject to the laws on compulsory coverage of 

only the first Contracting State as if he or she were employed in 

its territory. 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 Switzerland, 

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. 

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. 

A person of any nationality who is self-employed in the territory 

of one or both Contracting States and who is a resident of one 

Contracting State shall be subject to the laws on compulsory 

coverage of only the Contracting State in whose territory the 

person resides. 

ANNOTATIONS AND COMMENTS 

affiliate of that employer as described in Section 3121(1) of 

Revenue Code) will continue to pay social security taxes to 

from which the employee transferred. This rule will apply 

employer expects the transfer to last 5 years or less. 

Under Article 7.3, the provisions of Article 7.2 will apply 

employee does not transfer directly from one country to th

first transfers to work in a third country. 

Article 7.4 eliminates dual coverage and contributions with 

self-employment. It provides that, with respect to the self-em

self-employed residents of Switzerland will pay social sec

only under Swiss laws and that self-employed U.S. residen

social security taxes only under U.S. laws. 

UNCLASSIFIED 

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5. 

1. 

PRINCIPAL AGREEMENT 

UNCLASSIFIED 

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Where the same activity is considered to be self-employment 

under tbe laws of one Contracting State and employment 

under the laws of the other Contracting State, tbat activity 

sball be subject to tbe laws of ouly the first Contracting State 

if the persou is a resident of that State, and to the laws of only 

the other Contracting State in any other case, 

ARTICLES 

Government Employment 

Part III of this Agreement shall not apply to the categories of 

persons listed in the provisions of the Vienna Convention on 

Diplomatic Relations of April 18, 1961, and of the Vienna 

Convention on Consular Relations of April 24, 1963. 

ANNOTATIONS AND COMMENTS 

Article 7.5 eliminates dual coverage in cases where the la

country consider a person's work activity self-employment 

laws of the other consider it employment. Under Article 7.5

who is a resident of the country that considers the work self-e

will pay social security taxes only under that country's laws. who is not a resident of the country that considers 

self-employment will pay social security taxes under the l

other country. 

Article 8.1, which provides coverage rules applicable to em

the U.S. and Swiss Governments, is the same in both the ol

agreements. It stipulates that, in general, the coverage provis

Agreement will not apply with respect to Government employ

categories of persons mentioned in the Vienna Conve

diplomatic and consular relations. The Conventions, to whic

United States and Switzerland are parties, apply to members 

of a diplomatic or consular mission, including the diplomatic

administrative, and technical staffs; family members of such 

form part of their households; the domestic service staff of th

and private servants employed by the members of such missio

In general, the Vienna Conventions exempt such persons f

security coverage and contributions under the laws of the h

unless specific arrangements waive their immunity from 

Persons whose immunity such arrangements waive would be 

the laws of the host country, including the coverage provisi

Agreement. 

UNCLASSIFIED 
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PRINCIPAL AGREEMENT 

UNCLASSIFIED 

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2. 

3. 

Nationals of the United States employed by the Government 

of the United States in the territory of Switzerland who are 

not exempt from Swiss laws by virtue of the Conventions 

mentioned in paragraph 1, shall be subject to the laws on 

compulsory coverage of only the United States. For the 

purpose of this paragraph, employment by the United States 

Government includes employment by an instrumentality 

thereof. 

An employee of any nationality of a public service in 

Switzerland who is posted to the territory ofthe Uuited States 

shall be subject only to Swiss laws. 

ARTICLE 9 

Airline Employees 

Traveling employees of any nationality 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 State. 

ANNOTATIONS AND COMMENTS 

Article 8.2 provides that if a U.S. national works 

U.S. Government in Switzerland but is not exempt from Swis

by virtue of the Vienna Conventions (for example, because 

does not work in a diplomatic or consular mission), the pers

subject only to U.S. laws. This provision applies no

U.S. Government employees, but also to persons work

U.S. Government instrumentality. 

Article 8.3 provides that if the Swiss Government sends a 

servant to work in the United States and that person is not ex

U.S. coverage by virtue of the Vienna Conventions, the pers

subject only to Swiss laws. This provision applies to c

servants, as well as persons contracted to work for the Gov

Switzerland. 

Under Article 9, a member of the flight crew of an aircraf

between the United States and Switzerland who would oth

social security taxes under the laws of both countries will 

security taxes only under the laws of the country in which th

has its headquarters. However, if the employee resides in 

country, he or she will pay social security taxes under the la

country. 

UNCLASSIFIED 

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PRINCIPAL AGREEMENT 

UNCLASSIFIED 

- 16-

ARTICLE 10 

Seafarers 

A person nf any natinnality emplnyed as an nfficer nr member nf a 

crew nn a vessel which flies the flag nf nne Cnntracting State and 

who. wnuld o.therwise be cnvered under the laws nf both Coutracting 

States shall be subject to. the laws uf nnly the Contracting State 

whnse flag the vessel flies. The activity pursued nn a vessel which 

flies the Swiss flag shall be deemed to. be an activity pursued un the 

territnry nf Switzerland. A vessel which flies the flag uf the 

United States is une defined as an American vessel under the laws nf 

the United States. 

1. 

2. 

ARTICLE 11 

Family Members 

Where in application of Part III a persnn nf any natinnality 

remains subject to. the laws nf nne Cnntracting State while 

wnrking in the territnry nf the nther Cuntracting State, the 

same applies to. the spnuse and the children, uf any 

natinnality, residing with that persnn in the territnry nf the 

secnnd Cnntracting State, provided that they are nut 

gainfully emplnyed themselves in the territnry of this 

Cnntracting State. 

Where in the application nf paragraph 1 Swiss laws apply to. 

the spouse and children, they are insured in the Swiss nld-age, 

survivnrs' .and disability insurance. 

ANNOTATIONS AND COMMENTS 

Under Article 10, a person employed on a U.S. or Swiss s

covered under the laws afboth the United States and Switzerl

covered only under the laws of the country whose flag the 

Article 10 provides that a ship flies the flag af the United Stat

American vessel as defined in section 210(c) af the Act. 

definition, an American vessel is one that is documented or 

under U.S. law or one that is nat documented or numbered 

laws af any country if its crew is employed solely by on

U.S. citizens ar residents or corporations organized under 

state law. 

Absent the Agreement, the Swiss social security program residents of Switzerland. Article 11.1 assigos social securit

and taxation for spouses and children who. accompany 

exempted from host country coverage under the provisions af

a spouse ar child resides with an exempted worker, the spou

will be subject anly to the laws of the country where the w

social security taxes, unless the spouse or child works i

cauntry. Thus, Swiss law will not cover a spouse or child w

with a worker exempted fram Swiss social security coverage 

spouse or child works in Switzerland. 

Under Article 11.2, spouses and children who are resid

United States, but who are subject to the laws af Switzerlan

Article 11.1, are cavered under and will pay cantributians to

UNCLASSIFIED 

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PRINCIPAL AGREEMENT 

UNCLASSIFIED 

- 17 -

ARTICLE 12 

Exceptions 

The Competent Authority of one Contracting State may grant an 

exception to the provisions of Part III of this Agreement or an extension 

of the period in Article 7 paragraph 2 of this Agreement in the interest of 

particular persons or categories of persons, if the Competent Authority of 

the other Contracting State agrees, provided that the affected person or 

persons will be subject to the laws on compulsory coverage of one of the 

Contracting States. 

PARTlV 

Provisions on Benefits 

CHAPTER 1 

Application of Swiss Laws 

ARTICLE 13 

Exceptions to Equality of Treatment 

ANNOTATIONS AND COMMENTS 

old-age, survivors and disability insurance system. 

Under Article 12, either country may grant an exception to th

rules of Part HI of the Agreement or extend the tempor

provided for in Article 7.2, if the other country agrees and 

involved remains subject to the coverage laws of one of the 

The Competent Authorities may grant such an exception or ex

behalf of an individual worker or on behalf of all workers 

under similar circumstances, e.g., in the same profession or fo

employer. This provision permits the Competent Authoritie

anomalous coverage situations that may arise to the disad

workers or to eliminate dual coverage in unforeseen circumsta

Part IV establishes the basic rules for detennining entitlemen

amount of U.S. and Swiss benefits in the case of people 

periods of coverage in both countries. The new Agreemen

substantive change in the original Agreement's rules for d

U.S. benefit eligibility or amounts, but does modify several Sw

provisions. 

The Swiss social security system provides health insuran

'sickness') benefits, accident and occupational disease 

benefits, traditional old-age, survivors and disability benefi

service and maternity earnings replacement benefits, o

old-age, survivors and disability benefits, family allow

unemployment insurance. The scope of the Agreement in

traditional and occupational old-age, survivors and disabili

schemes. Persons who meet the applicable eligibility re

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PRINCIPAL AGREEMENT 

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ANNOTATIONS AND COMMENTS 

qualify for Swiss social security system benefits. Such re

may include a minimum coverage period or date of coverag

Finally, Switzerland's social security system provides n

(extraordinary) benefits subject to income limits. These are 

scope of the Agreement, although similar U.S. income supp

are not 

Switzerland built its social insurance program around a 

system, which includes a basic, (ordinary) mandatory pay

old-age pension scheme, a mandatory occupational pension s

voluntary individual accounts. Both mandatory pillars p

voluntary coverage for certain workers not subject to the gen

mandatory coverage. Further, both mandatory pilla

contributions from employers and covered employees and sel

persons to qualify for benefits. 

FIRST PILLAR 

OLD-AGE BENEFITS 

The first pillar applies to all persons residing in Switzerland o

employed in Switzerland. To be eligible for benefits, a person one year of contributions. Under the first pillar, the full retirem

65 for men and 64 for women. Early retirement is possible at 

years before retirement age. A deferred old-age benefit is po

one to five years after full retirement age. A deferred benefit p

increased benefit amount that takes into account the period du

the worker was eligible for a benefit but not yet receiving 

benefits based on the old-age benefit are payable if the child i

age of 18 or if the child is in military or vocational training an

age 25. These cannot exceed 60 percent of the maximu

old-age benefit per child. Child's benefits are not payab

retirees for the period between early and full retirement 

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PRINCIPAL AGREEMENT 

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ANNOTATIONS AND COMMENTS 

monthly benefit consists of a fraction of tbe minimum old-

(fixed amount) and a fraction of the determining average ann

(variable amount). The average annual income consists 

income from paid employment (the contributions of perso

gainful employment are counted as income from paid employm

bonuses for child rearing and service as a caregiver. 

SCRVIVORS BENEFITS 

To qualify for survivors benefits, a widow must be caring fo

be 45 years old and married for at least five years when wid

receives 80 percent of the benefit of tbe deceased worker. 

divorced spouses may qualify under certain conditions. Wido

stop if the widow remarries prior to full retirement age. A 

caring for a child under the age of 18 receives 80 percent of 

of the deceased worker. Orphan's benefits are payable to 

children under age 18 (or age 25 if tbe child is in military or 

training). Orphan's benefits are 40 percent of the old-a

amount, or a maximum of 60 percent if both parents are 

Surviving Same-sex registered partners are treated as widower

DISABILITY BENEFITS 

The first pillar finances disability benefits under tbe same pay

scheme that administers old-age and survivors benefits. The o

survivors compensation fund addresses any fluctuations 

available to the disability program, and covers the sam

Disability benefits require a minimum of three years of co

They are payable six months after the filing date to cover

age 18 and one month or older who qualify. Qualificatio

permanent or long-term full or partial earning capacity los

physical, mental or psychological healtb impairment persi

treatment and rehabilitation. Disability may result from a 

UNCLASSIFIED 

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PRINCIPAL AGREEMENT 

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- 20-

ANNOTATIONS AND COMMENTS 

disease, or from sickness or an accident. The monthly disabiconsists of a percentage of the old-age benefit determin

percentage degree of disability. Disability benefits are 100 pe

old-age benefit with more than 69 percent disability; 75 pe

60-69 pcrcent disability; 50 percent with 50-59 percent dis

25 percent with 40-49 percent disability. A complete disabi

results when the disabled person's work history includes co

over the same number of years as his or her age cohort. A pa

is payable if the number of years of contributions is lower t

the disabled person's age cohort. Benefits are no longer pay

disability ends, the disabled person qualifies for an old-age 

when he or she dies. 

SECOND PILLAR 

OLD-AGE BENEFITS 

The second pillar occupational old-age benefits scheme 

employees over the age of 24, covered under the first pillar a

an annual salary above a specified amount. Persons not m

covered and the self-employed may opt to contribute into 

pillar. While it is not possible to qualify without coverage, t

minimum contribution requirements to qualify for second pill

Under the second pillar, men must contribute from age 25 

women from age 25 to 64 to qualify for a full benefit. As un

pillar, the full retirement age is generally 65 for men, and 64 

although individual pension fund regulations may specif

retirement age regardless of gender. Early retirement as early 

is possible if individual pension fund regulations so provide

sum payments are possible under certain conditions. Child's 

payable for children under age 18 who would qualify for a

benefit in the event of the insured person's death (or age 25 if 

in military or vocational training). The child's benefit am

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PRINCIPAL AGREEMENT 

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ANNOTATIONS AND COMMENTS 

same as the second pillar orphan's benefit, for each child. 

SURVNORS BENEFITS 

To qualify for survivors benefits, a surviving spouse must be c

child, or be 45 years old and married for at least five y

widowed. The surviving spouse may receive a maximum 

60 percent of the retirement or disability benefit the decea

have received. A childless surviving spouse under the age of 

a lump sum benefit equal to three years' benefits. Survivin

spouses may qualifY under certain conditions. Surviving spou

stop if the surviving spouse remarries prior to full retire

Orphan's benefits are payable to surviving children under a

age 25 if the child is in military or vocational training). Each 

child's benefit is 20 percent of the full disability benefit th

would have received, for each child. Swiss law treats 

same-sex registered partners as surviving spouses. 

DISABILITY BENEFITS 

The second pillar disability benefit scheme applies to emplo

than 17 with earnings above a specified amount. P

mandatorily covered and the self-employed may opt to con

the second pillar. Second pillar pension funds cover earning

particular range called the 'coordinated salary'. Second pillar 

cover earnings below the specified amount, but may not cov

beyond a specified limit. Persons at least 40 percent disabled 

pillar rules and covered at disability onset qualifY. Th

disability benefit consists of a percentage of the second pil

benefit. This includes consideration of theoretical earnings fo

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PRINCIPAL AGREEMENT 

UNCLASSIFIED 

-22-

Article 4 shall not apply to Swiss laws: 

a. on the voluntary old-age, survivors' and disability 

insurance; 

b. on old-age, survivors', and disability insurance of 

Swiss nationals who are gainfully occupied abroad in 

the service of the Swiss Confederation or 

organizations in the meaning of subparagraph l(c) of 

Article la of the Federal law on old-age and survivors' 

insurance; aud 

c. on the voluntary old-age, survivors' and disability 

insurance for Swiss nationals employed by 

organizations in the meaning of subparagraph 4(b) of 

Article la of the Federal law on old-age and survivors' 

insurance. 

ARTICLE 14 

Totalization for Swiss Benefits 

ANNOTATIONS AND COMMENTS 

between disability and retirement age. Benefit levels are sub

percentage degree of disability. Second pillar disability b

100 percent of the second pillar old-age benefit with 

69 percent disability; 7S percent with 60-69 percent disability; 

with 50-59 percent disability and 25 percent with 40-4

disability. 

Article 13 provides three general exceptions to Article 

treatment provision with respect to Swiss social security la

Article 4 does not apply to voluntary coverage under the 

mandatory old-age, survivors' and disability insurance pensi

Such coverage is available to Swiss nationals and na

European Union (EU) countries who live outside of Swi

non-EU countries and whom Swiss law previously compulsor

for at least 5 years without interruption. With respect to 

coverage under the mandatory occupational pension scheme

will also not apply to salaried workers ineligible for mandatory 

or to self-employed people under the same pension scheme

Article 4 does not apply to coverage under the ordinary, 

old-age, survivors' and disability insurance pension scheme 

Government employees working abroad or persons employed 

certain international aid organizations receiving substantial su

the Swiss Government. Finally, Article 4 does not apply to 

coverage for Swiss nationals under the ordinary, mandato

survivors' and disability insurance pension scheme if they 

certain international organizations in Switzerland to which 

grants privileges, immunities and terms including exemp

obligatory coverage. 

UNCLASSIFIED 

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PRINCIPAL AGREEMENT 

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Where a person does not meet the requirements for 

entitlement to an ordinary pension from the Swiss disability 

insurance solely on the basis of the periods of coverage 

completed according to Swiss laws, the Agency shall take into account, for the acquisition of the right to benefits, 

United States periods of coverage, as long as these periods do 

not overlap with those completed according to the Swiss laws. 

ANNOTATIONS AND COMMENTS 

Article 14 describes the process of combining periods of U.S. 

coverage to detennine eligibility for Swiss totalization benefit

ordinary disability insurance pension program. It stipulates th

person has completed at least 1 year of Swiss ordinary 

insurance pension coverage, Switzerland will add US. q

coverage to the person's Swiss coverage in detennining w

person meets the minimum requirements for ordinary disabili

This I-year coverage requirement is similar to the U.S. 6 

coverage requirement in Article 18.1. Switzerland will 

quarters of coverage that coincide with periods of covera

credited under Swiss laws. 

2. Where the periods of coverage completed according to Swiss 

laws do not amount to one year, paragraph 1 does not apply. 

3. 

1. 

The amount of the benefits shall be determined solely on the 

basis of the periods of coverage completed according to Swiss 

laws. The calculation is carried out according to Swiss laws. 

ARTICLE 15 

Rehabilitation Measures 

United States nationals, who, immediately prior to eligibility 

for rehabilitation measures have been liable to pay 

contributions to the Swiss old age, survivors' and disability 

Article 14.3 provides that where entitlement to a Swis

disability insurance pension benefit is established based on 

U.S. and Swiss periods of coverage, Swiss law shall con

periods of coverage credited under Swiss laws in detennining 

payable. 

Note: Changes in Swiss laws after the previous Agreement e

force eliminated the requirement for persons to have curren

under the Swiss system at the time of disability onset for 

purposes. 

Article 15.1 provides that in order for U.S. nationals to 

rehabilitation measures under the Swiss ordinary old-age, sur

disability insurance pension scheme, they generally must co

UNCLASSIFIED 

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2. 

3. 

4. 

PRINCIPAL AGREEMEl'I'T 

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-24 -

insurance, shall be entitled to such measures as long as they 

are physically present in Switzerland. 

United States nationals, who are not gainfully employed and 

who, immediately prior to eligibility for rehabilitation 

meaSUres have not been liable to pay contributions to the 

Swiss old age, survivors' and disability insurance because of 

their age, but nevertheless have been insured under this 

insurance, shall be entitled to such measures as long as they 

are domiciled in Switzerland, if, immediately prior to 

eligibility for the measures they have resided in Switzerland 

without interruption for at least one foil year. Minor children 

shall, moreover also be entitled to such measures if they are 

domiciled in Switzerland and if they have either been born 

disabled there or have resided there withont interruption 

since birth. 

United States nationals residing in Switzerland who leave 

Switzerland for a period not exceeding three months shall not 

be deemed to have interrupted their residence in Switzerland 

within the meaning of paragraph 2. 

A child who is a United States national and who is born 

disabled in the United States to a mother who: 

a. is domiciled and insured in Switzerland; and 

b. was absent from Switzerland for not more than 

2 months before the birth; 

shall be treated as a child born disabled in Switzerland. In 

ANNOTATIONS AND COMMENTS 

the scheme immediately prior to eligibility, and must be 

present in Switzerland. 

Some U.S. nationals may not have worked and may not hav

under the Swiss ordinary old-age, survivors' and disability 

pension scheme immediately prior to eligibility for the 

rehabilitation measures because of their age. (Compulsor

under Swiss ordinary old-age, survivors' and disability insu

with the month of attairunent of age 65 for men, age 64 for w

this case, Article 15.2 provides an alternative requiremen

domicile and one uninterrupted year's Swiss residence im

before rehabilitation measures eligibility. Further, minor ch

Swiss domicile can qualify for rehabilitation measures if they 

disabled in Switzerland or resided there from birth without int

Under Article 15.3, in applying any of the residency tests of A

to a U.s. national, an absence from Switzerland of a perio

months or less will not constitute a period of interruptio

residence. Article 15.4 establishes that Swiss laws will treat as a child bo

in Switzerland any child who is a U.S. national born disa

United States to a Swiss-domiciled mother insured under 

ordinary old-age, survivors' and disability insurance sche

mother is absent from Switzerland 2 months or less before 

birth. Further, with respect to the mother and child referreprevious sentence, Swiss ordinary disability insurance benefit

expenses incurred outside of Switzerland for the first three m

partum in caring for a congenitally handicapped child, pr

UNCLASSIFIED 

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PRINCIPAL AGREEMENT 

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.25 -

the case of a congenitally handicapped child, Swiss disability 

insurance shall also be responsible for meetiug expenses 

incurred abroad during the first three months after the birth 

to the same extent as it would have been required to meet 

these in Switzerland. 

Paragraph .4 shall apply mutatis mutandis to a child born 

disabled outside the territory of the Contracting States; in 

such case, the Swiss disability insurance shall be responsible 

for meetiug expenses incurred in the third State only if the 

measures had to be awarded there on an emergency basis due 

to the state of health ofthe child. 

ARTICLE 16 

Extraordinary Pensions 

ANNOTATIONS AND COMMENTS 

Swiss ordinary disability insurance system would have had to 

expenses in Switzerland. 

Article 15.5 extends the stipulations of Article 15.4 to childre

third country, provided the accrual of expenses referred to in A

was on an emergency basis due to the health of the child. 

UNCLASSIFIED 

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1. 

2. 

3. 

PRINCIPAL AGREEMENT 

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United States nationals shall, under the same conditions as 

Swiss nationals, be entitled to receive a Swiss extraordinary 

snrvivors' pension, disability pension or old age pension 

which replaces a disability or survivors' pension if, 

immediately before the date from which they claim the 

pension they have resided in Switzerland for a continuous 

period of not less than five years. 

For the purpose of paragraph 1: 

a. no account shall be taken of any period during which 

the persons concerned were exempted from the Swiss 

old age, survivors' and disability insurance; and 

b. a period of residence in Switzerland shall not be regarded 

as interrupted if the absence from Switzerland is not more 

than three months in any calendar year. The period of 

three months may be extended in exceptional cases. 

The refund of contributions paid under Swiss laws and lump 

sums in accordance with Article 17 shall not prevent the granting 

of extraordinary pensions in accordance with paragraph 1. 

However, in such cases, the lump sum paid out shall be deducted 

from the amount of pension to be paid out. 

ANNOTATIONS AND COMMENTS 

Extraordinary pensions under the Swiss system are flat rate, n

benefits payable to Swiss nationals in Switzerland who do not 

ordinary social security pensions or whose ordinary pensions 

than the amount of an extraordinary pension. Under A

U.S. nationals will qualify for the extraordinary survivors', d

old-age pension that replaces an ordinary disability or survivo

if they reside in Switzerland continuously for five years befor

the pension. Unlike the prior Agreement, this Agreement p

Article 16.2(a), that periods during which a person was ex

making contributions to the Swiss ordinary old-age, surv

disability insurance schemes will not be subtracted from perio

residence for purposes of calculating the continuous five year

in Article 16.1. Further, under Article 16.2(b), the Swiss A

not consider an absence from Switzerland for three months o

calendar year a break in residence for purposes of m

continuons five year period. 

Under Article 16.3, a refimd of contributions wiII not p

payment of extraordinary pensions under Swiss laws if th

meets the conditions of Article 16. This is an exception to 

rule precluding such payment in Article 17.4. These ne

pensions are payable due to old-age, disability or death. 

Switzerland pays the extraordinary pensions even to people 

never have contributed to the Swiss system, the old-age, sur

disability insurance fimds finance extraordinary pensions. I

inequitable to those Swiss contribntors who had not received 

their contributions if U.S. nationals could qualify for ex

pensions after having their contributions refimded. A

provides, therefore, that U.S. nationals who receive Swiss ex

pensions after receiving a contribution refimd will have the 

their refimded contributions deducted from their pensions. 

UNCLASSIFIED 

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PRINCIPAL AGREEMENT 

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ARTICLE 17 

Lump Sum Payments 

If a United States national or his or her survivor who does not 

reside in Switzerland is entitled to an ordinary partial 

pension under the Swiss old age and survivors' insurance 

which is equal to not more than 10 percent of the 

corresponding ordinary full pension, that person shall be 

granted instead of the partial pension, a lump sum which 

corresponds to the capitalized value of the pension payable 

nnder Swiss law when the insured event occnrs. If a U.S. 

national or his or her survivor, who received such a partial 

pension, permanently leaves Switzerland, that person shall 

also be granted a lump sum which corresponds to the 

capitalized value of that pension at the time of departure. 

ANNOTATIONS AND COMMENTS 

In order to avoid paying very small pension amounts, A

requires that any U.S. national residing outside Switze

qualifies for a Swiss partial ordinary old-age and survivors

pension amounting to 10 percent or less of the correspondin

full pension will receive instead a lump sum based on the 

value of the pension at entitlement. Article 17.1 applies this r

to a U.S. national who, already receiving such a partial pensi

Switzerland permanently. In this case, however, the lump s

corresponds to the capitalized value of the partial ordinary pen

time of departure from Switzerland. 

UNCLASSIFIED 

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3. 

4. 

5. 

PRINCIPAL AGREEMENT 

lJNCLASSIFlED 

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If the ordinary partial pensjon. is eqnivalent to more than 

10 percent but not more than 20 percent of the corresponding 

ordinary full pension, a U.S. national or his or her survivor 

who does not reside in Switzerland or who is permanently 

leaving Switzerland may opt between having the pension paid 

or a lump sum. This option shall be made during the course of the procedure to determine the pension if the entitled 

person is staying outside Switzerland when the insured event 

occurs, or when leaving the country, if the entitled person 

already received a pension iu Switzerland. 

In the case of a married couple where both spouses have been 

insured under the Swiss insurance, the lump sum is paid only 

when both spouses are eligible to a pension. 

When the lnmp sum has been paid out by the Swiss Agency 

no further claims can be asserted against that Agency in 

respect of previous contributions paid or of corresponding 

periods of coverage. 

Paragraphs 1 to 4 shall apply mntatis mutandis to ordinary 

pensions of the Swiss disability insurance provided that: 

u. the person, who has entitlement, has attained the age 

of 55 yearSj and 

b. the Swiss insurance does not require any further 

verification of the fulfillment of the conditions 

concerning the disability of that person. 

ANNOTATIONS AND COMMENTS 

Article 17.2 applies to U.S. nationals residing outside Swi

pennanently departing Switzerland. Such persons whose Swi

partial pension amount will exceed 10 percent but not 20 per

full ordinary pension may opt to receive either periodic paym

Switzerland or a one-time lump sum payment. The bene

choose the type of payment at entitlement to the pension or a

from Switzerland, whichever is later. 

Swiss laws provide different methods of calculating benefits 

and married persons. Under Article 17.3, if both spouses hav

under the Swiss system, no lump sum payout as described in A

is possible until both spouses are eligible to receive a Swi

partial pension. 

Article 17.4 provides that once a worker elects to receive a 

benefit, neither previous contributions nor corresponding 

coverage can count towards further benefit claims. 

Article 17.5 stipulates that the provisions in paragraphs 1-4 o

also apply to Swiss ordinary disability insurance benefits, sub

specific conditions for payment of the lump sum or pens

subparagraph (a) requires that the disabled person must ha

age 55. Second, subparagraph (b) establishes the further con

the lump sum or pension is payable only if the Swiss Agency 

additional verification of the person's disability. 

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CHAPTER 2 

Application of United States Laws 

ARTICLE 18 

United States Benefits 

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, periods of coverage completed under 

Swiss laws shall be taken into account to the extent they do not 

coincide with calendar quarters already credited as quarters of 

coverage under United States laws. 

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 three months of coverage certified as creditable by the Agency of Switzerland to the extent that the 

months do not coincide with calendar quarters already credited as 

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

four. 

ANNOTATIONS AND COMMENTS 

Article 18 contains rules for determining U.S. benefit elig

amounts under the Agreement. Article 18 applies to people 

periods of coverage based on wages for employment or self-e

income, or periods of payment of contributions, under the soc

system of Switzerland, and who have at least six quarters of c

the United States, but who do not have enough U.S. coverage 

for U.S. benefits. In such cases, SSA, in accordance with A

will take into account periods of Swiss coverage insofar as th

do not coincide with quarters of coverage already cred

U.S. laws. 

Article IS.2 establishes the procedure that SSA will follow in 

periods of coverage under the Swiss system into periods o

under the U.S. system. The U.S. system measures periods of 

terms of calendar quarters, while the Swiss system measures c

months. Beginning in 1978, the U.S. bases quarters of cove

amount of a person's annual earnings (e.g., for 2013, $1,160 

equals one quarter of coverage). 

Under Article 18.2, SSA will credit one quarter of coverage in 

year for every 3 months of Swiss coverage certified for that 

Swiss Agency. However, SSA will not credit months of Swis

that fall within a calendar quarter that SSA has already cr

U.S. quarter of coverage. In addition, SSA will not credit 

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Where entitlement to a benefit under United States laws is 

established according to the provisions of paragraph I, 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 credited under United States laws to the duration of a coverage lifetime as determined in accordance with 

United States laws. 

Benefits payable under United States laws shall be based on the 

pro rata primary insurance amount. 

Entitlement to a benefit from the United States which results 

from paragraph 1 shall terminate with the acquisition of sufficient 

periods of coverage under United States laws to establish 

entitlement to a higher benefit without the need to invoke the 

provision of paragraph 1. 

Articles 4 and 5 of this Agreement shall be applied by the 

United States in a manner consistent with section 233(c)(4) of 

the United States Social Security Act. 

ANNOTATIONS AND COMMENTS 

4 quarters of coverage for any calendar year. 

Article 18.3 describes the method of computing U.S. benef

when entitlement is established by totalizing (i.e., combining) 

U.S. coverage and periods of Swiss coverage. Under the 

outlined in Article 18.3, the amount of the worker's benefit 

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

coverage under U.S. Social Security. SSA regulations 

404.1918 as revised July 24, 1984) describe this computation 

in detail. The first step in the procedure is to compute a theoretic

Insurance Amount (PIA) as though the worker had spent a fu

lifetime (i.e., full career) under U.S. Social Security at the sa

earnings as during his or her actual periods of U.S. covered w

then prorates the theoretical PIA to' reflect the proportion of 

lifetime completed under the U.S. program. SSA regulation

coverage lifetime as the number of the worker's benefit c

years, i.e., the years used in determining a worker's averag

under the regular U.S. national computation method. 

Article 18.4 provides that when a worker who is entitled to 

totalization benefit from the United States acquires 

U.S. coverage which enables him or her to qualifY for an equa

benefit based solely on his or her u.s. coverage, SSA w

regular national law benefit rather than the totalization benefit

Section 233(c)(4) of the Social Security Act requires U.S. in

social security agreements to contain certain benefit and 

provISIons. Section 233(c)(2) permits agreements be

United States and another country to contain exceptions to 

non-payment provisions of the Social Security Act for b

residing in the other country. In addition, section 233(c)

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PRINCIPAL AGREEMENT 

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PART V 

Miscellaneous Provisions 

ARTICLE 19 

Administrative Arrangements 

The Competent Authorities of the two Contracting States shall: 

a. Make all necessary administrative arrangements for the 

implementation of this Agreement and designate liaison 

agencies; 

b. Define the procedures for reciprocal administrative 

assistance, including the allocation of expenses associated 

with obtaining medical, administrative, and other 

evidence required for the application of this Agreement; 

c. Communicate to each other infonnation concerning the 

measures taken for the application of this Agreement; and 

d. Communicate to each other, as soon as possible, 

infonnation concerning all changes in their respective 

laws which may affect the application of this Agreement. 

ANNOTATIONS AND COMMENTS 

agreements to contain other provisions which are not incons

the provisions of title II of the Social Security Act. Article 

clear that where the only authority for the equality of trea

benefit portability provisions contained in Articles 4 

section 233(c)(4), SSA will apply these provisions only to the 

do not conflict with other provisions oftille II. 

Article 19 outlines various duties of the Competent Authoritie

Agreement. Paragraph (a) authorizes and requires the 

Authorities to conclude an Administrative Arrangement an

necessary administrative measures to implement the Agreem

as to designate liaison agencies. Paragraph (b) requires the 

Authorities to establish jointly procedures for mutual adm

assistance in administering the Agreement. Paragraph (c) rCompetent Authorities to notify each other of the measures 

taken unilaterally to implement the Agreement and par

obligates the Competent Authorities to notify each other of a

in their respective social security laws that may affect the app

the Agreement. 

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PRINCIPAL AGREEMENT 

ARTICLE 20 

Mutual Assistance 

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ANNOTATIONS AND COMMENTS 

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. 

Article 20 provides authority for the two countries to furnish 

non-reimbursable assistance in administering the Agreeme

assistance may include the taking of benefit application

gathering and exchange, including the electronic exc

information relevant to claims filed and benefits paid 

Agreement. Although Article 20 establishes a general pri

mutual administrative assistance will be free of charge, the 

authorizes the two sides to agree to exceptions, such as the 

regarding medical examinations in Article 8.2 of the Adm

Arrangement. 

1. 

ARTICLE 21 

Confidentiality of Exchanged Information 

Unless otherwise required by the national statutes of a 

Contracting State, personal data transmitted in accordance 

with this Agreement to that Contracting State by the other 

Contracting State shall be nsed 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. 

Both the United States and the Switzerland have statutes and 

that govern disclosure and provide strict safeguards for main

confidentiality of personal data that is in the possessio

respective Governments. In the United States, these statutes 

Freedom of Information Act, the Privacy Act, section 61

Internal Revenue Code, and pertinent provisions of the Soci

Act and other related statutes. Article 21.1 provides that pe

which one country furnishes to the other under the Agreem

protected in accordance with the applicable provisions of the p

confidentiality laws of the country that receives the personal d

2. The Competent Authorities of the Contracting States shall Article 21.2 provides that if either the United States or S

inform each other about all amendments to their national modifies any of its statutes that regulate the privacy or confid

statutes regarding the protection of privacy and personal data transmitted between the countries, the 

confidentiality of personal data that affect the transmission of Authority of the Contracting State that modified its statute m

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4. 

5. 

6. 

PRINCIPAL AGREEMENT 

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personal data. 

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 institution, and duration of use of the subject's 

personal data and the purpose aud legal grounds for which 

such data were used or requested. 

Ageucies shall take all reasonable steps to ensure that 

transmitted personal data are accurate and limited to data required to fulfill the receiving Ageucy's request. In 

accordance with their respective national statutes, Agencies 

shall correct or delete any inaccurate transmitted personal 

data and any data uot required to fulfill the receiving 

Ageucy's request, and immediately notify the other Agency of 

such correction or deletion. This shall not limit a subject's 

right to reqnest such correctiou or deletion directly from the Agencies. 

Both the transmitting and the recelvmg Agency shall 

effectively protect personal data against unauthorized or 

illegal access, alteration, or disclosnre. 

Unless otherwise required by the national statutes of a 

Contracting State, employers' iuformation transmitted 

ANNOTATIONS AND COMMENTS 

the Competent Authority of the other Contracting State. 

Article 21.3 protects a person's right to request particular i

about any of his or her personal data requested from or transm

United States or Switzerland under the Agreement. Article 

provides that when a person requests such infonnation about personal data from a country, that country must provide the 

information to the person. 

Article 21.4 provides that both the United States and Switz

ensure the accuracy of personal data transmitted betwee

countries and will limit the transmission of personal data t

intormation necessary to satisfy the other country's request. 

However, if one country later discovers that it transmitted o

inaccurate personal data or additional personal data not r

satisfy a country's request, the country that discovers the d

will correct or delete the personal data in question and im

notify the Agency of the other country. The United 

Sv.1tzerland will perfonn such correction or deletion in accor

their respective statutes governing alteration and destruction o

Article 21.4 also recognizes the right of a person to directly r

either Agency correct or delete any of his or her own person

he or she discovers to be inaccurate or not required to 

Contracting State's request. 

Under Article 21.5, both the United States and Switzerlan

protect the integrity, privacy, and confidentiality of personal 

receiving or transmitting such data under this Agreement. 

The United States and Switzerland agree to apply the pro

Article 21 to infonnation received from employers, includi

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2. 

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PRINCIPAL AGREEMENT 

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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 goveru such use. 

ARTICLE 22 

Documents 

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. 

Copies of documents which are certified as true aud exact 

copies by the Ageucy of one Contracting State shall be 

accepted as true and exact copies by the Agency of the other Contracting State, without further certification. The Agency 

of each Contracting State shall be the fmal judge of the 

probative value of the evidence snbmitted to it from whatever 

source. 

ARTICLE 23 

Correspondence and Language 

The Competent Authorities and Agencies of the Contracting 

States may correspond directly with each other and with any 

ANNOTATIONS AND COMMENTS 

limited to, companies, corporations, and affiliates as 

section 3121(1) of the Internal Revenue Code. This provisio

protection with regard to additional types of information supp

Agencies, such as business information provided in connect

request for a certificate of coverage. (See Article 3 of the Adm

Arrangement) Article 22.1 provides that if the laws of one country exempt 

submitted in connection with a social security claim fro

charges, that exemption will also apply if such documents are 

other country by or on behalf of a claimant or beneficiary. 

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

furnishes to an Agency of the other country is a true and exact 

original document, the other country will accept this c

Nevertheless, each country will remain the final judge of th

value of any documents submitted to it. 

Article 23.1 authorizes direct correspondence between the 

Authorities and Agencies of the two countries and between th

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3. 

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PRINCIPAL AGREEMENT 

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person wherever the person may reside whenever it is necessary 

for the administration of this Agreement. The correspondence 

may be in the writer's language. 

An application or document may not be rejected by a Competent 

Authority or Agency of a Contracting State solely because it is in 

a language of the other Contracting State. 

The notices of decisions of an Agency or a tribunal which, under 

the laws of a Contracting State, require personal delivery may be 

transmitted directly by registered letter to a person in the territory 

ofthe other Contracting State. 

ARTICLE 24 

Applications 

A written application for benefits filed with an Agency of one 

Contracting State shall protect the rights of the claimants under 

the laws of the other Contracting State if the applicant requests 

that it be considered an application under the laws of the other 

Contracting State. 

ANNOTATIONS AND COMMENTS 

and any person with whom they may need to communi

correspondence may be in either country's language. 

The Competent Authorities and Agencies of each country may 

an application or document because it is in a language o

country. SSA already accepts applications and documents wr

language. 

Swiss law requires the formal serving on the individual of s

official documents, such as adverse appeal decisions. F

residing abroad, this requires transmitting the documen

consular offices. Article 23.3 simplifies this procedure by per

transmission of such documents directly to the individual by 

mail. The provisions of this article have no effect on U.S. proc

Under Article 24.1, a written application submitted to an Age

country will protect a claimant's right to benefits under the laws 

country as if the application had been presented in the oth

provided the applicant expresses an intent to file for benefits i

country when the application is filed. 

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3. 

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PRINCIPAL AGREEMENT 

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If an applicant has filed a written application for benefits 

with an Agency of one Contracting State and has not 

explicitly requested that the application be restricted to 

benefits under the laws of that Contracting State, the 

application shall also protect the rights of the claimants 

under the laws of the other Contracting State if the applicant 

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 otber Contracting 

State. 

An applicant may request that an application submitted to an 

Agency of one Contracting State be effective on a different date 

in the other Contracting State within the limitations of and in 

conformity with the laws of the other Contracting State. 

ARTICLE 25 

Appeals and Time Limits 

A written appeal of a determination made by an Agency of one 

Contracting State may be validly filed with an Agency of the 

other Contracting State. The written appeal shall be decided 

according to the procedure and laws of the Contracting State 

whose decision is being appealed. 

ANNOTATIONS AND COMMENTS 

An applicant who files an application with the Competent In

one country may not always be fully aware of his or her bene

the other country. Article 24.2 provides that, in the abse

expression of intent to file for benefits under the laws of 

country, the application will also protect the claimant's rights 

country if the applicant indicates, at the time of filing, that the 

whose record benefits are claimed has been covered under 

security system of the other country. 

Under Article 24.3, an applicant for benefits may speci

application is to have a different effective date in the oth

within the limits of the laws of the other country. This prov

affect benefit payment amounts, for example, for people w

take advantage of delayed retirement credit provisions unde

country's laws. 

Both the United States and the Switzerland have fonnal pro

appealing adverse determinations of their Agencies. Under Art

claimant may file a written appeal of a decision by an Age

country with the Agency of that country or with the Agency o

country. In either case, the appropriate Agency of the coun

decision an individual is appealing would consider the appea

its own laws and procedure. 

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PRINCIPAL AGREEMENT 

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2. 

3. 

Any claim, notice or written appeal which must be filed within a 

given period of time with an Agency of one Contracting State 

shall be considered to have been timely filed if the claim, notice 

or written appeal has been filed within such period with a 

corresponding Agency of the other Contracting State. In such 

case, the Agency with which the claim, notice or written appeal 

has been filed shall indicate the date of receipt of the document 

on this document and transmit it without delay to the Agency of 

the other Contracting State. 

With respect to Switzerland, appeals which must be filed within a 

given period of time with a tribunal in Switzerland shall be 

considered to have been timely filed if it is shown that the appeal 

has been filed within such period with the Agency or a court in 

the United States. 

ARTICLE 26 

Currency 

The amount of any benefit due in accordance with the provisions of this 

Agreement may be paid in the currency of the Contracting State whose 

Agency is responsible for such benefit. 

ARTICLE 27 

Resolution of Disagreements 

Any disagreement regarding the interpretation or application of this 

Agreement shall be resolved by consultation between the Competent 

Authorities. 

ANNOTATIONS AND COMMENTS 

Article 25.2 provides that a claim, notice or written app

claimant must file within a prescribed time limit with an Age

country will be considered filed on time if it is filed within 

with an Agency of the other country. The Agency with 

claimant has filed the claim, notice or written appeal shall 

immediately to the Agency of the other country, indicating on 

date the Agency received the document. 

Appeals which must be filed within a time limit with a Swiswhich the claimant presents within the time limit to SSA or a 

will be considered to have been timely filed with the Sw

However, U.s. courts incur no obligations because ofthis prov

The Agencies may pay benefits under this Agreement in the c

the paying country. The normal U.S. practice is to pay 

U.S. dollars. Article 27 obligates the Competent Authorities to attempt to r

dispute between them regarding the Agreement throu

consultation or negotiation. 

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ARTICLE 28 

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. Such agreements may be given 

retroactive effect if they so specify. 

1. 

2. 

3. 

PART VI 

Transitional and Final Provisions 

ARTICLE 29 

Transitional Provisions 

This Agreement shall also apply to events which occurred prior 

to its entry into force that are relevant to rights under the laws in 

Article 2 of this Agreement. 

This Agreement shall not establish any claim to payment of a 

benefit for any period before its entry into force, or to a 

lwnp-sum death benefit if the person died before its entry into 

force. 

Consideration shall be given to any period of coverage and any 

period of residence under the laws of either Contracting State 

ANNOTATIONS AND COMMENTS 

Article 28 provides that the Competent Authorities may 

Agreement by concluding supplementary agreements, witretroactive application. After a supplementary agreemen

effective, it will be considered an integral part of the Agreeme

Under Article 29, the Agencies will consider events mate

determination of benefit rights such as marriage, death, d

attainment of a certain age, which occur prior to the effective 

Agreement, in applying the Agreement. 

Under paragraph 2, the Agencies will pay benefits bas

Agreement for periods beginning with the date on which the 

enters into force. The U.S. will pay any lwnp-swn death 

provided by section 202(i) of the U.S. Social Security Act 

Agreement only if the death occurs on or after the Agreement

date. An identical provision was included in Article 22.2 of t

Agreement. Paragraph 8 of this Article provides for the main

benefit rights established in accordance with the original Agre

In determining benefit eligibility and amounts under the A

Article 29.3 provides for the consideration of periods o

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5. 

6. 

7. 

8. 

PRINCIPAL AGREEMENT 

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occurring before the entry into force of this Agreement, in order 

to determine the right to benefits under this Agreement. 

This Agreement shall not apply to rights settled by a lump-sum 

payment or refund of contributions. 

Determinations made before the entry into force of this 

Agreement shall not affect rights arising under it. 

This Agreement shall not result in the reduction of benefit 

amounts because of its entry into force. 

Upon the entry into force of this Agreement, the Agreement 

between the United States of America and the Swiss 

Confederation on Social Security and the Protocol of July 18, 

1979, as well as the Supplementary Agreement between tbe 

two Contracting States of June 1, 1988, shall be terminated 

and replaced by this Agreement. 

Any benefit acquired by a person, or coverage determination 

issued, in accordance with the provisions of the Agreement 

between the United States of America and the Swiss 

Confederation on Social Security of July 18, 1979, shall be 

maintained. 

ANNOTATIONS AND COMMENTS 

occurring before the Agreement enters into force. 

Until 1973, Swiss law permitted U.S. nationals to obtain a refu

social security contributions if they had at least 1 year 

contributions but less than the 5 years required for benefit 

Under Article 29.4, neither the U.S. nor Switzerland will co

of Swiss coverage based on contributions that Switzerland has 

Article 29.5 provides that a decision to award or deny a c

either country rendered prior to the effective date of the Agre

not prevent a person from filing a new application for addition

that may be payable as a result of the Agreement. 

Article 29.6 guarantees that this Agreement's entry into forreduce the amount of benefits already payable at the time the 

becomes effective. 

Article 29.7 provides that the new Agreement will replace t

Agreement, its Protocol and the Supplementary Agreem

provision supersedes Article 25 of the current Agreement th

that agreement to remain in force and effect until one y

"denunciation" notification. 

Article 29.8 provides for the retention of any determination 

social security coverage and taxation or any right to a benefit m

the original Agreement. 

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1. 

2. 

3. 

PRINCIPAL AGREEMENT 

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Any claim to benefits made but not finally adjudicated at the 

date upon which this Agreement comes into force shall be 

adjudicated according to the provisions of the Agreement 

between the United States of America and the Swiss 

Confederation on Social Security of July 18, 1979, if this gives 

the claimant a more favorable result. 

AR'I1CLE30 

Entry into Force, Duration and Termination 

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

month following the month in which each Government shall have 

received from the other Government written notification that it 

has complied with all statutory and constitutional requirements 

for the entry into force of this Agreement. 

This Agreement shall remain in force and effect until the 

expiration of one calendar year following the year in which 

written notice of its termination is given by one of the 

Contracting States to the other Contracting State. 

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. 

ANNOTATIONS AND COMMENTS 

Article 29.9 stipulates that the original Agreement will als

adjudicating claims filed but not finally adjudicated whe

Agreement enters into force if this is more favorable to the cl

explained in connection with Part IV, the new Agreement 

substantive change in the original Agreement's rules conc

determination of U.S. benefit eligibility or amounts. A

therefore, has no significance with respect to U.S. benefits. 

Each country will follow its own constitutional procedures fo

of the new Agreement. In Switzerland, the Parliament will rev

in the United States, the President will transmit the AgreemCongress for a review period of 60 session days, as r

section 233 of the Act. Once each country has completed 

approval process, the two Governments will exchang

notification to that effect. The Agreement will enter into fo

first day of the third calendar month after the month in w

Governments have received the other Government's written no

Article 30.2 provides for the Agreement to remain in effec

expiration of one calendar year after the year in which 

countries provides notice oftermination. The new Agreement 

the word "termination" for "denunciation" but makes no 

change. 

Article 30.3 provides that in the event of termination of the Ag

person will retain benefit rights acqulred before terminatio

arrangements would determine the extent to which each cou

recognize benefit rights in the process of being acquired at 

termination-for example, periods of coverage that had not y

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PRINCIPAL AGREEMENT 

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IN WITNESS WHEREOF, the undersigned, being duly authorized 

thereto, have signed the present Agreement. DONE at Bern on December 3, 2012 in duplicate, in the English and 

French languages, both texts being equally authentic. 

FOR THE GOVERNMENT 

OF THE UNITED STATES 

OF AMERICA 

Donald S. Beyer, Jr. 

FOR THE SWISS 

FEDERAL COUNCIL 

Jiirg Brechbiihl 

ANNOTATIONS AND COMMENTS 

in fully insured status. 

The U.S. Ambassador to Switzerland and Liechtenstein, 

Beyer, Jr., and the Director of the Swiss Federal Sociallnsura

Jiirg Brechbiihl, signed the new Agreement on December 

Bern, Switzerland. 

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ADMINISTRATIVE ARRANGEMENT 

ADMINISTRATIVE ARRANGEMENT 

FOR THE IMPLEMENTATION OF THE AGREEMENT 

BETWEEN THE UNITED STATES OF AMERICA 

AND THE SWISS CONFEDERATION 

ON SOCIAL SECURITY 

In confonuity with Article 19 (a) of the Agreement on Social Security 

concluded on December 3,2012 between the United States of America and 

Switzerland, hereinafter referred to as "the Agreement", the following 

provisions have been agreed upon: 

CHAPTER! 

General Provisions 

Article 1 

Tenus used in this Administrative Arrangement shall have the same 

meaning as in the Agreement. 

Article 2 

1. Liaison agencies for the implementation of this Agreement shall be: 

(a) for the United States, the Social Security Administration; (b) for Switzerland, the Swiss Compensation Office and the 

Disability Insurance Office for insured people living 

abroad. 

ANNOTATIONS AND COMMENTS 

Article 1 provides that the tenus both the Agreement 

Administrative Arrangement use, whether the Agreement define

not, will have the same meaning as they have in the Agreement. 

Article 2.1 designates the liaison agencies in each country that 

primary responsibility for coordinating implementation and adm

of the coverage and benefit provisions of the Agreement. T

Security Administration is the designated liaison agency 

United States, and the Swiss Compensation Office and the 

Insurance Office for insured people living abroad are the c

liaison agencies for Switzerland. 

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2. 

1. 

2. 

ADMThiSTRATIVE ARRANGEMENT 

The Swiss Competent Authority or, with its consent, the Swiss liaison agency, and the United States liaison agency shall agree 

upon joint administrative measures and fonus necessary for the 

implementation of the Agreement and this Administrative 

Arrangement. 

CHAPTER 2 

Provisions Concerning Coverage 

Article 3 

Where the laws of one Contracting State are applicable in 

accordance with any of the provisions of Part III of the 

Agreement, the agency of that Contracting State, upon request of 

the employer or self employed person, shall issue a certificate 

stating that the 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. 

The certificate referred to in paragraph I shall be issued: 

in the United States: by the Social Security Administration; and 

in Switzerland: by the competent compensation fund of the 

Old-Age and Survivors Insurance. 

2 

ANNOTATIONS AND COMMENTS 

Article 2.2 authorizes and requires the liaison agencie

United States and Switzerland to agree upon those procedures 

that they must use jointly for the implementation of the Agree

Administrative Arrangement. Under Article 3.1, the agency of the country whose socia

coverage laws will continue to apply to a person in accordanc

various rules set forth in Part III of the Agreement will issue a 

to that effect when an employer or a self-employed person req

Employers and self-employed persons should request certifica

work begins in the other country, whenever possible. On prese

the appropriate agency of the other country, the certificate wil

proof of the exemption of the person from the coverage law

country. Retroactive recovery of U.S. contributions paid with 

services for which a coverage exemption applies shall be subj

time limitations for refunds of taxes in the Internal Revenue Cod

The agencies that Article 3 of the Administrative Arrangement 

will issue certificates. The Social Security Administration 

coverage certificates for the United States. The competent com

fund of the Swiss Old Age and Survivors Insurance program 

coverage certificates for Switzerland. 

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3. 

4. 

1. 

ADMINISTRATIVE ARRANGEMENT 

Requests for an extension of the period of detachment or an 

exception according to Article 12 of the Agreement shall be 

submitted to the Competent Authority of the Contracting State 

whose coverage is requested. 

The agency of a Contracting State which 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 liaison agency of the other Contracting State as needed by the 

agency of the other Contracting State. 

CHAPTER 3 

Provisions Concerning Benefits 

Article 4 

In cases where Article 24 of the Agreement applies, the liaison 

agency of the Contracting State which has received an application 

for benefits under its laws shall inform the liaison agency of the 

other Contracting State of this fact without delay, using forms 

established for this purpose. It shall also transmit documents and 

such other available information as may be necessary for the 

agency of the other Contracting State to establish the right of the 

applicant to benefits according to the provisions of Part IV of the 

Agreement. In the case of an application for disability benefits it 

shall, in particular, transmit all relevant medical evidence in its 

possession concerning the disability of the applicant. 

3 

ANNOTATIONS AND COMMENTS 

The Competent Authorities designated in Article 1 of the Agree

mutually determine extensions of temporary exemption pe

exceptions to the coverage rules as Article 12 of the Agreement 

Persons seeking extensions or exceptions will direct their reque

Competent Authority of the Contracting State in which t

coverage. 

Article 3.4 provides that the agency issuing a coverage certif

furnish a copy of the certificate or information from the certific

liaison agency in the other country when needed. 

Articles 4.1 and 4.2 outline the procedures the liaison agencies w

for the exchange of pertinent information, including medical inf

they need to process claims filed under the Agreement. The 

Swiss liaison agencies will agree on special application f

individuals who wish to file for benefits based on the Agreement 

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ADMINISTRATIVE ARRANGEMENT 

2. The liaison agency of a Contracting State which receives an 

application filed with an agency of the other Contracting State 

shall without delay provide the liaison agency of the other 

Contracting State with such evidence and other available 

information as may be required to complete action on the claim. 

3. The agency of the Contracting State with which an application for 

benefits has been filed shall verify the accuracy of the information 

pertaining to the applicant and the applicant's family members. 

The types of information to be verified shall be agreed upon by 

the liaison agencies. 

Article 5 

In the application of Article 18 of the Agreement, the Swiss liaison 

agency shall notify the United States liaison agency of the months in 

which a person made contributions during any year in which periods of 

coverage were completed under Swiss laws. A record of the total 

number of months of contributions made in specific calendar years shall 

be provided where the actual months of coverage are not known. 

4 

Al'lNOTATIONS AND COMMENTS 

Article 4.3 deals with the verification of claims information. 

and Swiss laws require verification of certain informa

individuals claiming benefits (e.g., age and family relations

worker) before either country can approve the claim. Article 4

that when a claimant files for benefits under the Agreem

country, the agency of that country will verify the relevant i

and inform the agency of the other country of its findings. 

agencies will agree upon the specific types of informatio

veritlcation. 

The purpose of this provision is to expedite the claims process b

the duplication of effort that would result if the agencies of bot

had (0 verify the same information. Although an agency may 

t1ndings of the other agency concerning the accuracy of info

may at its discretion request documentary evidence to sup

Endings. 

Article 5 provides that where totalization is necessary to 

person's entitlement to U.S. benefits in accordance with Articl

Agreement, the Swiss liaison agency will furnish the U.S. liaisorecord showing the person's total periods of coverage under 

system. This record will include the number of months of co

and the actual dates of such contributions for each calendar ye

Swiss records do not identify the actual months in which a p

contributions (which may occur for years prior to 1969), the Sw

agency will certify only the total months of contributions cred

person in each year. 

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1. 

2. 

ADMINISTRATIVE ARRANGEMENT 

CHAPTER 4 

Miscellaneous Provisions 

Article 6 

In accordance with measures to be agreed upon pursuant to 

Article 2 of this Administrative Agreement, 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 purpose of administering 

the Agreement or the laws specified in Article 2 (1) of the 

Agreement. 

For the purpose of facilitation of the implementation of the 

Agreement and this Administrative Arrangement, the liaison 

agencies may agree on measures for the provision and 

transmission of the electronic exchange of data. 

Article 7 

The liaison agencies of the two Contracting States shall exchange 

statistics on the number of certificates issued under Article 3 of this 

Administrative Arrangement and on the payments made to beneficiaries tmder the Agreement for each calendar year in a form to be agreed upon. 

The data shall include the number of beneficiaries and the total amount 

of benefits, by type of benefit. 

5 

ANNOTATIONS AND COMMENTS 

Article 6.1 provides that the agency of one country will, upon 

furnish claims-related information to the agency of the other c

accordance with agreed upon procedures. The agencies will ag

such procedures, which will be consistent with the governing s

both countries. 

Under Article 6.2, the liaison agencies of both countries may 

implement electronic data exchanges to facilitate implementati

Agreement and the Administrative Arrangement, provided th

agencies conduct such exchanges in accordance with the law

country governing the protection of privacy and confidentiality o

data. 

Article 7 provides for an exchange of statistics concerning the n

coverage certificates the agencies issue pursuant to Article 3

Administrative Arrangement and the payments the two countrie

beneficiaries under the Agreement. 

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1. 

2. 

3. 

4. 

ADMINISTRATIVE ARRANGEMENT 

Article 8 

Where administrative assistance is requested under Article 20 of the Agreement, expenses other than regular personnel and 

operating costs of the Competent Authorities and agencies 

providing the assistance shall be reimbursed, exccpt as may be 

agreed to by the Competent Authorities or liaison agencies of the 

Contracting States. 

Where the agency of a Contracting State requires that a claimant 

or beneficiary submit to a medical examination, such 

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

agency of the Contracting State in which the claimant or 

beneficiary resides, in accordance with the rules of the agency 

making the arrangements and at the expense of the agency which 

requests the examination. Upon request, the agency of either Contracting State shall furnish 

without expense to the liaison agency of the other Contracting 

State any medical information and documentation in its 

possession relevant to the disability of the claimant or 

beneficiary. 

Amounts owed under paragraphs 1 and 2 shall be reimbursed 

upon presentation of a detailed statement of expenses. 

6 

ANNOTATIONS AND COMMENTS 

In accordance with Article 20 of the Agreement, the C

Authorities and agencies of the two countries will provide each 

such administrative assistance as may be necessary to impl

provisions of the Agreement. Under Article 8.1, the requestin

will pay expenses the other agency incurs in responding to re

administrative assistance which require it to go outside 

organization--for example, to hire interpreters, conduct spe

investigations, or arrange medical examinations--unless the C

Authorities or liaison agencies agree on a different arrangement

countries will not reimburse expenses for regular personnel and costs. 

Article 8.2 provides that where a medical examination is ne

establish eligibility for or continuing entitlement to a country

that are payable under the Agreement, and the claimant or benefi

the other country, the agency of the other country will, upo

arrange for the examination at the expense of the agency requ

examination. 

When the agency in one country requests medical information 

agency in the other country, the latter agency will furnish to 

country's liaison agency any pertinent medical records it h

possession free of charge. 

In order to receive reimbursement for the cost of administrative 

the agency which provides the assistance must furnish the 

agency with a detailed statement of expenses. 

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ADMINISTRATIVE ARRANGEMENT 

Article 9 

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 Bern on December 3, 2012, in duplicate in the English and 

French languages, the two texts being equally authentic. 

For the Competent Authority 

of the United States of America: 

Donald S. Beyer, Jr. 

For the Competent Authority 

of Switzerland: 

Jiirg Brechbiihl 

7 

At"'INOTATIONS AND COMMENTS 

The Administrative Arrangement will enter into force on the sam

the Agreement and will remain in effect for the same perio

Agreement. 

The U.S. Ambassador to Switzerland and Liechtenstein, Donald 

Jr., and the Director of the Swiss Federal Social Insurance Off

Brechbiihl, signed the new Agreement on December 3, 2012 

Switzerland. 
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INTRODUCTION 

REPORT TO CONGRESS 

TO ACCOMPANY THE REVISED AGREE.MENT 

ON SOCIAL SECURITY 

BETWEEN THE UNITED STATES OF AMERlCA 

AND THE SWISS CONFEDERATION 

The U.s. Ambassador to Switzerland, '!long with his Swiss counterpart, signed the original 

agreement on July 18, 1979·, and the agreement entered into force on November 1, 1980. A 

subsequent supplementllry agreement between the United States and Switzerland, signed on 

June 1, 1988 and effective October 1, 1989, amended the original agreement We now need to 

make additional modifications, authorizad under Section 233 of the Social Security Act (Act). 

U.S.-Swiss Social Security Agreement 

The social security agreement between the United States and Switzerland is one of 24 ·bilateral 

agreements the United States has concluded with foreign countries to provide limited 

coordination of the U.s. Old-age, Survivors, and Disability Insurance program with comparable 

programs of other countries. Like other U.S. social security agreements, the agreement with 

Switzerland has two main purposes. First, it eliminates dual social security coverage and 

taxation, i.e., the situation that occurs when a worker from one country works in the other 

country and isrequirad to pay social security taxes to both countries on the same earniogs (the 

agreement includes rules that assign a worker's soei'll security coverage and tax liability to just 

one eountry). Second, the agreement helps prevent gaps in social security benefit protection for 

workers who divide their careers between the two countries. Under the agreement, workers and 

their family memhers can qualiJY for partial U.S. or Swiss benefits based on "totalized" (Le., 

combined) work credits from both countl'ies. 

Revised Agreement 

The revised agreement~ which representatives of the U.S. and Swiss Governm~nts signed on 

December 3,2012, updates and clarifies several of the existing agreement's provisions. The 

amendments are necessary to account for changes in U.S. and Swiss law since the original and 

subseqoent supplementary agreements entered into force. The revised agreement accomplishes 

the following: 

• Changes the way each side defines terms in the text of the agreement; 

• Contains revised equality of treatment and benefits portability language that meets with 

current U.S. and Swiss Jaws and practices that the present agreement does not fully 

re.fleet; 
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• Expands personal seope and coverage arrangements language to correlate with 

contemporary U.S. and Swiss rules and practices; 

Page 2 

• Adds a provision that the Swiss Government requested whereby U.S. nationals must now 

follow the same recently initiated minimum contribution period rules that Swiss nationals 

must meet to qualilY for certain Swiss ordinary disability benefits; 

• Provides language that allows, under certain conditions less restrictive than those ofthe 

existing agreement, U.S. nationals to qualilY for Swiss flat-rate, needs-based benefits; 

• Expands and updates the existing agreement's proteetions with respect to personally 

identifiable inrormation; 

• Provides important clarification on how the two sides treat documents and appeals they 

handle under the terms of the agreement. 

The original U.S.-Swiss social security agreement consists of two separate instruments: a 

principal agreement and a related administrative agreement. The revised agreement, which the 

President is now transmitting to Congress for review in accordance with section 233(e) of the 

Act, likewise consists of two instruments: 

(1) a revised agreement amending the original U.S.-Swiss principal agreement; and 

(2) a revised administrative agreement amending the original administrative agreement 

fur implementation of the principe] agreement. 

Accompanying this report is a paragraph-by-paragraph explanation of the revised agreement and 

administrative agreement (Annex A) with substantive revisions shown in bold type. Also 

included is the estimate required by section 233(e)(I) of the Act on the efteet of the revised 

agreement on the income and expenditures of the U.S. Social Security program and the number 

of indhiduals affected by the agreement (Annex B). 
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Page 3 

MAIN PROVISIONS OF THE REVISED AGREEMIiNT 

UpdatedT~s 

The revised agreement updates a number of terms that have become anachronistic due to changes 

in the laws in both countries. For example, the revised agreement designates the Commissioner 

of Social Security as the CQlUpetent Authority under the agreement, whereas the original 

agreement designated the Secretary of Health, Education, and Welfare as the Competent 

Authority. The Department of Health and Human Services replaced the Department of Health. 

Education, and Welfare on May 4, 1980, and the Social Security Administration subsequently 

became an independent agency on March 31, 1995. 

Further, the revised agreement adds the Northern Mariana Islands (NMI) to the definition of the 

territory of the United States under the agreement. Under the covenant establishing political 

union between the United States and the NMl, the U.S. Social Se<>wity system first applied to the 

NMI on January I, 1987. 

Swiss Disability Benefits 

A recent change to Swiss law regarding disability benefits proved problematic under the existing 

U.s.-Swiss social security agreement. One of the consequences of the benefits provisions in the 

existing agreement is to allow U.S. nationals to receive an ordinary disability benefit with as 

little as one year of coverage in S"'itzerland. Previously, this had also been the case for Swiss 

nationals. However, the new Swiss legislation required a mandatory three years of coverage 

under the Swiss social security system in order to qualifY for the ordinary disability benefit. 

Aqcordingly, under the existing agreement, U.S. nationals can receive the ordinary disability 

benefit on more favorable terms than Swiss nationals; the revised agreement provides equal 

treatment for U.S. and Swiss nationals. 

The revised agreement also provides that persons may Use U.S. Social Security coverage to meet 

the requirements necessary in order to qualify for a Swiss ordinary disability benefit. 

Additionally, physical presence, domicile, or residence in Switzerland may satisfY certain 

contribution requirements U.S. nationals must meet to qualify for related Swiss benefits. In 

some situations, U.s. nationals who qualifY tor S"'1ss disability benefits under the revised 

agreement may receive lump sums instead. It is the case, for example, if they do not reside in 

Switzerland or plan to leave permanently. 

Safeguards for Pwsonally Identifiable Information 

The revised U.S.-S\'/iss social secwity agreement also includes more substantial provisions on 

the proper USe, transmission, and receipt ofpersonally identifiable infurmation (or personal data) 

under the agreement. Article 10 of the original administrative agreement included a single 

paragraph on personal data. Article 21 ofthe'tevise<i agreement includes 6 paragraphs dllllliling 

how each Cl)untry will protect personal data under the revised agreement. These expanded 

provisions not aniy provide greater saregul!l"ds against the unauthorized access, disclosure, or use 
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Page 4 

of personal data under the agreement, but also provide far greater clarity a.< to the remedial steps 

available in the event that personal data are incorrect or unnecessary for the purposes of 

implementing the agreement. 
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~{}~£~~ 

"'/0'" 

\YE-\R5~ "Jtv!rrt--~ 

SOCIAL SECURITY 

MEMORANDUM 

Date: December 22, 2010 

To: Stephen C. Goss, Chief Acturuy 

from: Chris Clmpl.in, Acturuy 

Nettie Barrick. Actuary 

Offica of the Chief Actuary 

Refer To: TCC 

Subject: Estimated Effects of n Potential Revision of the Totafization Agreement betw"een S\",itzerland 

and the United States-INFORMATION 

Totalization agreements between the Vnlt.ed S1:ltes and oilier countries are designed to eliminate 

dual coverage and lnxation of the same work ~nd \t) help prevent gaps in benefit protection for 

those who have worked in each COlltl1ty. The proposed revised agreement between the United 

States <\I1d S,vitzeriand updates and clarifies provisions in the exii;(ing ~greement. The revisions 

take into aecounl changes in V.S, and S",;ss law that have occurred since the original and 

subsequent supplementary agreement were implemented. This new agreement ineludes reatures 

common to most of the other 23 U.s. totalization agreements, such as equality of treatment and 

benefit portability language. Protection of personally identifiable infonnanon is also addressed in 

the new agreement. Certain revisions merely codity current practice. 

Switzerland requested the original agreement he amended. in part, to reflect n change in the 

requirements fur Swiss ordinary disability benefits. At the lime the original agreement was 

adopted, both Swiss and U,S, nationals needed only one year afS,,;s. coverage to be eligible for 

S\\iss ordinary disability benefits. Since that time, Swiss req.uirement.'I) have changed so that three 

years of em'"mge are needed by Swiss nationals, Under the revised agreement, U,S, nationals 

will also need !htce yeats of coverage. However, the new agreement prowdes that persons may 

usc U.S. Social Security caverage to satisfy up to two years of this requirement. 

Additionally, the revised agreement slightly reln.~es the residence requirements for V.S. 

nationals to tcceive SWIss rehabilitation benefits and Swiss fiaHll.te needs-based benefits. In 

particular~ with respect to the former7 pbysical presence, domicile or residence in Switzerland 

will satisfy the requirement. Another provision relates to whether Swiss ordinary benefit 

p.ayments are paid as an annuity or. lump'sum for cenai.n U.s. I11itionais wbo qualify for Swiss 

ordinary disability benefits under the new agreement. Each ufthese provisions will likely have 

only a small effect on Swiss benefit payment,. 

The revision of the agreement is estimated to result in ti net cost to each of the U.S. and Swiss 

social security systems of less than $500,000 each yc." through fiscal yc .. r 2019. The IOtal net 
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cost 1llrolmh fiscal year 2019 i$ estimlIted to be le$1ben $500,00\). The estimated effect on the 

Iong.rnnge OASDI 8C\II8liai balance is negligi~ !bet i~. Ie$Iben 0.005 percent of payroll. 

Chris Chaplain 

Nettie Barrick 

o