
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC433]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 7--SOCIAL SECURITY
 
  SUBCHAPTER II--FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE 
                                BENEFITS
 
Sec. 433. International agreements


(a) Purpose of agreement

    The President is authorized (subject to the succeeding provisions of 
this section) to enter into agreements establishing totalization 
arrangements between the social security system established by this 
subchapter and the social security system of any foreign country, for 
the purposes of establishing entitlement to and the amount of old-age, 
survivors, disability, or derivative benefits based on a combination of 
an individual's periods of coverage under the social security system 
established by this subchapter and the social security system of such 
foreign country.

(b) Definitions

    For the purposes of this section--
        (1) the term ``social security system'' means, with respect to a 
    foreign country, a social insurance or pension system which is of 
    general application in the country and under which periodic 
    benefits, or the actuarial equivalent thereof, are paid on account 
    of old age, death, or disability; and
        (2) the term ``period of coverage'' means a period of payment of 
    contributions or a period of earnings based on wages for employment 
    or on self-employment income, or any similar period recognized as 
    equivalent thereto under this subchapter or under the social 
    security system of a country which is a party to an agreement 
    entered into under this section.

(c) Crediting periods of coverage; conditions of payment of benefits

    (1) Any agreement establishing a totalization arrangement pursuant 
to this section shall provide--
        (A) that in the case of an individual who has at least 6 
    quarters of coverage as defined in section 413 of this title and 
    periods of coverage under the social security system of a foreign 
    country which is a party to such agreement, periods of coverage of 
    such individual under such social security system of such foreign 
    country may be combined with periods of coverage under this 
    subchapter and otherwise considered for the purposes of establishing 
    entitlement to and the amount of old-age, survivors, and disability 
    insurance benefits under this subchapter;
        (B)(i) that employment or self-employment, or any service which 
    is recognized as equivalent to employment or self-employment under 
    this subchapter or the social security system of a foreign country 
    which is a party to such agreement, shall, on or after the effective 
    date of such agreement, result in a period of coverage under the 
    system established under this subchapter or under the system 
    established under the laws of such foreign country, but not under 
    both, and (ii) the methods and conditions for determining under 
    which system employment, self-employment, or other service shall 
    result in a period of coverage; and
        (C) that where an individual's periods of coverage are combined, 
    the benefit amount payable under this subchapter shall be based on 
    the proportion of such individual's periods of coverage which was 
    completed under this subchapter.

    (2) Any such agreement may provide that an individual who is 
entitled to cash benefits under this subchapter shall, notwithstanding 
the provisions of section 402(t) of this title, receive such benefits 
while he resides in a foreign country which is a party to such 
agreement.
    (3) Section 426 of this title shall not apply in the case of any 
individual to whom it would not be applicable but for this section or 
any agreement or regulation under this section.
    (4) Any such agreement may contain other provisions which are not 
inconsistent with the other provisions of this subchapter and which the 
President deems appropriate to carry out the purposes of this section.

(d) Regulations

    The Commissioner of Social Security shall make rules and regulations 
and establish procedures which are reasonable and necessary to implement 
and administer any agreement which has been entered into in accordance 
with this section.

(e) Reports to Congress; effective date of agreements

    (1) Any agreement to establish a totalization arrangement entered 
into pursuant to this section shall be transmitted by the President to 
the Congress together with a report on the estimated number of 
individuals who will be affected by the agreement and the effect of the 
agreement on the estimated income and expenditures of the programs 
established by this chapter.
    (2) Such an agreement shall become effective on any date, provided 
in the agreement, which occurs after the expiration of the period 
(following the date on which the agreement is transmitted in accordance 
with paragraph (1)) during which at least one House of the Congress has 
been in session on each of 60 days; except that such agreement shall not 
become effective if, during such period, either House of the Congress 
adopts a resolution of disapproval of the agreement.

(Aug. 14, 1935, ch. 531, title II, Sec. 233, as added Pub. L. 95-216, 
title III, Sec. 317(a), Dec. 20, 1977, 91 Stat. 1538; amended Pub. L. 
97-35, title XXII, Sec. 2201(b)(12), Aug. 13, 1981, 95 Stat. 831; Pub. 
L. 98-21, title III, Sec. 326(a), Apr. 20, 1983, 97 Stat. 126; Pub. L. 
98-369, div. B, title VI, Sec. 2663(j)(3)(A)(v), July 18, 1984, 98 Stat. 
1170; Pub. L. 103-296, title I, Sec. 107(a)(4), Aug. 15, 1994, 108 Stat. 
1478.)


                               Amendments

    1994--Subsec. (d). Pub. L. 103-296 substituted ``Commissioner of 
Social Security'' for ``Secretary''.
    1984--Subsec. (d). Pub. L. 98-369 struck out ``of Health, Education, 
and Welfare'' after ``Secretary''.
    1983--Subsec. (e)(2). Pub. L. 98-21 substituted ``during which at 
least one House of the Congress has been in session on each of 60 days'' 
for ``during which each House of the Congress has been in session on 
each of 90 days''.
    1981--Subsec. (c)(2). Pub. L. 97-35 struck out provision permitting 
the agreement to provide that if the benefit paid by the United States 
to an individual who legally resides in the United States when added to 
the benefit paid by the foreign country is less than the benefit amount 
payable to such individual based on the first figure in, or deemed to be 
in, column IV of the table in section 415(a) of this title in the case 
of an individual becoming eligible before Jan. 1, 1979, or based on a 
primary insurance amount determined under section 415(a)(1)(C)(i)(I) of 
this title in the case of an individual becoming eligible for such 
benefit on or after such date, the benefit paid by the United States be 
increased so that the two benefits equal the benefit amount that would 
be payable.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-296 effective Mar. 31, 1995, see section 
110(a) of Pub. L. 103-296, set out as a note under section 401 of this 
title.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-369 effective July 18, 1984, but not to be 
construed as changing or affecting any right, liability, status, or 
interpretation which existed (under the provisions of law involved) 
before that date, see section 2664(b) of Pub. L. 98-369, set out as a 
note under section 401 of this title.


                    Effective Date of 1983 Amendment

    Section 326(b) of Pub. L. 98-21 provided that: ``The amendment made 
by subsection (a) [amending this section] shall be effective on the date 
of the enactment of this Act [Apr. 20, 1983].''


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-35 applicable with respect to benefits for 
months after December 1981, with certain exceptions, see section 
2(j)(2)-(4) of Pub. L. 97-123, set out as a note under section 415 of 
this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 402, 410, 411, 415 of this 
title; title 8 section 1611; title 26 sections 1401, 1402, 3101, 3111, 
3121.
