SSR 83-8: TITLE II: ALIEN NONPAYMENT PROVISIONS -- EXCEPTION BASED ON CITIZENSHIP IN FOREIGN COUNTRY WITH A SOCIAL INSURANCE SYSTEM

(PPS-91)

SSR 83-8

PURPOSE: To state the Social Security Administration's position

that, in order to qualify under section 202(t)(2) of the Social Security

Act for an exception to the alien nonpayment provision of section

202(t)(1), a person must be a citizen of a foreign country which has a

social insurance or pension system which pays benefits to any qualified

U.S. citizen who is outside of that country, regardless of when U.S.

citizenship was attained.

CITATIONS (AUTHORITY): Section 202(t)(2)(B) of the Social Security

Act; Regulations No. 4, section 404.463(a)(6).

PERTINENT HISTORY: With certain exceptions, section 202(t)

prohibits the payment of social Security benefits to alien beneficiaries

while they remain outside the U.S. if they have been outside the U.S. for

more than six months. Section 202(t)(2) provides for payment to an alien

outside the U.S. if the individual is a citizen of a country which has a

social insurance or pension system of general application which may pay

periodic benefits or their actuarial equivalent on account of old-age,

retirement or death to qualified U.S. citizens who are outside of that

country. Implementing regulations require that the foreign country's

system must pay these benefits to such U.S. citizens without restriction.

See Regulations No. 4, section 404.463(a)(6),m 20 C.F.R. 404.463(a)(6).

The Social Security Administration (SSA) has consistently interpreted

section 202(t)(2)(B) to require that the foreign country's social

insurance system must pay benefits to any qualified U.S. citizen, even if

he or she was not a U.S. citizen when working under that country's

system.

S. citizens without restriction.

See Regulations No. 4, section 404.463(a)(6),m 20 C.F.R. 404.463(a)(6).

The Social Security Administration (SSA) has consistently interpreted

section 202(t)(2)(B) to require that the foreign country's social

insurance system must pay benefits to any qualified U.S. citizen, even if

he or she was not a U.S. citizen when working under that country's

system.

The statute does not specifically state that the foreign country's system

must pay persons who became U.S. citizens after they ceased working under

that country's system, but the statutory language is broad enough to allow

this interpretation. Nothing in the relevant legislative history

specifically addresses this issue. However, the Conference Report on the

bill which enacted section 202(t)(2) indicates that the foreign country's

system would not satisfy that provision if it conditions payment of

benefits to U.S. citizens on presence in that foreign country, or if it

conditions benefits in terms which have the same effect as if it required

such presence. The interpretation of section 202(t)(2)(B) contained herein

follows this expression of congressional intent.

If a foreign country's social insurance or pension system will not pay

U.S. citizens outside that country's borders unless they were U.S.

citizens when they worked under that system, the foreign system would

exclude from payment all naturalized U.S. citizens who are otherwise

eligible for payment and who were citizens of that country but emigrated

and remain outside of its borders. This group would include the vast

majority of naturalized U.S. citizens from the country. None of those

people would ever receive payments from that country's system, unless they

return to reside there. Payment of title II benefits outside the U.S. to a

citizen of a foreign country is not conditioned on the wage earner's being

a citizen of that country while engaged in work covered by the U.S. Social

Security system.

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majority of naturalized U.S. citizens from the country. None of those

people would ever receive payments from that country's system, unless they

return to reside there. Payment of title II benefits outside the U.S. to a

citizen of a foreign country is not conditioned on the wage earner's being

a citizen of that country while engaged in work covered by the U.S. Social

Security system.

Bulgaria's refusal to pay Bulganian social insurance benefits to U.S.

citizens, who were not U.S. citizens while working under that system and

reside outside Bulgaria, focussed attention on the need for a clear public

statement of SSA's interpretation of section 202(t)(2)(B) of the Social

Security Act. A determination, effective in 1971, found that Bulgaria's

system fulfilled the requirements set forth in section 202(t)(2)(B); i.e.,

SSA thought that benefits were payable under that system to U.S. citizens

who live outside Bulgaria. As a result, U.S. Social Security benefits were

paid to Bulgarian citizens outside the U.S.

However, the Government of Bulgaria recently indicated that only those

persons who were U.S. citizens at the time of their employment under the

Bulgarian system may receive Bulgarian social insurance benefits while

outside that country. This interpretation of Bulgarian law, coupled with

restrictions placed on the employment of U.S., citizens in Bulgaria, led

SSA to conclude that it is improbable that the Bulgarian system would ever

pay pensions to U.S. citizens outside Bulgaria. In April 1982, benefit

payments to Bulganian citizens living outside the U.S. were suspended due

to a revised finding that the Bulgarian system was not in compliance with

the provisions of section 202(t)(2)(B).

POLICY STATEMENT: In order for the social insurance system of a

foreign country to meet the provisions of section 202(t)(2)(B), that

system must pay benefits to any qualified U.S. citizen who is outside of

that country, regardless of when U.S. citizenship was attained.

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to a revised finding that the Bulgarian system was not in compliance with

the provisions of section 202(t)(2)(B).

POLICY STATEMENT: In order for the social insurance system of a

foreign country to meet the provisions of section 202(t)(2)(B), that

system must pay benefits to any qualified U.S. citizen who is outside of

that country, regardless of when U.S. citizenship was attained.

EFFECTIVE DATE: January 1, 1957, the effective date of section

202(t)(2) of the Social Security Act.

CROSS-REFERENCES: Program Operations Manual System section RS

02610.010G.