Totalization Agreements

[Title 20 CFR T]
[Code of Federal Regulations (annual edition) - April 1, 1996 Edition]
[Title 20 - EMPLOYEES' BENEFITS]
[Chapter III - SOCIAL SECURITY ADMINISTRATION]
[Part 404 - FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE (1950- )]
[Subpart T - Totalization Agreements]
[From the U.S. Government Publishing Office]

20
EMPLOYEES' BENEFITS
2
1996-04-01
1996-04-01
false
Totalization Agreements
T
Subpart T

EMPLOYEES' BENEFITS
SOCIAL SECURITY ADMINISTRATION
FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE (1950- )

Subpart T--Totalization Agreements

Sec. 404.1901 Introduction.

(a) Under section 233 of the Social Security Act, the President may
enter into an agreement establishing a totalization arrangement between
the social security system of the United States and the social security
system of a foreign country. An agreement permits entitlement to and the
amount of old-age, survivors, disability, or derivative benefits to be
based on a combination of a person's periods of coverage under the
social security system of the United States and the social security
system of the foreign country. An agreement also provides for the
precluding of dual coverage and dual social security taxation for work
covered under both systems. An agreement may provide that the provisions
of the social security system of each country will apply equally to the
nationals of both countries (regardless of where they reside). For this
purpose, refugees, stateless persons, and other nonnationals who derive
benefit rights from nationals, refugees, or stateless persons may be
treated as nationals if they reside within one of the countries.
(b) The regulations in this subpart provide definitions and
principles for the negotiation and administration of totalization
agreements. Where necessary to accomplish the purposes of totalization,
we will apply these definitions and principles, as appropriate and
within the limits of the law, to accommodate the widely diverse
characteristics of foreign social security systems.

Sec. 404.1902 Definitions.

For purposes of this subpart--
Act means the Social Security Act (42 U.S.C. 301 et seq.).
Agency means the agency responsible for the specific administration
of a social security system including responsibility for implementing an
agreement; the Social Security Administration (SSA) is the agency in the
U.S.
Agreement means the agreement negotiated to provide coordination
between the social security systems of the countries party to the
agreement.

[[Page 493]]

The term agreement includes any administrative agreements concluded for
purposes of administering the agreement.
Competent authority means the official with overall responsibility
for administration of a country's social security system including
applicable laws and international social security agreements; the
Secretary of HEW is the competent authority in the U.S.
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 under the social
security system of the U.S. or under the social security system of the
foreign country which is a party to an agreement.
Residence or ordinarily resides, when used in agreements, has the
following meaning for the U.S. Residence or ordinarily resides in a
country means that a person has established a home in that country
intending to remain there permanently or for an indefinite period of
time. Generally, a person will be considered to have established a home
in a country if that person assumes certain economic burdens, such as
the purchase of a dwelling or establishment of a business, and
participates in the social and cultural activities of the community. If
residence in a country is established, it may continue even though the
person is temporarily absent from that country. Generally, an absence of
six months or less will be considered temporary. If an absence is for
more than six months, residence in the country will generally be
considered to continue only if there is sufficient evidence to establish
that the person intends to maintain the residence. Sufficient evidence
would include the maintenance of a home or apartment in that country,
the departure from the country with a reentry permit, or similar acts.
The existence of business or family associations sufficient to warrant
the person's return would also be considered.
Social security system means a social insurance or pension system
which is of general application and which provides for paying periodic
benefits, or the actuarial equivalent, because of old-age, death, or
disability.

Sec. 404.1903 Negotiating totalization agreements.

An agreement shall be negotiated with the national government of the
foreign country for the entire country. However, agreements may only be
negotiated with foreign countries that have a social security system of
general application in effect. The system shall be considered to be in
effect if it is collecting social security taxes or paying social
security benefits.

Sec. 404.1904 Effective date of a totalization agreement.

Section 233 of the Social Security Act provides that a totalization
agreement shall become effective on any date provided in the agreement
if--
(a) The date occurs after the expiration of a period during which at
least one House of Congress has been in session on each of 60 days
following the date on which the agreement is transmitted to Congress by
the President; and
(b) Neither House of Congress adopts a resolution of disapproval of
the agreement within the 60-day period described in paragraph (a) of
this section.

[49 FR 29775, July 24, 1984]

Sec. 404.1905 Termination of agreements.

Each agreement shall contain provisions for its possible
termination. If an agreement is terminated, entitlement to benefits and
coverage acquired by an individual before termination shall be retained.
The agreement shall provide for notification of termination to the other
party and the effective date of termination.

Benefit Provisions

Sec. 404.1908 Crediting foreign periods of coverage.

(a) General. To have foreign periods of coverage combined with U.S.
periods of coverage for purposes of determining entitlement to and the
amount of benefits payable under title II, an individual must have at
least 6 quarters of coverage, as defined in section 213 of the Social
Security Act, under the U.S. system. As a rule, SSA will accept foreign
coverage information, as certified by the foreign country's agency,
unless otherwise specified by the agreement.

[[Page 494]]

No credit will be given, however, for periods of coverage acquired
before January 1, 1937.
(b) For quarters of coverage purposes. (1) Generally, a quarter of
coverage (QC) will be credited for every 3 months (or equivalent
period), or remaining fraction of 3 months, of coverage in a reporting
period certified to SSA by the other country's agency. A reporting
period used by a foreign country may be one calendar year or some other
period of time. QCs based on foreign periods of coverage may be credited
as QCs only to calender quarters not already QCs under title II. The QCs
will be assigned chronologically beginning with the first calendar
quarter (not already a QC under title II) within the reporting period
and continuing until all the QCs are assigned, or the reporting period
ends. Example: Country XYZ, which has an annual reporting period,
certifies to SSA that a worker has 8 months of coverage in 1975, from
January 1 to August 25. The worker has no QCs under title II in that
year. Since 8 months divided by 3 months equals 2 QCs with a remainder
of 2 months, the U.S. will credit the worker with 3 QCs. The QCs will be
credited to the first 3 calendar quarters in 1975.
(2) If an individual fails to meet the requirements for currently
insured status or the insured status needed for establishing a period of
disability solely because of the assignment of QCs based on foreign
coverage to calendar quarters chronologically, the QCs based on foreign
coverage may be assigned to different calendar quarters within the
beginning and ending dates of the reporting period certified by the
foreign country, but only as permitted under paragraph (b)(1) of this
section.

Sec. 404.1910 Person qualifies under more than one totalization agreement.

(a) An agreement may not provide for combining periods of coverage
under more than two social security systems.
(b) If a person qualifies under more than one agreement, the person
will receive benefits from the U.S. only under the agreement affording
the most favorable treatment.
(c) In the absence of evidence to the contrary, the agreement that
affords the most favorable treatment for purposes of paragraph (b) of
this section will be determined as follows:
(1) If benefit amounts are the same under all such agreements,
benefits will be paid only under the agreement which affords the
earliest month of entitlement.
(2) If benefit amounts and the month of entitlement are the same
under all such agreements, benefits will be paid only under the
agreement under which all information necessary to pay such benefits is
first available.
(3) If benefit amounts under all such agreements are not the same,
benefits will be paid only under the agreement under which the highest
benefit is payable. However, benefits may be paid under an agreement
under which a lower benefit is payable for months prior to the month of
first entitlement to such higher benefit.

[44 FR 42964, July 23, 1979, as amended at 49 FR 29775, July 24, 1984]

Sec. 404.1911 Effects of a totalization agreement on entitlement to hospital insurance benefits.

A person may not become entitled to hospital insurance benefits
under section 226 or section 226A of the Act by combining the person's
periods of coverage under the social security system of the United
States with the person's periods of coverage under the social security
system of the foreign country. Entitlement to hospital insurance
benefits is not precluded if the person otherwise meets the
requirements.

Coverage Provisions

Sec. 404.1913 Precluding dual coverage.

(a) General. Employment or self-employment or services recognized as
equivalent under the Act or the social security system of the foreign
country shall, on or after the effective date of the agreement, result
in a period of coverage under the U.S. system or under the foreign
system, but not under both. Methods shall be set forth in the agreement
for determining under which system the employment, self-employment, or
other service shall result in a period of coverage.
(b) Principles for precluding dual coverage. (1) An agreement
precludes dual

[[Page 495]]

coverage by assigning responsibility for coverage to the U.S. or a
foreign country. An agreement may modify the coverage provisions of
title II of the Act to accomplish this purpose. Where an agreement
assigns coverage to the foreign country, it may exempt from coverage
services otherwise covered by the Act. Where an agreement assigns
coverage to the U.S., it may extend coverage to services not otherwise
covered by the Act but only for taxable years beginning on or after
April 20, 1983.
(2) If the work would otherwise be covered by both countries, an
agreement will exempt it from coverage by one of the countries.
(3) Generally, an agreement will provide that a worker will be
covered by the country in which he or she is employed and will be exempt
from coverage by the other country.

Example: A U.S. national employed in XYZ country by an employer
located in the United States will be covered by XYZ country and exempt
from U.S. coverage.

(4) An agreement may provide exceptions to the principle stated in
paragraph (b)(3) of this section so that a worker will be covered by the
country to which he or she has the greater attachment.

Example: A U.S. national sent by his employer located in the United
States to work temporarily for that employer in XYZ country will be
covered by the United States and will be exempt from coverage by XYZ
country.

(5) Generally, if a national of either country resides in one
country and has self employment income that is covered by both
countries, an agreement will provide that the person will be covered by
the country in which he or she resides and will be exempt from coverage
by the other country.
(6) Agreements may provide for variations from the general
principles for precluding dual coverage to avoid inequitable or
anomalous coverage situations for certain workers. However, in all cases
coverage must be provided by one of the countries.
[44 FR 42964, July 23, 1979, as amended at 50 FR 36575, Sept. 9, 1985]

Sec. 404.1914 Certificate of coverage.

Under some agreements, proof of coverage under one social security
system may be required before the individual may be exempt from coverage
under the other system. Requests for certificates of coverage under the
U.S. system may be submitted by the employer, employee, or self-employed
individual to SSA.

Sec. 404.1915 Payment of contributions.

On or after the effective date of the agreement, to the extent that
employment or self-employment (or service recognized as equivalent)
under the U.S. social security system or foreign system is covered under
the agreement, the agreement shall provide that the work or equivalent
service be subject to payment of contributions or taxes under only one
system (see sections 1401(c), 3101(c), and 3111(c) of the Internal
Revenue Code of 1954). The system under which contributions or taxes are
to be paid is the system under which there is coverage pursuant to the
agreement.

Computation Provisions

Sec. 404.1918 How benefits are computed.

(a) General. Unless otherwise provided in an agreement, benefits
will be computed in accordance with this section. Benefits payable under
an agreement are based on a pro rata primary insurance amount (PIA),
which we determine as follows:
(1) We establish a theoretical earnings record for a worker which
attributes to all computation base years (see Secs. 404.211(b) and
404.241(c)) the same relative earnings position (REP) as he or she has
in the years of his or her actual U.S. covered work. As explained in
paragraph (b)(3) of this section, the REP is derived by determining the
ratio of the worker's actual U.S. covered earnings in each year to the
average of the total U.S. covered wages of all workers for that year,
and then averaging the ratios for all such years. This average is the
REP and is expressed as a percentage.
(2) We compute a theoretical PIA as prescribed in Sec. 404.1918(c)
based on the theoretical earnings record and the provisions of subpart C
of this part.
(3) We multiply the theoretical PIA by a fraction equal to the
number of quarters of coverage (QC's) which the

[[Page 496]]

worker completed under the U.S. Social Security system over the number
of calendar quarters in the worker's coverage lifetime (see paragraph
(d)(2) of this section). See Sec. 404.140 for the definition of QC.
(4) If the pro rata PIA is higher than the PIA which would be
computed if the worker were insured under the U.S. system without
totalization, the pro rata PIA will be reduced to the later PIA.
(b) Establishing a theoretical earnings record. (1) To establish a
worker's theoretical earnings record, we divide his or her U.S. earnings
in each year credited with at least one U.S. QC by the average of the
total wages of all workers for that year and express the quotient as a
percentage. For the years 1937 through 1950, the average of the total
wages is as follows:

------------------------------------------------------------------------
Average of
the total
Year wages of
all workers
------------------------------------------------------------------------
1937....................................................... $1,137.96
1938....................................................... 1,053.24
1939....................................................... 1,142.36
1940....................................................... 1,195.00
1941....................................................... 1,276.04
1942....................................................... 1,454.28
1943....................................................... 1,713.52
1944....................................................... 1,936.32
1945....................................................... 2,021.40
1946....................................................... 1,891.76
1947....................................................... 2,175.32
1948....................................................... 2,361.64
1949....................................................... 2,483.20
1950....................................................... 2,543.96
------------------------------------------------------------------------

(2) For years after 1950, the average of the total wages is as
prescribed in Sec. 404.211(c). If a worker has earnings in the year
preceding the year of eligibility or death, or in a later year, we may
not have been able to establish the average of the total wages of all
workers for that year. Therefore, we will divide a worker's actual
earnings in these years by the average of the total wages for the latest
year for which that information is available. Average wage information
is considered available on January 1 of the year following the year in
which it is published in the Federal Register.
(3) The percentages for all years of actual covered earnings are
then averaged to give the worker's REP for the entire period of work in
the U.S. In determining the percentages for all years of covered
earnings and the REP, we make adjustments as necessary to take account
of the fact that the covered earnings for some years may have involved
less than four U.S. QC's. The actual earnings that are taken into
account in determining the percentage for any year with 1, 2, or 3 QC's
cannot exceed \1/4\, \1/2\, or \3/4\, respectively, of the maximum
creditable earnings for that year. When we determine the REP from the
percentages for all years, we add the percentages for all years, divide
this sum by the total number of QC's credited to the worker, and
multiply this quotient by 4 (see Example 1 of paragraph (d) of this
section). This has the effect of calculating the REP on a quarterly
basis.
(4) For each of the worker's computation base years (see
Secs. 404.211(b), 404.221(b) and 404.241(c)), we multiply the average of
the total wages of all workers for that year by the worker's REP. The
product is the amount of earnings attributed to the worker for that
year, subject to the annual wage limitation (see Sec. 404.1047). The
worker's theoretical earnings record consists of his or her attributed
earnings based on his or her REP for all computation base years.
However, we do not attribute earnings to computation base years before
the year of attainment of age 22 or to computation base years beginning
with the year of attainment of retirement age (or the year in which a
period of disability begins), unless the worker is actually credited
with U.S. earnings in those years. In death cases, earnings for the year
of death will be attributed only through the quarter of death, on a
proportional basis.
(c) Determining the theoretical PIA. We determine the worker's
theoretical PIA based on his or her theoretical earnings record by
applying the same computation method that would have applied under
subpart C if the worker had these theoretical earnings and had qualified
for benefits without application of an agreement. However, when the
criteria in Sec. 404.210(a) for the Average Indexed Monthly Earnings
(AIME) computation method are met, only that method is used. If these
criteria are not met but the criteria in Sec. 404.220(a) for the Average
Monthly Wage method are met, then only that

[[Page 497]]

method is used. If neither of these criteria are met, then the old-start
method described in Sec. 404.241 is used. If a theoretical PIA is to be
determined based on a worker's AIME, theoretical earnings amounts for
each year, determined under paragraph (b) of this section, are indexed
in determining the AIME under Sec. 404.211.
(d) Determining the pro rata PIA. We then determine a pro rata PIA
from the theoretical PIA. The pro rata PIA is the product of--
(1) The theoretical PIA; and
(2) The ratio of the worker's actual number of U.S. QC's to the
number of calendar quarters in the worker's coverage lifetime. A
coverage lifetime means the worker's benefit computation years as
determined under Sec. 404.211(e), Sec. 404.221(c), or Sec. 404.241(d).

Example 1: C attains age 62 in 1982 and needs 31 QC's to be insured.
C worked under the U.S. system from July 1, 1974 to December 31, 1980
and therefore has only 6\1/2\ years during which he worked under the
U.S. system (26 QC's). C, however, has worked under the Social Security
system of a foreign country that is party to a totalization agreement,
and his total U.S. and foreign work, combined as described in
Sec. 404.1908, equals more than 31 QC's. Thus, the combined coverage
gives C insured status. The benefit is computed as follows:
Step 1: Establish C's theoretical earnings record:
The following table shows: (1) C's actual U.S. covered earnings for
each year, (2) the average of the total wages of all workers for that
year and (3) the ratio of (1) to (2):

----------------------------------------------------------------------------------------------------------------
C's actual
U.S. National Percentage
Year QC's covered average ratio of
earnings wage (1) to (2)
----------------------------------------------------------------------------------------------------------------
(1) (2) (3)
----------------------------------------------------------------------------------------------------------------

1974............................................................... 2 $2,045.08 $8,030.76 25.46558
1975............................................................... 4 7,542.00 8,630.92 87.38350
1976............................................................... 4 9,016.00 9,226.48 97.71874
1977............................................................... 4 9,952.00 9,779.44 101.76452
1978............................................................... 4 10,924.00 10,556.03 103.48587
1979............................................................... 4 12,851.00 11,479.46 111.94777
1980............................................................... 4 11,924.00 12,513.46 95.28939
----------------------------------------------------------------------------------------------------------------

C's REP is the average of the ratios in column 3, adjusted to take
account of the fact that C had only 2 QC's in 1974. Thus, the REP equals
the sum of the figures in column 3 (623.05537), divided by the total
number of C's QC's (26) and multiplied by 4, or 95.85467 percent.
Since C attained age 62 in 1982, his computation base years are 1951
through 1981. To establish his theoretical earnings record we use
95.85467 percent of the national average wage for each of the years 1951
through 1981. Since national average wage data is not available for
1981, for that year we attribute 95.85467 percent of the national
average wage for 1980 or $11,994.74. His theoretical earnings record
would look like this:

1951....................................................... $2,683.13
1952....................................................... 2,850.07
1953....................................................... 3,009.30
1954....................................................... 3,024.83
1955....................................................... 3,164.58
1956....................................................... 3,385.93
1957....................................................... 3,490.76
1958....................................................... 3,521.51
1959....................................................... 3,695.96
1960....................................................... 3,841.01
1961....................................................... 3,917.35
1962....................................................... 4,113.51
1963....................................................... 4,214.38
1964....................................................... 4,386.62
1965....................................................... 4,465.60
1966....................................................... 4,733.65
1967....................................................... 4,997.33
1968....................................................... 5,340.79
1969....................................................... 5,649.44
1970....................................................... 5,929.80
1971....................................................... 6,227.75
1972....................................................... 6,838.08
1973....................................................... 7,265.94
1974....................................................... 7,697.86
1975....................................................... 8,273.14
1976....................................................... 8,844.01
1977....................................................... 9,374.05
1978....................................................... 10,118.45
1979....................................................... 11,003.60
1980....................................................... 11,994.74
1981....................................................... 11,994.74

Step 2: Compute the theoretical PIA: Since C attains age 62 in 1982,
we determine his theoretical PIA using an AIME computation. In applying
the AIME computation, we index each year's earnings on the theoretical
earnings record in accordance with Sec. 404.211(d). In this example, the
theoretical PIA is $453.
Step 3: Compute the pro rata PIA:

Theoretical PIA
x Actual U.S. QC's
----------------------------------------------
calendar quarters in
benefit computation years

$453 x 26 QC's (6\1/2\ years)
----------------------------------------------
104 quarters (26 years)

=$113.20 pro rata PIA

Example 2: M needs 27 QC's to be insured, but she has only 3 years
of work (12 QC's) under the U.S. system. M has enough foreign work,
however, to be insured. She attained age 62 in 1978, and her U.S.
covered earnings were in 1947, 1948 and 1949. Based on M's date of
birth, her theoretical PIA can be computed, in accordance with
Sec. 404.220, under a new start method. If M's earnings in 1947, 1948,
and 1949 were 50 percent, 60 percent and

[[Page 498]]

70 percent, respectively, of the average wage for each year, her REP
would be 60 percent. For each year in the computation period, 60 percent
of the average wage for that year will be attributed as M's assumed
earnings. The theoretical PIA will then be computed as described in
Secs. 404.220 through 404.222.
To determine M's pro rata PIA, the theoretical PIA will be
multiplied by the ratio of the actual number of U.S. QC's to the number
of calendar quarters in the benefit computation years. There are 22
benefit computation years, or 88 quarters. The pro rata PIA would,
therefore, be \12/88\ x theoretical PIA.

(e) Rounding of benefits. (1) If the effective date of the pro rata
PIA is before June 1982, we will round to the next higher multiple of 10
cents if it is not already a multiple of 10 cents.
(2) If the effective date of the pro rata PIA is June 1982 or later,
we will round to the next lower multiple of 10 cents if it is not
already a multiple of 10 cents.
(f) Auxiliary and survivors benefits; reductions; family maximum. We
will determine auxiliary and survivors benefit amounts (see subpart D)
on the basis of the pro rata PIA. We will apply the regular reductions
for age under section 202(q) of the Act to the benefits of the worker or
to any auxiliaries or survivors which are based on the pro rata PIA (see
Sec. 404.410). Benefits will be payable subject to the family maximum
(see Sec. 404.403) derived from the pro rata PIA. If the pro rata PIA is
less than the minimum PIA, the family maximum will be 1\1/2\ times the
pro rata PIA.

[49 FR 29775, July 24, 1984]

Sec. 404.1919 How benefits are recomputed.

Unless otherwise provided in an agreement, we will recompute
benefits in accordance with this section. We will recompute the pro rata
PIA only if the inclusion of the additional earnings results in an
increase in the benefits payable by the U.S. to all persons receiving
benefits on the basis of the worker's earnings. Subject to this
limitation, the pro rata PIA will be automatically recomputed (see
Sec. 404.285) to include additional earnings under the U.S. system. In
so doing, a new REP will be established for the worker, taking the
additional earnings into account, and assumed earnings in the
computation base years used in the original computation will be
refigured using the new REP. Assumed earnings will also be determined
for the year of additional earnings using the new REP. The additional
U.S. earnings will also be used in refiguring the ratio described in
Sec. 404.1918(d)(2).

[49 FR 29777, July 24, 1984]

Sec. 404.1920 Supplementing the U.S. benefit if the total amount of the combined benefits is less than the U.S. minimum benefit.

If a resident of the U.S. receives benefits under an agreement from
both the U.S. and from the foreign country, the total amount of the two
benefits may be less than the amount for which the resident would
qualify under the U.S. system based on the minimum PIA as in effect for
persons first becoming eligible for benefits before January 1982. An
agreement may provide that in the case of an individual who first
becomes eligible for benefits before January 1982, the U.S. will
supplement the total amount to raise it to the amount for which the
resident would have qualified under the U.S. system based on the minimum
PIA. (The minimum benefit will be based on the first figure in column IV
in the table in section 215(a) of the Act for a person becoming eligible
for the benefit before January 1, 1979, or the PIA determined under
section 215(a)(1)(C)(i)(I) of the Act (as in effect in December 1981)
for a person becoming eligible for the benefit after December 31, 1978.)

[49 FR 29777, July 24, 1984]

Sec. 404.1921 Benefits of less than $1 due.

If the monthly benefit amount due an individual (or several
individuals, e.g., children, where several benefits are combined in one
check) as a result of a claim filed under an agreement is less than $1,
the benefits may be accumulated until they equal or exceed $5.

Other Provisions

Sec. 404.1925 Applications.

(a)(1) An application, or written statement requesting benefits,
filed with the competent authority or agency of a country with which the
U.S. has

[[Page 499]]

concluded an agreement shall be considered an application for benefits
under title II of the Act as of the date it is filed with the competent
authority or agency if--(i) An applicant expresses or implies an intent
to claim benefits from the U.S. under an agreement; and
(ii) The applicant files an application that meets the requirements
in subpart G of this part.
(2) The application described in paragraph (a)(1)(ii) of this
section must be filed, even if it is not specifically provided for in
the agreement.
(b) Benefits under an agreement may not be paid on the basis of an
application filed before the effective date of the agreement.

Sec. 404.1926 Evidence.

(a) An applicant for benefits under an agreement shall submit the
evidence needed to establish entitlement, as provided in subpart H of
this part. Special evidence requirements for disability benefits are in
subpart P of this part.
(b) Evidence submitted to the competent authority or agency of a
country with which the U.S. has concluded an agreement shall be
considered as evidence submitted to SSA. SSA shall use the rules in
Secs. 404.708 and 404.709 to determine if the evidence submitted is
sufficient, or if additional evidence is needed to prove initial or
continuing entitlement to benefits.
(c) If an application is filed for disability benefits, SSA shall
consider medical evidence submitted to a competent authority or agency,
as described in paragraph (b) of this section, and use the rules of
subpart P of this part for making a disability determination.

Sec. 404.1927 Appeals.

(a) A request for reconsideration, hearing, or Appeals Council
review of a determination that is filed with the competent authority or
agency of a country with which the U.S. has concluded an agreement,
shall be considered to have been timely filed with SSA if it is filed
within the 60-day time period provided in Secs. 404.911, 404.918, and
404.946.
(b) A request for reconsideration, hearing, or Appeals Council
review of a determination made by SSA resulting from a claim filed under
an agreement shall be subject to the provisions in subpart J of this
part. The rules governing administrative finality in subpart J of this
part shall also apply.

Sec. 404.1928 Effect of the alien non-payment provision.

An agreement may provide that a person entitled to benefits under
title II of the Social Security Act may receive those benefits while
residing in the foreign country party to the agreement, regardless of
the alien non-payment provision (see Sec. 404.460).

Sec. 404.1929 Overpayments.

An agreement may not authorize the adjustment of title II benefits
to recover an overpayment made under the social security system of a
foreign country (see Sec. 404.501). Where an overpayment is made under
the U.S. system, the provisions in subpart F of this part will apply.

Sec. 404.1930 Disclosure of information.

The use of information furnished under an agreement generally shall
be governed by the national statutes on confidentiality and disclosure
of information of the country that has been furnished the information.
(The U.S. will be governed by pertinent provisions of the Social
Security Act, the Freedom of Information Act, the Privacy Act, the Tax
Reform Act, and other related statutes.) In negotiating an agreement,
consideration, should be given to the compatibility of the other
country's laws on confidentiality and disclosure to those of the U.S. To
the extent possible, information exchanged between the U.S. and the
foreign country should be used exclusively for purposes of implementing
the agreement and the laws to which the agreement pertains.