TN 4 (07-96)

A. Policy

1. Benefit programs included

The provisions of the agreement that permit people to qualify for benefits based on combined U.S. and German coverage credits apply to the following types of benefits:

• U.S. retirement, survivors and disability benefits. (The agreement does not apply to Medicare benefits or Supplemental Security Income payments.)

• German old-age, survivors and disability benefits (but not benefits under other programs, such as the German Family Allowance program, the supplementary pension system for steelworkers or the old-age assistance program for self-employed farmers).

2. Taxes included

The provisions of the agreement that eliminate dual Social Security coverage and taxation apply to:

• U.S. Social Security taxes including the Medicare portion.

• German Social Security taxes that finance old-age, survivors and disability pensions.

Under the terms of a supplementary agreement that entered into force on April 1, 1996, the agreement also extends to German taxes that finance sickness benefits and long-term nursing care.

B. Reference

Agreement provisions for the elimination of dual coverage and taxation, RS 02001.001 ff.