BASIC (10-16)

A. Benefit programs included under the U.S.-Hungary Agreement

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

1. U.S. retirement, survivor, and disability benefits

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

2. Hungarian retirement, survivor, and disability benefits

The agreement applies to the Hungarian old-age retirement, survivor, and disability benefits.

B. Taxes under the Agreement

The provisions of the agreement that eliminate dual social security coverage and taxes apply to the following:

• U.S. Social Security taxes, Federal Insurance Contributions Act (FICA) and Self-Employment Contributions Act (SECA), including the Medicare portions of those Acts; and

• Hungarian social security taxes that finance old-age retirement, survivor, disability, health insurance, sickness and maternity, work injury and unemployment programs.