Home | Databases | WorldLII | Search | Feedback Canadian Treaty Series

Agreement on Social Security between Canada and Sweden [1986] CATSer 2 (1 January 1986)

E103395 - CTS 1986 No. 25

AGREEMENT BETWEEN CANADA AND SWEDEN ON SOCIAL SECURITY

THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF SWEDEN,

RESOLVED to co-operate in the field of social security.

HAVE DECIDED to conclude an agreement for this purpose, and

HAVE AGREED AS FOLLOWS:

PART I - DEFINITIONS AND GENERAL PROVISIONS

ARTICLE I

Definitions

1. For the purposes of this Agreement,

(a) "legislation" means the laws and regulations specified in Article II;

(b) "competent authority" means, as regards Canada, the Minister or Ministers responsible for the administration of the legislation of Canada; and as regards Sweden, the Government or the authority nominated by the Government;

(c) "competent institution" means, as regards Canada, the competent authority; and, as regards Sweden, the body or authority charged with the implementation of the legislation specified in Article II;

(d) "creditable period" means a period of contributions, insurance or residence used to acquire the right to a benefit under the legislation of either State;

(e) "benefit" means any cash benefit, pension or allowance for which provision is made in the legislation of either State and includes any supplements or increases applicable to such a cash benefit, pension or allowance.

2. Any term not defined in this Article has the meaning assigned to it in the applicable legislation.

ARTICLE II

Legislation to which the Agreement Applies

1. This Agreement shall apply to the laws and regulations listed hereunder, their present and future complements, consolidations and amendments:

(a) with respect to Canada:

(i) the Old Age Security Act and the regulations made thereunder;

and

(ii) the Canada Pension Plan and the regulations made thereunder;

(b) with respect to Sweden:

the legislation governing

(i) basic pension, and

(ii) supplementary pension;

however, this Agreement shall not affect branches of social security other than those referred to in this sub-paragraph.

2. This Agreement shall apply to laws or regulations which extend the existing legislation to other categories of beneficiaries unless an objection on the part of either State has been communicated to the other State within three months of notification of such laws or regulations.

ARTICLE III

Persons to whom the Agreement Applies and Equality of Treatment

1. Unless otherwise provided in this Agreement, it shall apply to:

(a) citizens of either State;

(b) refugees, within the meaning of Article 1 of the Convention Relating to the Status of Refugees of July 28, 1951 and of the Protocol of January 31, 1967 to that Convention;

(c) stateless persons, within the meaning of Article I of the Convention Relating to the Status of Stateless Persons of September 28, 1954;

(d) other persons to the extent that they derive rights from a citizen of either State, from a refugee or from a stateless person within the meaning of this Article;

(e) citizens of third states, unless they are included in the group of persons described in sub-paragraph (d).

2. Unless otherwise provided in this Agreement, a person described in paragraph 1 of this Article, regardless of nationality, shall be subject to the obligations of the legislation of a State and shall be eligible for the benefits of that legislation under the same conditions as the citizens of that State.

ARTICLE IV

Export of Benefits

1. Unless otherwise provided in this Agreement, benefits acquired under the legislation of one State, including benefits acquired by virtue of this Agreement, shall not be subject to any reduction, modification, suspension, cancellation or confiscation by reason only of the fact that the beneficiary resides in the territory of the other State, and they shall be payable in the territory of the other State.

2. Benefits payable under this Agreement by one State in the territory of the other State shall also be payable in the territory of a third state.

PART II - PROVISIONS CONCERNING THE APPLICABLE LEGISLATION

ARTICLE V

1. Subject to the following provisions of this Article,

(a) an employed person who works in the territory of one State shall, in respect of that work, be subject only to the legislation of that State, and

(b) a self-employed person who resides in the territory of one State and who works for his own account in the territory of the other State or in the territories of both States shall, in respect of that work, be subject only to the legislation of the former State.

2. An employed person who is covered under the legislation of one State and who performs services in the territory of the other State for the same employer shall, in respect of those services, be subject only to the legislation of the former State as though those services were performed in its territory. In the case of an assignment, this coverage may not be maintained for more than 24 months without the prior consent of the competent authorities of both States.

3. A person who, but for this Article, would be subject to the legislation of both States in respect of employment as a member of the crew of a ship shall, in respect of that employment, be subject only to the legislation of Sweden if the ship flies the flag of Sweden and only to the legislation of Canada in any other case.

4. (a) An employed person shall, in respect of the duties of a government employment performed in the territory of the other State, be subject to the legislation of the latter State only if he is a citizen thereof or if he ordinarily resides in its territory.

(b) This Agreement shall not affect the provisions of the Vienna Convention on Diplomatic Relations and the Vienna Convention on Consular Regulations relating to the legislation specified in paragraph 1 of Article II.

5. The competent authorities of the two States may, by common agreement, modify the application of the preceding provisions of this Article with respect to any persons or categories of persons.

ARTICLE VI

1. For the purpose of calculating benefits under the Old Age Security Act of Canada:

(a) if a person is subject to the Canada Pension Plan or to the comprehensive pension plan of a province of Canada during any period of residence in the territory of Sweden, that period shall be accepted as a period of residence in Canada for that person as well as for his spouse and dependants who reside with him and who are not subject to the legislation of Sweden by reason of employment;

(b) if a person is subject to the legislation of Sweden during any period of residence in the territory of Canada, that period shall not be accepted as a period of residence in Canada for that person and for his spouse and dependants who reside with him and who are not subject to the Canada Pension Plan or to the comprehensive pension plan of a province of Canada, by reason of employment;

(c) if a person referred to in sub-paragraph (b) of this paragraph also becomes subject to the Canada Pension Plan, or to the comprehensive pension plan of a province of Canada, by virtue of occupying simultaneously more than one employment, that period shall not be counted as a period of residence in Canada.

2. For the purposes of Swedish legislation:

(a) where, according to the provisions of Article V, a person is subject to the legislation of one State, he shall be considered resident in the territory of that State;

(b) the provisions of sub-paragraph (a) of this paragraph shall also apply to that person's spouse and dependants who live with him and who are not subject to the legislation of the other State by reason of employment or self-employment.

PART III - PROVISIONS CONCERNING BENEFITS

CHAPTER 1 - Benefits Payable by Canada

ARTICLE VII

1. If a person is not entitled to a benefit on the basis of the periods creditable under the legislation of Canada, eligibility for that benefit shall be determined by totalizing these periods and those stipulated in paragraph 2 of this Article, provided that the periods do not overlap.

2. (a) For purposes of determining eligibility for a benefit payable under the Old Age Security Act, a period of residence in the territory of Sweden, after the age at which periods of residence in Canada are creditable for purposes of that Act, shall be accepted as a period of residence in the territory of Canada.

(b) For purposes of determining eligibility for a benefit payable under the Canada Pension Plan, a year which is creditable for purposes of a supplementary pension under the legislation of Sweden shall be accepted as a year for which contributions have been made under the Canada Pension Plan.

ARTICLE VIII

Benefits Payable Under the Old Age Security Act

1. (a) If a person is entitled to payment of a pension in Canada under the Old Age Security Act without recourse to the provisions of this Agreement, but has not accumulated sufficient periods of residence in Canada to qualify for payment of the pension abroad under that Act, a partial pension shall be payable to him outside the territory of Canada if the periods of residence in the territories of the two States, when totalized as provided in Article VII, are at least equal to the minimum period of residence in Canada required by the Old Age Security Act for payment of a pension abroad.

(b) The amount of the pension payable shall, in this case, be calculated in conformity with the provisions of the Old Age Security Act governing the payment of a partial pension, exclusively on the basis of the periods creditable under that legislation.

2. (a) If a person is not entitled to an Old Age Security pension or a spouse's allowance solely on the basis of periods of residence in Canada, a partial pension or a spouse's allowance shall be payable to him if the periods of residence in the territories of the two States, when totalized as provided in Article VII, are at least equal to the minimum period of residence in Canada required by the Old Age Security Act for payment of a pension or a spouse's allowance.

(b) The amount of the pension or the spouse's allowance payable shall, in this case, be calculated in conformity with the provisions of the Old Age Security Act governing the payment of a partial pension or a spouse's allowance, exclusively on the basis of the periods creditable under that legislation.

3. (a) Notwithstanding any other provision of this Agreement, Canada shall not be liable to pay an Old Age Security pension outside its territory unless the periods of residence in the territories of the two States, when totalized as provided in Article VII, are at least equal to the minimum period of residence in Canada required by the Old Age Security Act for the payment of a pension abroad.

(b) The spouse's allowance and the guaranteed income supplement shall be payable outside the territory of Canada only to the extent permitted by the Old Age Security Act.

ARTICLE IX

Benefits Payable Under the Canada Pension Plan

1. (a) If a person is not entitled to a disability pension, disabled contributor's child's benefit, survivor's pension, orphan's benefit or death benefit solely on the basis of the periods creditable under the Canada Pension Plan, but is entitled to that benefit through totalizing creditable periods as provided in Article VII, the competent institution of Canada shall calculate the amount of the earnings-related portion of such benefit in conformity with the provisions of the Canada Pension Plan, exclusively on the basis of the pensionable earnings credited under that legislation.

(b) The amount of the flat-rate portion of the benefit payable under the provisions of this Agreement shall, in this case, be determined by multiplying:

(i) the amount of the flat-rate portion of the benefit determined under the provisions of the Canada Pension Plan

by

(ii) the ratio that the periods of contributions to the Canada Pension Plan represent in relation to the minimum qualifying period for entitlement to that benefit under the Canada Pension Plan.

2. No benefit shall, however, be paid under this Article unless the contributor has reached an age at which his contributory period, as defined in the Canada Pension Plan, is at least equal to the minimum qualifying period under the legislation of Canada for entitlement to the benefit in question.

CHAPTER 2 - BENEFITS PAYABLE BY SWEDEN

ARTICLE X

1. Canadian citizens as well as the persons described in sub-paragraphs 1. (b), (c) and (d) of Article III who do not fulfill the conditions of the legislation of Sweden which apply to them as regards entitlement to a basic pension shall, whether they reside in Sweden or not, be entitled to a basic pension in accordance with the provisions applicable to Swedish citizens resident outside Sweden.

2. Handicap allowances which are not supplements to a basic pension, care allowances for handicapped children, general pension supplements and income-tested pension benefits shall be payable to persons designated in paragraph 1 who are residing in Sweden, applying, as appropriate, the provisions referred to in that paragraph.

3. Where a person described in sub-paragraphs 1 (a), (b), (c) or (d) of Article III does not have sufficient creditable periods under the legislation of Sweden to satisfy the requirements for entitlement to a basic pension in accordance with the provisions applicable to Swedish citizens resident outside Sweden, creditable periods under the legislation of Canada shall be taken into account provided that they do not overlap with creditable periods under the legislation of Sweden.

4. Where a person does not have sufficient creditable periods under the legislation of Sweden to satisfy the requirements for entitlement to a supplementary pension, creditable periods under the Canada Pension Plan shall be taken into account provided that they do not overlap with creditable periods under the legislation of Sweden.

5. When calculating the amount of a supplementary pension, only periods creditable under the legislation of Sweden shall be taken into account.

6. When applying paragraphs 3 and 4 of this Article, a year which is creditable under the legislation of Canada shall be considered equal to one calendar year for which pension points have been credited under the legislation of Sweden.

7. Paragraph 2 of Article III shall not result in an extension of the application of the provisions of the legislation of Sweden concerning:

(a) the right to a basic pension for Swedish citizens born before 1930 residing outside Sweden;

(b) the calculation of a supplementary pension for Swedish citizens born before 1924; and

(c) the crediting of pension points for Swedish citizens by virtue of employ­ment while residing outside Sweden.

8. Article IV does not affect the provisions of the legislation of Sweden concerning the right of Swedish citizens residing outside Sweden to a basic pension.

CHAPTER 3 - PROVISIONS COMMON TO CHAPTERS 1 AND 2

ARTICLE XI

If a person is not entitled to a benefit on the basis of periods credited under the legislation of the two States, totalized as provided in this Agreement, eligibility for that benefit shall be determined by totalizing these periods with periods credited under the legislation of a third state with which both States are bound by a social security agreement which contains rules on totalizing of creditable periods.

PART IV - ADMINISTRATIVE AND MISCELLANEOUS PROVISIONS

ARTICLE XII

1. The competent authorities and institutions responsible for the application of this Agreement:

(a) shall communicate to each other any information necessary for the application of this Agreement;

(b) shall lend their good offices and furnish assistance to one another with regard to any matter relating to the application of this Agreement as if the matter were affecting the application of their own legislation;

(c) shall communicate to each other, as soon as possible, all information about the measures taken by them for the application of this Agreement or about changes in their respective legislation in so far as these changes affect the application of this Agreement.

2. The assistance referred to in sub-paragraph 1. (b) of this Article shall be provided free of charge, subject to any agreement reached between the competent authorities of the two States for the reimbursement of certain types of expenses.

3. Unless disclosure is required under the laws of a State, any information about an individual which is transmitted in accordance with this Agreement is confidential and shall be used by that State only for purposes of implementing this Agreement and the legislation to which this Agreement applies.

ARTICLE XIII

1. An administrative arrangement, agreed to by the competent authorities of the two States, shall set out, as required, the conditions under which this Agreement shall be implemented.

2. The liaison agencies of the States shall be designated in that arrangement.

ARTICLE XIV

1. Any exemption from or reduction of taxes, legal dues, consular fees or administrative charges for which provision is made in the legislation of one State in connection with the issuing of a certificate or document required to be produced for the application of that legislation shall be extended to certificates or documents required to be produced for the application of the legislation of the other State.

2. Acts or documents of an official nature required to be produced for the application of this Agreement shall be exempt from authentication by diplomatic or consular authorities or similar formality.

ARTICLE XV

For the application of this Agreement, the competent authorities and institutions of the two States may communicate directly with one another in English, French or Swedish.

ARTICLE XVI

1. Any claim, notice or appeal which should, for the purposes of the legislation of one State, have been presented within a prescribed period to a competent authority or institution of that State, but which is presented within the same period to a competent authority or institution of the other State, shall be treated as if it had been presented to the authority or institution of the first State.

2. A claim for a benefit payable under the legislation of one State shall be deemed to be a claim for the corresponding benefit payable under the legislation of the other State, provided that the applicant

(a) requests that it be considered an application under the legislation of the other State, or

(b) provides information at the time of application indicating that creditable periods had been completed under the legislation of the other State.

However, the applicant may request that his claim to the benefit of the other State be deferred.

3. In any case to which the preceding paragraphs of this Article apply, the authority or institution to which the claim, notice or appeal has been submitted shall transmit it without delay to the authority or institution of the other State.

ARTICLE XVII

1. The benefit paying institutions or authorities shall discharge their obligations under this Agreement in their national currency.

2. Benefits shall be paid to beneficiaries free from deductions for administrative expenses or any other charges that may be incurred in paying the benefits.

ARTICLE XVIII

The competent authorities of the two States shall resolve, to the extent possible, any difficulties which arise in interpreting or applying this Agreement according to its spirit and fundamental principles.

ARTICLE XIX

The competent authority of Sweden and a province of Canada may conclude understandings concerning any social security matter within provincial jurisdiction in Canada in so far as those understandings are not inconsistent with the provisions of this Agreement.

PART V - TRANSITIONAL AND FINAL PROVISIONS

ARTICLE XX

1. Any creditable period established before the date of entry into force of this Agreement shall be taken into account for the purpose of determining the right to a benefit under the Agreement.

2. No provision of this Agreement shall confer any right to receive payment of a benefit for a period before the date of entry into force of the Agreement.

3. Subject to the other provisions of this Article, a benefit, other than a lump sum payment, shall be payable under this Agreement in respect of events which happened before the date of entry into force of the Agreement.

4. On receipt of an application from the person concerned, a benefit granted prior to the entry into force of this Agreement shall be recalculated according to its provisions. Such a recalculation may also be made by a competent institution of a State, without an application having been submitted. In no case shall a recalculation result in a reduction of the benefit paid.

5. Provisions in the legislation of a State concerning the prescription or termination of the right to a benefit shall not apply to rights arising out of this Agreement, provided that an application for that benefit is made within two years of the date of entry into force of this Agreement.

ARTICLE XXI

1. This Agreement shall enter into force, after the conclusion of the administrative arrangement referred to in Article XIII, on the first day of the third month following the month in which each State shall have received from the other State written notification that it has complied with all statutory and constitutional requirements for the entry into force of the Agreement.

2. This Agreement shall remain in force without any limitation on its duration. It may be denounced at any time by either State giving twelve months' notice in writing to the other State.

3. In the event of the termination of this Agreement, any right acquired by a person in accordance with its provisions shall be maintained and negotiations shall take place for the settlement of any rights then in course of acquisition by virtue of those provisions.

4. On the entry into force of this Agreement, it shall supersede the agreement between the Government of Canada and the Government of Sweden, entered into by exchange of letters dated June 26, 1968 and August 21, 1968 and relating to the Canada Pension Plan.

IN WITNESS WHEREOF, the undersigned, being duly authorized thereto by their respective Governments, have signed this Agreement.

DONE in two copies at Stockholm, this 10th day of April, 1985 in English, French and Swedish, each version being equally authentic.

Jake Epp

FOR THE GOVERNMENT OF CANADA

Sten Andersson

FOR THE GOVERNMENT OF SWEDEN