TN 10 (03-04)
GN 01701.130 Crediting U.S. Quarters of Coverage (QCs) During the Year the Totalization Agreement Becomes Effective
All Totalization agreements include rules that eliminate dual U.S. and foreign social security coverage of the same earnings. Consequently, some workers who had been subject to dual coverage prior to the entry into force of an agreement will become exempt from U.S. coverage beginning with the agreement’s effective date. Frequently, workers exempted from U.S. coverage by an agreement will already have enough covered earnings in the year the agreement enters into force but before the effective date of the agreement to be credited with QCs after the calendar quarter in which the agreement takes effect.
The number holder (NH) will be credited with the appropriate number of QCs in the year the agreement becomes effective based on his or her covered earnings for that year, even if that results in crediting a QC for a calendar quarter after the quarter the agreement becomes effective.
A U.S. citizen who is permanently employed in France by an American employer earns $15,000 during the period 1/88-6/88. Four QCs would be credited to the U.S. record for 1988 even though the agreement with France assigns coverage only to France beginning 7/1/88.
Determining coverage under agreements, RS 02001.000 – RS 02002.000