Effective Dates: 04/25/2019 - Present Previous | Next

Basic (04-19)

GN 01763.110 Scope of the Agreement with Iceland

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

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

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

The agreement applies to U.S. retirement, survivors, and disability benefits and to the corresponding tax laws (FICA and SECA). The agreement does not apply to Medicare benefits, Supplemental Security Income (SSI), or Special Age 72 payments.

2. Icelandic retirement, disability, and survivor benefits

The agreement applies to residence-based Icelandic old-age retirement, disability, and survivor benefits (first pillar) and to the occupational pension system (second pillar). The agreement does not apply to certain social assistance supplements for which Icelandic law provides, such as programs for low-income Icelandic residents, children of incarcerated workers, or children of questionable paternity.

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

  • •

    Icelandic social security taxes that finance the second pillar occupational pension system. General government revenues finance the first pillar residence-based system.

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0201763110
GN 01763.110 - Scope of the Agreement with Iceland - 04/25/2019
Batch run: 04/25/2019
Rev:04/25/2019