Section 202(t)(1) of the Social Security Act (“Act”) generally provides that we do not pay benefits to a beneficiary who:

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  is not a U.S. citizen or national; and

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  has been outside the U.S. for more than 6 consecutive calendar months.

Some beneficiaries may qualify for exceptions to the alien nonpayment provision. In addition, section 202(t)(11) of the Act requires that certain dependents and survivors must also meet a 5-year U.S. residency requirement.

Citizens of Iceland were exempt from the alien nonpayment provision prior to the effective date of the U.S.-Iceland agreement, as described in RS 02610.015 . However, Icelandic citizen dependent and survivor beneficiaries also had to meet a 5-year U.S. residency requirement to qualify for the alien nonpayment exemption. Beginning with the effective date of the U.S.-Iceland agreement, dependent and survivor beneficiaries who are citizens of Iceland do not have to meet the additional 5-year residency requirement because this agreement does not include a limitation to the exemption described in section 202(t)(11)(E) of the Act.

The agreement also removes payment restrictions under sections 202(t)(1) and 202(t)(11) of the Act for all residents of Iceland, regardless of a beneficiary’s country of citizenship.

If a claimant who does not meet another exception to the Alien Nonpayment Provision as described in RS 02610.010 alleges citizenship of Iceland, then develop citizenship status to verify that the exception provided by Icelandic citizenship applies. All residents of Iceland are exempt from the Alien Nonpayment Provision.

For more information about exceptions to the additional U.S. residency requirements for alien dependents and survivors under the U.S-Iceland Agreement, see GN 01763.145.

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  RS 02610.010 Exceptions to Alien Nonpayment

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  RS 02610.015 Status of Countries for Applying Exceptions Based on Citizenship