The original 1979 agreement provides that a child's supplement payable by Germany will be reduced by one-half if the worker is insured for regular German benefits based on German coverage alone (i.e., totali-
zation is not involved) and the child is also entitled to a U.S. benefit. As a result of this provision, when the amount of a U.S. child's benefit is less than 1/2 the amount of the German child's supplement, the reduction in the supplement is greater than the U.S. benefit and there is a net loss of benefits.

Effective March 1, 1988, the supplementary agreement with Germany removes the reduction provision. Therefore, when entitlement to the German child's supplement is established March 1, 1988 or later, the amount of the supplement is not reduced based on receipt of a U.S. child's benefit.

Consider waiver in cases where receipt of a U.S. Child's benefit causes a reduction in the German child's supplement that is greater than the amount of the child's benefit (applies to entitlements prior to 3/1/88). If payment of the U.S. child's benefit is waived, the German supplement will not be reduced even though entitlement to the child's benefit continues.

A new entitlement to German benefits is established whenever there is a change in the type of entitlement, even if there is no break in the receipt of benefits.

For example, a new entitlement to a child's supplement would be established at the time the worker's benefits were converted from disability benefits to retirement benefits, or benefits were converted from life to death benefits because the worker died. If a new entitlement is established after February 29, 1988, receipt of U.S. child benefits will not cause reduction of the German child's supplement.