Proclamation Giving Notice that the Agreement on Social Security between Canada and Romania and the Administrative Agreement between the Government of Canada and the Government of Romania for the Application of the Agreement on Social Security between Canada and Romania Comes into Force on November 1, 2011 (SI/2011-90)

Agreement on Social Security Between Canada and Romania

CANADA

And

ROMANIA

Hereinafter referred to as “the Parties”,

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 IGeneral Provisions

ARTICLE 1Definitions

• 1 For the purpose of this Agreement:

  legislation

  legislation means, as regards a Party, the laws, regulations and statutory acts specified in Article 2;

  benefit

  benefit means, as regards a Party, any cash benefit for which provision is made in the legislation of that Party and includes any supplements or increases applicable to such a cash benefit;

  competent authority

  competent authority means:

  as regards Canada, the Minister or Ministers responsible for the application of the legislation of Canada; and,

  as regards Romania, the ministry or ministries responsible for the legislation specified in Article 2;

  competent institution

  competent institution means:

  as regards Canada, the competent authority; and,

  as regards Romania, the body or authority responsible for applying the legislation specified in Article 2;

  creditable period

  creditable period means:

  as regards Canada, a period of contribution used to acquire the right to a benefit under the Canada Pension Plan; a period during which a disability pension is paid under that Plan; and a period of residence used to acquire the right to a benefit under the Old Age Security Act; and,

  as regards Romania, periods of contribution and equivalent periods completed under the legislation of Romania.

• 2 Any term not defined in this Article shall have the meaning assigned to it in the applicable law of either Party.

ARTICLE 2Legislation to which the Agreement Applies

• 1 This Agreement shall apply to the following legislation:

  • (a) with respect to Canada:

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

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

  • (b) with respect to Romania:

    the legislation on old-age, invalidity and survivors pensions insurance.

• 2 Subject to paragraph 3 of this Article, this Agreement shall also apply to laws and regulations which amend, supplement, consolidate or supersede the legislation specified in paragraph 1.

• 3 Notwithstanding paragraph 2 of this Article, this Agreement shall further apply to the extension of the legislation of a Party to new categories of beneficiaries or to new benefits, unless that Party informs the other Party, within three months of the entry into force of that legislation, that the Agreement shall not apply to the new categories of beneficiaries or to the new benefits.

ARTICLE 3Persons to whom the Agreement Applies

This Agreement shall apply to any person who is or who has been subject to the legislation of Canada or Romania and to persons who derive rights from such a person within the meaning of the applicable legislation of either Party.

ARTICLE 4Equality of Treatment

Any person described in Article 3 to whom the legislation of a Party applies shall have the same rights and obligations under that legislation as the citizens of that Party.

ARTICLE 5Export of Benefits

• 1 Unless otherwise provided in this Agreement, benefits paid under the legislation of a Party to any person described in Article 3, including benefits acquired by virtue of this Agreement, shall not be subject to any reduction, modification, suspension or cancellation by reason only of the fact that the person resides in the territory of the other Party.

• 2 An allowance and a guaranteed income supplement shall be paid to a person who is outside Canada only to the extent permitted by the Old Age Security Act.

• 3 Unless otherwise provided in this Agreement, benefits paid to a person described in Article 3 shall also be paid when that person resides in the territory of a third State.

PART IIProvisions Concerning the Applicable Legislation

ARTICLE 6General Rules Regarding Coverage for Employed and Self-Employed Persons

Subject to Articles 7 to 10:

• (a) An employed person who works in the territory of a Party shall, in respect of that work, be subject only to the legislation of that Party.

• (b) A self-employed person who resides in the territory of a Party and who works for his or her own account in the territory of the other Party or in the territories of both Parties shall, in respect of that work, be subject only to the legislation of the first Party.

ARTICLE 7Detachments

• 1 An employed person who is subject to the legislation of a Party and who is sent to work in the territory of the other Party for the same employer shall, in respect of that work, be subject only to the legislation of the first Party as though that work was performed in its territory, for a period that may be maintained for up to 36 months.

• 2 Pursuant to paragraph 1 of this Article, the period during which the employee is subject to the legislation of the first Party may be extended for an additional period of 24 months with the prior consent of the competent authorities of both Parties.

ARTICLE 8Crews of Ships

A person who, but for this Agreement, would be subject to the legislation of both Parties 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 the Party where he or she resides.

ARTICLE 9Civil Service and Government Employment

• 1 Notwithstanding any provision of this Agreement, the provisions regarding social security of the Vienna Convention on Diplomatic Relations of 18 April 1961 and the Vienna Convention on Consular Relations of 24 April 1963 shall continue to apply.

• 2 A person employed in government or civil service who is sent by a Party to work in the territory of the other Party shall, in respect of that employment, be subject only to the legislation of the first Party.

• 3 Except as provided in paragraphs 1 and 2 of this Article, a person who resides in the territory of a Party and who is employed therein in government, civil service, a diplomatic mission or a consular post for the other Party shall, in respect of that employment, be subject only to the legislation of the first Party.

ARTICLE 10Exceptions

The competent authorities of the Parties may, by common agreement, modify the application of the provisions of Articles 6 to 9 to the benefit of any person or categories of persons.

ARTICLE 11Definition of Certain Periods of Residence with Respect to the Legislation of Canada

• 1 For the purpose of calculating the amount of benefits under the Old Age Security Act:

  • (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 presence or residence in Romania, that period shall be considered as a period of residence in Canada for that person; it shall also be considered to be a period of residence in Canada for that person’s spouse or common-law partner and dependants who reside with him or her and who are not subject to the legislation of Romania by reason of employment or self-employment;

  • (b) if a person is subject to the legislation of Romania during any period of presence or residence in Canada, that period shall not be considered as a period of residence in Canada for that person; it shall also not be considered as a period of residence in Canada for that person’s spouse or common-law partner and dependants who reside with him or her 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 or self-employment.

• 2 In the application of paragraph 1 of this Article:

  • (a) a person shall be considered to be subject to the Canada Pension Plan or to the comprehensive pension plan of a province of Canada during a period of presence or residence in Romania only if that person makes contributions pursuant to the plan concerned during that period by reason of employment or self-employment;

  • (b) a person shall be considered to be subject to the legislation of Romania during a period of presence or residence in Canada only if that person makes compulsory contributions pursuant to that legislation during that period by reason of employment or self-employment.

PART IIIProvisions Concerning Benefits

Chapter 1Totalizing

ARTICLE 12Periods under the Legislation of Canada and Romania

• 1 If a person is not eligible for a benefit because he or she has not accumulated sufficient creditable periods under the legislation of a Party, the eligibility of that person for that benefit shall be determined by totalizing these periods and those specified in paragraphs 2 through 4, provided that the periods do not overlap.

• 2 For the purpose of determining eligibility for a benefit:

  • (a) under the Old Age Security Act of Canada, a creditable period under the legislation of Romania shall be considered as a period of residence in Canada;

  • (b) under the Canada Pension Plan, a calendar year including at least three months which are creditable periods under the legislation of Romania shall be considered as a year which is creditable under the Canada Pension Plan.

• 3 For the purpose of determining eligibility for an old age benefit under the legislation of Romania:

  • (a) a calendar year which is a creditable period under the Canada Pension Plan shall be considered as 12 months which are creditable under the legislation of Romania;

  • (b) a month which is a creditable period under the Old Age Security Act of Canada and which does not overlap with a creditable period under the Canada Pension Plan shall be considered as a month which is creditable under the legislation of Romania.

For the purpose of determining eligibility for an invalidity, survivor’s or death benefit under the legislation of Romania, a calendar year which is a creditable period under the Canada Pension Plan shall be considered as 12 months which are creditable under the legislation of Romania.

ARTICLE 13Periods under the Legislation of a Third State

If a person is not eligible for a benefit on the basis of the creditable periods under the legislation of either Party, totalized as provided in Article 12, the eligibility of that person for that benefit shall be determined by totalizing these periods and periods completed under the legislation of a third State with which both Parties are bound by social security instruments which provide for the totalizing of periods. Only periods which can be considered under the totalizing provisions of the relevant instrument with that third State shall be taken into account.

ARTICLE 14Minimum Period to be Totalized

Notwithstanding any other provision of this Agreement, if the total duration of the creditable periods accumulated under the legislation of a Party is less than one year and if, taking into account only those periods, no right to a benefit exists under the legislation of that Party, the competent institution of that Party shall not be required to pay a benefit in respect of those periods by virtue of this Agreement. These creditable periods shall, however, be taken into consideration by the competent institution of the other Party to determine eligibility for the benefits of that Party through the application of Chapter 1.

Chapter 2Benefits under the Legislation of Canada

ARTICLE 15Benefits under the Old Age Security Act

• 1 If a person is eligible for a pension or allowance under the Old Age Security Act solely through the application of the totalizing provisions of Chapter 1, the competent institution of Canada shall calculate the amount of the pension or allowance payable to that person in conformity with the provisions of that Act governing the payment of a partial pension or allowance, exclusively on the basis of the periods of residence in Canada which may be considered under that Act.

• 2 Paragraph 1 shall also apply to a person outside Canada who would be eligible for a full pension in Canada but who has not resided in Canada for the minimum period required by the Old Age Security Act for the payment of a pension outside Canada.

• 3 An Old Age Security pension shall be paid to a person who is outside Canada only if that person’s periods of residence, when totalized as provided in Chapter 1, 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 outside Canada.

ARTICLE 16Benefits under the Canada Pension Plan

If a person is eligible for a benefit solely through the application of the totalizing provisions of Chapter 1, the competent institution of Canada shall calculate the amount of benefit payable to that person in the following manner:

• (a) the earnings-related portion of the benefit shall be determined in conformity with the provisions of the Canada Pension Plan, exclusively on the basis of the pensionable earnings under that Plan;

• (b) the flat-rate portion of the benefit shall be determined by multiplying:

  • (i) the amount of the flat-rate portion of the benefit determined in conformity with the provisions of the Canada Pension Plan

  by

  • (ii) the fraction which represents the ratio of the periods of contributions to the Canada Pension Plan in relation to the minimum qualifying period required under that Plan to establish eligibility for that benefit, but in no case shall that fraction exceed the value of one.

Chapter 3Benefits under the Legislation of Romania

ARTICLE 17Calculating the Amount of Benefit Payable

• 1 If a person is eligible for a benefit solely through the application of the totalizing provisions of Chapter 1, the competent institution of Romania shall calculate the amount of benefit payable to that person in the following manner:

  • (a) the theoretical amount of the benefit shall be calculated as if all the creditable periods were completed under the legislation of Romania; and

  • (b) on the basis of the theoretical amount calculated in accordance with sub-paragraph 1 (a), shall determine the amount of the benefit payable by applying the ratio of the length of the creditable periods under the legislation of Romania to the totalized creditable periods.

• 2 If the amount of the benefit is determined taking into account the number of beneficiaries, the competent institution of Romania shall also take into account persons who reside or stay in Canada.

• 3 For the purpose of calculating the amount of a benefit as described in paragraph 1 of this Article, only income considered under Romanian legislation and contributions paid under that legislation shall be taken into account.

PART IVAdministrative and Miscellaneous Provisions

ARTICLE 18Administrative Agreement

• 1 An Administrative Agreement shall be concluded with a view to establishing the measures necessary for the application of this Agreement.

• 2 The liaison bodies shall be designated in that Administrative Agreement.

ARTICLE 19Exchange of Information and Mutual Assistance

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

  • (a) shall, to the extent permitted by the legislation which they administer, communicate to each other any information necessary for the application of that legislation;

  • (b) shall lend their good offices and furnish assistance to one another for the purpose of determining eligibility for, or the amount of, any benefit under this Agreement, or under the legislation to which this Agreement applies, as if the matter involved 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 provision contained in this Agreement or in an Administrative Agreement concluded pursuant to Article 18 for the reimbursement of certain types of expenses.

• 3 If the competent institution of a Party requires that a claimant or a beneficiary who resides in the territory of the other Party undergo a medical examination, the liaison body of the latter Party, at the request of the liaison body of the first Party, shall make arrangements for carrying out this examination. If the medical examination is carried out exclusively for the use of the institution which requests it, that liaison body shall reimburse the liaison body of the other Party for the costs of the examination. However, if the medical examination is for the use of both liaison bodies, there shall be no reimbursement of costs.

• 4 Unless disclosure is required under the laws of a Party, any information about a person which is transmitted in accordance with this Agreement to that Party by the other Party is confidential and shall be used only for purposes of implementing this Agreement and the legislation to which this Agreement applies.

ARTICLE 20Exemption or Reduction of Taxes, Dues, Fees and Charges

• 1 Any exemption from or reduction of taxes, legal dues, consular fees and administrative charges for which provision is made in the legislation of a Party in connection with the issuing of any 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 Party.

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

ARTICLE 21Language of Communication

For the application of this Agreement, the competent authorities and institutions of the Parties may communicate directly with one another in any official language of either Party.

ARTICLE 22Submitting a Claim, Notice or Appeal

• 1 Claims, notices and appeals concerning eligibility for, or the amount of, a benefit under the legislation of a Party which should, for the purposes of that legislation, have been submitted within a prescribed period to a competent authority or competent institution of that Party, but which are submitted within the same period to a competent authority or competent institution of the other Party, shall be treated as if they had been submitted to the competent authority or competent institution of the first Party. The date of submission of claims, notices and appeals to the competent authority or competent institution of the other Party shall be deemed to be the date of their submission to the competent authority or competent institution of the first Party. The competent authority or competent institution to which the claim, notice or appeal has been submitted shall transmit it without delay to the competent authority or competent institution of the other Party.

• 2 The date that a claim for a benefit is submitted under the legislation of a Party shall be considered to be the date that a claim for a corresponding benefit is submitted under the legislation of the other Party, provided that the applicant at the time of application:

  • (i) requests that it be considered a claim under the legislation of the other Party, or

  • (ii) provides information indicating that creditable periods have been completed under the legislation of the other Party.

  The preceding sentence shall not apply if the applicant requests that his or her claim to the benefit under the legislation of the other Party be delayed.

• 3 Paragraph 2 of this Article shall only apply to claims submitted after the date of entry into force of this Agreement.

ARTICLE 23Payment of Benefits

• 1 The competent institution of a Party shall pay benefits under this Agreement to a beneficiary who resides outside its territory in a freely convertible currency.

• 2 A competent institution of a Party shall pay benefits under this Agreement without any deduction for its administrative expenses.

ARTICLE 24Resolution of Difficulties

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

• 2 The Parties shall consult promptly at the request of either Party concerning matters which have not been resolved by the competent authorities in accordance with paragraph 1 of this Article.

ARTICLE 25Understandings with a Province of Canada

The relevant authority of Romania 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 VTransitional and Final Provisions

ARTICLE 26Transitional Provisions

• 1 Any creditable period completed 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 this Agreement and its amount.

• 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 this Agreement.

• 3 Subject to paragraph 2 of this Article, a benefit, other than a lump sum payment, shall be paid under this Agreement in respect of events which happened before the date of entry into force of this Agreement.

ARTICLE 27Duration and Termination

• 1 This Agreement shall remain in force without any limitation on its duration. It may be terminated at any time by either Party giving 12 months notice in writing to the other Party.

• 2 In the event of the termination of this Agreement, any right acquired by a person in accordance with its provisions shall be maintained and any claim submitted prior to its termination shall be considered in accordance with the provisions of this Agreement.

ARTICLE 28Entry into Force

This Agreement shall enter into force on the first day of the fourth month following the month in which each Party shall have received from the other Party written notification that it has complied with all domestic requirements for the entry into force of this Agreement.

IN WITNESS WHEREOF, the undersigned, being duly authorized thereto, have signed this Agreement.

DONE in duplicate at Ottawa this 19th day of November, 2009, in the English, French and Romanian languages, each version being equally authentic.

Administrative Agreement Between the Government of Canada and the Government of Romania for the Application of the Agreement on Social Security Between Canada and Romania

THE GOVERNMENT OF CANADA and

THE GOVERNMENT OF ROMANIA,

PURSUANT TO paragraph 1 of Article 18 of the Agreement on Social Security between Canada and Romania,

HAVE AGREED as follows:

ARTICLE 1Definitions

• 1 For the purposes of this Administrative Agreement, Agreement on Social Security means the Agreement on Social Security between Canada and Romania, done at Ottawa on 19 November 2009.

• 2 For the purposes of this Administrative Agreement, competent authority means the Department of Human Resources and Skills Development of Canada, the Canada Revenue Agency, and the Ministry of Labour, Family and Social Protection of Romania.

• 3 Any other term shall have the meaning given to it in the Agreement on Social Security.

ARTICLE 2Liaison Bodies

Pursuant to paragraph 2 of Article 18 of the Agreement on Social Security, the following organizations are designated as the liaison bodies:

• (a) for the Department of Human Resources and Skills Development of Canada and the Canada Revenue Agency:

  • (i) in regard to all matters except the application of Articles 6 to 10 of the Agreement on Social Security and Article 3 of this Administrative Agreement, the International Operations Division, Service Canada, Department of Human Resources and Skills Development, and

  • (ii) in regard to the application of Articles 6 to 10 of the Agreement on Social Security and Article 3 of this Administrative Agreement, the Legislative Policy Directorate, Canada Revenue Agency;

• (b) for the Ministry of Labour, Family and Social Protection of Romania, the National House for Pensions and other Social Insurance Rights.

ARTICLE 3Coverage of Employed and Self-Employed Persons

• 1 In cases as provided for in Article 6(b) and Articles 7, 8 and 10 of the Agreement on Social Security, the liaison body whose legislation applies shall, on request, issue a certificate of fixed duration certifying, in respect of the work in question, that the employed person and that person’s employer or the self-employed person are subject to that legislation. The employed person in question as well as that person’s employer, the self-employed person and the other liaison body shall receive a copy of the certificate from the liaison body which issues it. The certificate shall be evidence that the employee or the self-employed person is exempt from compulsory coverage under the legislation applied by the other liaison body.

• 2 In cases described in paragraph 3 of Article 9 of the Agreement on Social Security, all the requirements prescribed for employers by the applicable legislation shall be respected.

ARTICLE 4Processing a Claim

• 1 If a liaison body receives a claim for a benefit under the legislation applied by the other liaison body, it shall, without delay, send the claim to the other liaison body, indicating the date on which the claim has been received.

• 2 Along with the claim, the first liaison body shall also transmit any documentation available to it which may be necessary for the other liaison body to establish the claimant’s eligibility for the benefit.

• 3 The personal information regarding an individual contained in the claim shall be certified by the liaison body which will confirm that the information is corroborated by documentary evidence; the transmission of the form so certified shall exempt the liaison body from sending the supporting documents. The type of information to which this paragraph applies shall be mutually decided upon by the liaison bodies.

• 4 The liaison body shall provide, upon request, to the other liaison body any available medical information and documentation concerning the invalidity of a claimant or beneficiary.

• 5 In addition to the claim and documentation referred to in this Article, the first liaison body shall send to the other liaison body a liaison form which will indicate, in particular, the creditable periods under its legislation.

• 6 The other liaison body shall subsequently determine the claimant’s eligibility and notify both the claimant and the first liaison body of the decision to grant or deny benefits.

ARTICLE 5Medical Examinations

• 1 The liaison bodies shall arrange medical examinations on each other’s behalf in accordance with the provisions of paragraph 3 of Article 19 of the Agreement on Social Security.

• 2 On receipt of a detailed annual statement of the costs incurred to be issued prior to 31 December of each year, the first liaison body shall, in a timely manner within the following year, reimburse the other liaison body for the amounts due as a result of arranging medical examinations.

• 3 A liaison body may refuse to make arrangements for additional medical examinations if the other liaison body does not comply with the provisions of paragraph 2 of this Article.

ARTICLE 6Exchange of Statistics

The competent authorities shall exchange statistics on an annual basis regarding the payments which each has made under the Agreement on Social Security. These statistics shall include data on the number of beneficiaries and the total amount of benefits paid, by type of benefit.

ARTICLE 7Forms and Detailed Procedures

• 1 Subject to this Administrative Agreement, the liaison bodies shall mutually decide upon the forms and detailed procedures necessary to implement the Agreement on Social Security.

• 2 A liaison body may refuse to accept a claim for a benefit under the legislation applied by the other liaison body if that claim is not submitted on the agreed form.

• 3 A liaison body may refuse to accept information from or provide information to the other liaison body if that liaison body does not request or provide information on the agreed liaison form.

ARTICLE 8Entry into Force

This Administrative Agreement shall enter into force on the date of the entry into force of the Agreement on Social Security and shall terminate upon termination of the Agreement on Social Security.

IN WITNESS WHEREOF, the undersigned, being duly authorized thereto, have signed this Administrative Agreement.

SIGNED in duplicate at Bucharest, this 1st day of June 2010, in the English, French and Romanian languages, each version being equally authentic.