Message to the Congress -- Supplementary Social Security Agreement with the Czech Republic
TO THE CONGRESS OF THE UNITED STATES:
Pursuant to section 233(e)(1) of the Social Security Act, as amended by the Social Security Amendments of 1977 (Public Law 95-216, 42 U.S.C. 433(e)(1)), I transmit herewith the Supplementary Agreement Amending the Agreement on Social Security between the United States of America and the Czech Republic (the "Supplementary Agreement"). The Supplementary Agreement, signed at Prague on September 23, 2013, is intended to modify a certain provision of the Agreement on Social Security between the United States of America and the Czech Republic, with Administrative Arrangement, signed at Prague on September 7, 2007, and entered into force January 1, 2009 (the "U.S.-Czech Social Security Agreement").
The U.S.-Czech Social Security Agreement as amended by the Supplementary Agreement is similar in objective to the social security agreements already in force with most European Union countries, Australia, Canada, Chile, Japan, Norway, and the Republic of Korea. Such bilateral agreements provide for limited coordination between the United States and foreign social security systems to eliminate dual social security coverage and taxation, and to help prevent the lost benefit protection that can occur when workers divide their careers between two countries.
The Supplementary Agreement amends the U.S.-Czech Social Security Agreement to account for a new Czech domestic health insurance law, which was enacted subsequent to the signing of the U.S.-Czech Social Security Agreement in 2007. By including the health insurance law within the scope of the U.S.-Czech Social Security Agreement, this amendment will exempt U.S. citizen workers and multinational companies from contributing to the Czech health insurance system, when such workers otherwise meet all of the ordinary criteria for such an exemption.
The U.S.-Czech Social Security Agreement, as amended, will continue to contain all provisions mandated by section 233 of the Social Security Act and other provisions that I deem appropriate to carry out the purposes of section 233, pursuant to section 233(c)(4) of the Social Security Act.
I also transmit for the information of the Congress a report required by section 233(e)(1) of the Social Security Act on the estimated number of individuals who will be affected by the Supplementary Agreement and its estimated cost effect. The Department of State and the Social Security Administration have recommended the Supplementary Agreement and related documents to me.
I commend the Supplementary Agreement to the U.S.-Czech Social Security Agreement and related documents.