Agreement on Social Security between Canada and the Republic of Albania

E105464

CANADA

AND

THE REPUBLIC OF ALBANIA (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 I

GENERAL PROVISIONS

ARTICLE 1

Definitions

1. For the purposes of this Agreement:

“benefit” means, for a Party, any cash benefit that is payable under the legislation of that Party and includes any supplements or increases to that cash benefit;

“competent authority” means:

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

for the Republic of Albania (“Albania”), the Minister or Ministers responsible for the application of the legislation of Albania;

“competent institution” means:

for Canada, the competent authority; and,

for Albania, the institution responsible for the application of the legislation;

“creditable period” means:

for Canada,

1. a period of contribution under the Canada Pension Plan;
2. a period during which a disability pension is paid under the Canada Pension Plan; or
3. a period of residence under the Old Age Security Act; and,

for Albania, a period of contribution or equivalent period under the legislation of Albania;

“legislation” means, for a Party, the laws and regulations referred to in Article 2.

2. A term that is used in the legislation and that is not defined in this Article has the meaning assigned to it in that legislation.

ARTICLE 2

Legislative Scope

1. This Agreement applies to the following legislation:

1. for Canada:
1. the Old Age Security Act and its regulations; and,
2. the Canada Pension Plan and its regulations;
2. for Albania:
         the laws on mandatory social insurance, regulations, and rules concerning old age, invalidity, and survivors’ benefits.

2. This Agreement applies to any laws and regulations that amend, supplement, consolidate or supersede the legislation referred to in paragraph 1.

3. This Agreement also applies to any laws and regulations that extend the legislation of a Party to include a new category of persons or to include a new benefit unless the Party implementing the changes advises the other Party, within six months of the entry into force of those laws and regulations, that this Agreement does not apply to that new category of persons or to that new benefit.

ARTICLE 3

Personal Scope

Each Party shall apply this Agreement to any person who is or who has been subject to the legislation of Canada or Albania, or both Parties, and to any other person who derives eligibility to a benefit from that first person under the legislation of a Party.

ARTICLE 4

Equality of Treatment

A Party shall ensure that any person who is or who has been subject to the legislation of the other Party, and any person who derives eligibility to a benefit from that first person, is subject to the obligations and eligible to the benefits under the legislation of the first Party, under the same conditions as a citizen of the first Party.

ARTICLE 5

Export of a Benefit

1. Unless otherwise provided in this Agreement, a Party shall not reduce, modify, suspend, or cancel a benefit payable to a person described in Article 3, based solely on the fact that the person resides in or is present in the territory of the other Party. A Party shall pay that benefit when that person resides in or is present in the territory of the other Party or in the territory of a third State.

2. For Canada, an allowance or a guaranteed income supplement are payable to a person who is outside Canada only if the Old Age Security Act permits that the benefit be paid.

PART II

PROVISIONS CONCERNING THE APPLICABLE LEGISLATION

ARTICLE 6

General Rules for Employed and Self-Employed Persons

Subject to Articles 7 to 10:

1. an employed person who works in the territory of a Party is, in respect of that work, subject only to the legislation of that Party;
2. a self-employed person who resides in the territory of a Party and who is self-employed in the territories of both Parties is, in respect of that work, subject only to the legislation of the first Party;
3. a self-employed person who resides in the territory of a Party and who is self‑employed in the territory of the other Party for a maximum period of 12 months, is, in respect of that work, subject only to the legislation of the first Party. The consent of both Parties is required to extend the period beyond 12 months.

ARTICLE 7

Detachments

If an employed person who is subject to the legislation of a Party is sent by that person’s employer to work in the territory of the other Party, that person is, in respect of that work, subject only to the legislation of the first Party, as though that work were performed in the first Party’s territory. The consent of both Parties is required to extend the detachment beyond a period of 24 months.

ARTICLE 8

Crews of Ships and Aircrafts

A person who is subject to the legislation of both Parties for employment as a member of the crew of a ship or an aircraft is, in respect of that employment, subject only to the legislation of Canada if that person resides in the territory of Canada. In any other case, that person is subject only to the legislation of Albania.

ARTICLE 9

Government Employment

1. The social security provisions of the Vienna Convention on Diplomatic Relations of 18 April 1961 and the Vienna Convention on Consular Relations of 24 April 1963 continue to apply, notwithstanding this Agreement.

2. A person who is employed by the government of a Party and who is sent by that Party to work in the territory of the other Party is subject only to the legislation of the first Party in respect of that employment.

3. Except as provided in paragraphs 1 and 2, a person who resides in the territory of a Party and who is employed in that territory by the government of the other Party is subject only to the legislation of the first Party in respect of that employment.

ARTICLE 10

Exceptions

The Parties may jointly consent to modify the application of Articles 6 to 9 in the interest of any person or category of persons.

ARTICLE 11

Coverage and Residence under the Legislation of Canada

1. For the purposes of calculating a benefit under the Old Age Security Act:

1. if, during any period of presence or residence in Albania, a person is subject to the Canada Pension Plan or to a comprehensive pension plan of a province of Canada, Canada shall consider that period to be a period of residence in Canada for that person; Canada shall also consider that period to be a period of residence in Canada for that person’s spouse or common‑law partner and for dependants who reside with that person and who are not subject to the legislation of Albania by reason of employment or self‑employment;
2. if a person is subject to the legislation of Albania during any period of presence or residence in Canada, Canada shall determine if that period for that person, and for that person’s spouse or common-law partner and dependants who reside with that person, is considered a period of residence in Canada in accordance with the provisions of the Old Age Security Act.

2. For the purposes of paragraph 1:

1. Canada shall consider that a person is 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 Albania only if, during that period, that person makes a contribution pursuant to that plan by reason of employment or self-employment;
2. Canada shall consider that a person is subject to the legislation of Albania during a period of presence or residence in Canada only if during that period that person makes compulsory contributions pursuant to that legislation by reason of employment or self-employment.

PART III

PROVISIONS CONCERNING BENEFITS

CHAPTER 1

TOTALIZING

ARTICLE 12

Periods under the legislation of Canada and Albania

1. If a person is not eligible for a benefit because that person does not have sufficient creditable periods under the legislation of a Party, that Party shall determine the eligibility of that person for that benefit by totalizing the creditable periods and the periods specified in paragraphs 2 and 3, provided that those periods do not overlap.

2. To determine eligibility for:

1. a benefit under the Old Age Security Act, Canada shall consider a creditable period under the legislation of Albania as a period of residence in Canada;
2. a benefit under the Canada Pension Plan, Canada shall consider a calendar year that includes at least 90 days that are creditable periods under the legislation of Albania as a calendar year that is creditable under the Canada Pension Plan.

3. To determine eligibility for an old age, invalidity, or survivor’s benefit under the legislation of Albania:

1. Albania shall consider a calendar year that is a creditable period under the Canada Pension Plan as 12 months that are creditable under the legislation of Albania;
2. Albania shall consider a period during which a disability benefit is paid under the Canada Pension Plan as a creditable period under the legislation of Albania, provided that the period of payment of the disability benefit does not overlap with a creditable period under the Canada Pension Plan;
3. Albania shall consider a period that is a creditable period under the Old Age Security Act as a creditable period under the legislation of Albania, provided that the creditable period under the Old Age Security Act does not overlap with a creditable period under the Canada Pension Plan or a period during which a disability benefit is paid under the Canada Pension Plan.

ARTICLE 13

Periods completed under the Program of a Third State

If a person is not eligible for a benefit based on the creditable periods under the legislation of the Parties, totalized in accordance with Article 12, the Parties shall determine the eligibility of that person for that benefit by totalizing these periods and creditable periods completed under the program of a third State to which both Parties are bound by social security instruments that provide for the totalizing of periods.

ARTICLE 14

Minimum Period to be Totalized

If the total of the creditable periods completed by a person under the legislation of a Party is less than 12 months and if that person is not eligible for a benefit under the legislation of that Party based solely on those creditable periods, then that Party is not required to pay a benefit to that person for those periods. The other Party shall, however, take into account these creditable periods to determine whether that person is eligible for a benefit under its legislation in accordance with Articles 12 and 13.

CHAPTER 2

BENEFITS UNDER THE LEGISLATION OF CANADA

ARTICLE 15

Benefits under the Old Age Security Act

1. If a person is eligible for a pension or allowance under the Old Age Security Act based solely on the totalizing provisions of Chapter 1, Canada shall calculate the amount of the pension or allowance payable to that person based solely on the periods of residence in Canada that are identified in accordance with that Act.

2. Paragraph 1 also applies to a person outside Canada who would be eligible for a full pension in Canada even if that person 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. Canada shall pay an Old Age Security pension to a person who is outside Canada only if that person’s periods of residence, totalized in accordance with 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 16

Benefits under the Canada Pension Plan

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

1. the earnings-related portion of the benefit is determined in accordance with the provisions of the Canada Pension Plan, based solely on the pensionable earnings under that Plan;
2. the flat-rate portion of the benefit is pro-rated by multiplying:

the amount of the flat-rate portion of the benefit determined in conformity with the Canada Pension Plan

by

the fraction that 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. That fraction must not exceed the value of one.

CHAPTER 3

BENEFITS UNDER THE LEGISLATION OF ALBANIA

ARTICLE 17

Calculating the Amount of Benefit Payable

1. If a person is eligible for a benefit based solely on the totalizing provisions of Chapter 1, Albania shall determine the amount of the benefit payable to that person by ensuring that:

1. the competent institution calculates the theoretical amount of the benefit due as if all the creditable periods completed under the respective legislation of both Parties were completed exclusively under the legislation of Albania;
2. the competent institution then calculates the amount due on the basis of the amount specified under sub-paragraph (a) in proportion to the duration of the creditable periods under the legislation of Albania in relation to the duration of all creditable periods in accordance with sub-paragraph (a).

2. If the creditable periods totalized in accordance with Chapter 1 exceed the creditable periods required for a full old age, invalidity, or survivor benefit, the competent institution calculates a benefit by taking into account the maximum period required for a full old age, invalidity, or survivor benefit, instead of the total of the creditable periods under the respective legislation of both Parties.

PART IV

ADMINISTRATIVE AND MISCELLANEOUS PROVISIONS

ARTICLE 18

Administrative Arrangement

1. The Parties, through their competent authorities, shall conclude an administrative arrangement that establishes the measures necessary to apply this Agreement.

2. The Parties, through their competent authorities, shall designate their liaison agencies in the administrative arrangement.

ARTICLE 19

Exchange of Information and Mutual Assistance

1. A Party shall:

1. communicate to the other Party, to the extent permitted by its laws, any information necessary to apply this Agreement and its legislation;
2. provide assistance to the other Party to determine whether a person is eligible for a benefit, or to determine the amount of a benefit that a person is eligible to receive, as if it was applying its own legislation;
3. promptly communicate to the other Party all information about the measures that it takes to apply this Agreement or about changes in its legislation that affect how this Agreement is applied.

2. Each Party shall provide, free of charge, the assistance referred to in paragraph 1(b), subject to any provision in an administrative arrangement concluded pursuant to Article 18 for the reimbursement of certain types of expenses.

3. Unless disclosure is required under the laws of a Party, any information about a person that is transmitted from a Party to the other Party in accordance with this Agreement is confidential and may only be used to apply this Agreement and the legislation. A Party shall not disclose information received from the other Party to any other person, body, or country, unless:

1. the other Party is notified of the disclosure;
2. the other Party consents to disclose the information; and
3. the information is disclosed only for the same purpose for which it was originally disclosed by the other Party.

ARTICLE 20

Exemption or Reduction of Fees

1. If a Party’s legislation provides that a person is exempt from paying all or part of a legal, consular, or administrative fee for a certificate or document required to apply that legislation, the same exemption applies to any legal, consular, or administrative fee for a certificate or document required to apply the legislation of the other Party. For Canada, a person is not exempt from paying a fee for a medical report that is required by Albania solely to support a claim for a benefit under the legislation of Albania.

2. Official documents required to apply this Agreement do not have to be authenticated by diplomatic or consular authorities.

ARTICLE 21

Language of Communication

The Parties may communicate directly with each other in any official language of either Party.

ARTICLE 22

Submitting a Claim, Notice or Appeal

1. If a claim, notice, or appeal concerning eligibility for, or the amount of, a benefit should be submitted within a prescribed period to a Party but is instead submitted within the same prescribed period to the other Party, the first Party shall treat that claim, notice, or appeal as if it were submitted to that Party within the prescribed period. The date of submission of the claim, notice, or appeal to the other Party is deemed to be the date of submission to the first Party.

2. The Parties shall deem the date that a claim for a benefit is submitted under the legislation of a Party to be the date of submission of a claim for the corresponding benefit under the legislation of the other Party, if a person provides information at the time of application indicating that creditable periods have been completed under the legislation of the other Party. This does not apply to a claim submitted before the date of entry into force of this Agreement or if a person requests that their claim to the benefit under the legislation of the other Party be delayed.

3. The Party to which a claim, notice, or appeal is submitted in accordance with paragraphs 1 and 2 shall transmit it without delay to the other Party.

ARTICLE 23

Payment of Benefits

1.

1. Canada shall pay a benefit in a freely convertible currency to any person who resides outside its territory.
2. In accordance with its legislation, Albania shall pay a benefit in its national currency to any person who resides outside its territory.

2. A Party shall not deduct any amount for its administrative expenses from any benefit paid.

ARTICLE 24

Resolution of Disputes

The Parties shall resolve any disputes that arise in interpreting or applying this Agreement according to the spirit and fundamental principles of this Agreement.

ARTICLE 25

Understanding with a Province of Canada

Albania may conclude an understanding with any province of Canada on any social security matter that is within provincial jurisdiction provided that the understanding is consistent with this Agreement.

PART V

Transitional and Final Provisions

ARTICLE 26

Transitional Provisions

1. The Parties shall take into account any creditable period completed before the date of entry into force of this Agreement to determine eligibility to a benefit and the amount of that benefit under this Agreement.

2. This Agreement does not make any person eligible to receive payment of a benefit for a period that precedes the date of entry into force of this Agreement.

3. A Party shall pay a benefit, other than a lump sum benefit, for an event that precedes the date of entry into force of this Agreement.

4. For the purposes of Article 7, if a person’s detachment begins prior to the entry into force of this Agreement, the earliest date that the Parties shall consider the detachment to begin is on the date of entry into force of this Agreement.

ARTICLE 27

Duration and Termination

1. This Agreement remains in force indefinitely. A Party may terminate it at any time, with 12 months’ notice, in writing, through diplomatic channels to the other Party.

2. If a Party terminates this Agreement, a person is entitled to any benefit already acquired in accordance with this Agreement. This Agreement continues to have effect in relation to any person who applies for a benefit before its termination, if that person would have acquired a benefit had this Agreement not been terminated.

3. Both Parties shall continue to apply Part II of this Agreement to a detachment that commences prior to the termination of this Agreement.

ARTICLE 28

Entry into Force

Each Party shall notify the other by diplomatic note that it has completed the internal legal procedures necessary for the entry into force of this Agreement. This Agreement enters into force on the first day of the fourth month following the month in which the second note is received.

IN WITNESS WHEREOF, the undersigned, being duly authorized thereto by their respective Governments, have signed this Agreement.

Done in duplicate at Ottawa, this 30th day of April 2019, in the English, French and Albanian languages, each version being equally authentic.

Chrystia Freeland, Minister of Foreign Affairs of Canada
FOR CANADA

Ermal Muça, Ambassador of the Republic of Albania to Canada
FOR THE REPUBLIC OF ALBANIA