BASIC (09-82)

Under the Italian agreement, the beneficiary's residence is important to the payment of benefits in the following situations:

A. Guaranteed minimum provision may apply

The guaranteed minimum provision applies if a beneficiary is:

1. Receiving totalization benefits from both the United States and Italy; and

2. The sum of benefits received from both countries is less than the amount the beneficiary would receive based on the regular minimum PIA; and

3. The beneficiary is residing in the United States.

Under the guaranteed minimum provision, a beneficiary's U.S. totalization benefit is increased so that the total of the benefits that he receives from both countries is equal to the amount of the benefit which would be payable to him based on the regular U.S. minimum PIA in effect. This increased amount is only paid while the beneficiary remains a U.S. resident.

Example:

A wage earner, who is a resident of the United States, files for and is awarded totalization benefits from both the United States and Italy beginning 11/78. (His U.S. benefit is not reduced for age.) The U.S. minimum PIA in effect at that time is $121.80. Based on his earnings from both countries, his monthly totalization benefit is $68.50 from the United States and $45.50 from Italy for a total of $114.00 a month. As long as he is residing in the United States, his monthly U.S. totalization benefit is raised to $76.30 (minimum U.S. PIA $121.80 - Italian totalization benefit $45.50) so that the total he receives from both countries equals the U.S. benefit which would be payable to him based on the minimum PIA.

This provision applies independently to each person receiving benefits on the record based on his residence. For example, an entitled NH is residing in Canada, but his wife and children are residing in the United States. The family is receiving totalization benefits from both Italy and the United States. The sum of these benefits payable to the wife and children is lower than the benefits which would be payable based on the U.S. minimum PIA. Therefore, the wife and children would have their benefits raised to the level which would be payable based on the minimum PIA. However, the wage earner, a Canadian resident, would receive only the basic totalization benefits from each country.

When beneficiaries residing in the United States are entitled to guaranteed minimum benefits, the case is listed under Listing Code 996 (Guaranteed Minimum - Resident of U.S.) and a folder flash (SSA-1208) is prepared.

B. Alien nonpayment provision applies - Listing code 994

The agreement with Italy exempts all residents of Italy, regardless of citizenship, who receive U.S. social security benefits (other than age 72 payments), whether regular or totalization, from the alien non-payment provision of section 202(t) of the Act. Forms SSA-101-U3, SSA 2795-U3, or SSA-3687-U2 display the remark “202(t) Exc. A”for the beneficiary if he meets no other exception to the alien nonpayment provision, and he is paid as long as he resides in Italy. A determination of residence must be made for each of these beneficiaries who meets no other exception and would otherwise be suspended under the alien nonpayment provision.

When residence in Italy is established for an alien beneficiary who meets no other exception to 202(t), the authorizer lists the case under Listing Code 994 (Alien Exception A - International Agreement Exception) and prepares a folder flag for the left side of the claims folder. The listing also shows the country of residence.