Proclamation giving notice of the entry into force on October 1, 2017 of the Agreement on Social Security between the Government of Canada and the Government of the Italian Republic ( SI /2017-49)

This Agreement shall apply to any person who is or who has been subject to the legislation of Canada or Italy, and to the dependants and survivors of such a person within the meaning of the applicable legislation of either Party.

ARTICLE 4 Equality of Treatment

Any person who is or who has been subject to the legislation of a Party, and the dependants and survivors of such a person, shall be eligible for benefits under the legislation of the other Party and subject to the obligations of that legislation under the same conditions as citizens of the latter Party.

ARTICLE 5 Export of Benefits

• 1 Unless otherwise provided in this Agreement, benefits acquired by any person described in Article 3 under the legislation of a Party, including benefits acquired by virtue of this Agreement, shall be paid in the territory of the other Party, and shall not be subject to any reduction, modification, suspension, cancellation or confiscation by reason only of the fact that the person resides in the territory of the other Party.
• 2 Benefits payable under this Agreement to a person who is or who has been subject to the legislation of both Parties, and to the dependants or survivors of such a person, shall be paid in the territory of a third State.

PART II Provisions Concerning the Applicable Legislation

ARTICLE 6 General Rule

• 1 Subject to the following provisions of this Part II,
  • (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; and
  • (b) a self-employed person who ordinarily resides in the territory of a Party and who works for his or her own account in the territories of both Parties shall, in respect of that work, be subject only to the legislation of the first Party.

  ARTICLE 7 Detachments

  • 1 An employed person who is subject to the legislation of a Party and who is assigned by his or her employer to work in the territory of the other Party shall, in respect of that work, be subject only to the legislation of the first Party for a period not exceeding 24 months.
  • 2 The period to which the previous paragraph refers may be extended, at the request of the employer and the employed person, if the competent authorities of both Parties consider that the reasons given by the requesters justify the extension.

  ARTICLE 8 Employment in the Continental Shelf Area

  • 1 Article 7 shall apply to a person who is sent to work on an installation situated in the continental shelf area of a Party in connection with the exploration of the seabed and sub-soil of that area or the exploitation of its mineral resources, as though that installation were situated in the territory of that Party.
  • 2 For purposes of this Article, the continental shelf area of a Party includes every area beyond the territorial seas of that Party that, in accordance with international law and the laws of that Party, is an area in respect of which that Party may exercise rights with respect to the seabed and sub-soil and their natural resources.

  ARTICLE 9 Employment Aboard Ships and Aircrafts

  • 1 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 seagoing ship shall, in respect of that employment, be subject only to the legislation of Italy if the ship is flying the Italian flag and only to the legislation of Canada in any other case.
  • 2 A member of a flight crew employed by an international airline company operating in the territories of both Parties shall, in respect of that employment, be subject to the legislation of the Party in whose territory the company has its head office, unless the person is a permanent resident of the territory of the other Party, in which case he or she shall be subject to the legislation of the latter Party.

  ARTICLE 10 Government Employment

  • 1 A person engaged in government employment in respect of a Party who is sent in the course of that employment to the territory of the other Party shall, in respect of that employment, be subject only to the legislation of the first Party.
  • 2 A person who ordinarily resides in Canada and who becomes engaged by a public agency of Italy under the terms of a contract governed by Italian or local law shall, in respect of that employment, be subject only to the legislation of Canada unless the person is a citizen of Italy in which case he or she may elect to be subject to the legislation of Italy.
  • 3 A person who ordinarily resides in Italy and who becomes engaged in a government employment in respect of Canada shall, in respect of that employment, be subject only to the legislation of Italy unless the person is a citizen of Canada in which case he or she may elect to be subject to the legislation of Canada.
  • 4 The election referred to in paragraphs 2 and 3 must be made within three months of the beginning of the employment or, in regard to a person already engaged on the date of the entry into force of this Agreement, within three months of that date.
  • 5 The provisions of the Vienna Convention on Diplomatic Relations of 18 April 1961, regarding the social security coverage of a private servant, and the provisions of the Vienna Convention on Consular Relations of 24 April 1963, regarding the social security coverage of a member of the private staff, shall apply to those categories of persons.

  ARTICLE 11 Exceptions

  The competent authorities of the Parties may, by common agreement, make exception to the provisions of Articles 6 to 10 with respect to any person or categories of persons.

  ARTICLE 12 Definition of Certain Periods of Residence with Respect to the Legislation of Canada

  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 residence in Italy, that period shall be considered as a period of residence in Canada for that person and for that person’s spouse and dependants who reside with him or her and are not subject to the legislation of Italy by reason of employment;
  • (b) if a person is subject to the legislation of Italy during any period of residence in the territory of Canada, that period shall not be considered as a period of residence in Canada for that person and for that person’s spouse and dependants who reside with him or her and are not subject to the Canada Pension Plan or to the comprehensive pension plan of a province of Canada by reason of employment.

  PART III Provisions Concerning Benefits

  CHAPTER I Totalizing

  ARTICLE 13 Periods under the Legislation of Canada and Italy

  • 1 If a person is not entitled to a benefit because he or she has not completed sufficient creditable periods under the legislation of a Party, entitlement to that benefit shall be determined by totalizing these periods and those specified in paragraphs 2 and 3 of this Article, provided that the periods do not overlap.

  (a) For purposes of determining entitlement to a benefit under the Old Age Security Act of Canada, a creditable period under the legislation of Italy or a period of residence in Italy, after the age at which periods of residence in Canada are creditable for purposes of that Act, shall be considered as a period of residence in Canada.

  • (b) For purposes of determining entitlement to a benefit under the Canada Pension Plan , a calendar year including at least 13 weeks which are creditable under the legislation of Italy shall be considered as a year for which contributions have been made under the Canada Pension Plan .
  • 3 For purposes of determining entitlement to a benefit under the legislation of Italy,
    • (a) a calendar year which is a creditable period under the Canada Pension Plan shall be considered as 52 weeks of contributions under the legislation of Italy; and
    • (b) a week which is a creditable period under the Old Age Security Act of Canada and which is not part of a creditable period under the Canada Pension Plan shall be considered as a week of contributions under the legislation of Italy.

    ARTICLE 14 Periods under the Legislation of a Third State

    If a person is not entitled to a benefit on the basis of the periods creditable under the legislation of the Parties, totalized as provided in Article 13, entitlement to that benefit shall be determined by totalizing these periods and periods creditable under the legislation of a third State with which both Parties are bound by separate social security instruments which provide for totalizing of periods.

    ARTICLE 15 Minimum Period to Be Totalized

    Notwithstanding the provisions of Articles 13 and 14, if the total duration of the creditable periods completed under the legislation of a Party is less than one year (52 weeks) and if, taking into account only those periods, no right to a benefit exists under that legislation, the competent institution of that Party shall not be required to award benefits in respect of those periods by virtue of this Agreement. These periods shall, however, be taken into consideration by the competent institution of the other Party to determine entitlement to benefits under the legislation of that Party through the application of this Chapter.

    ARTICLE 16 Entitlement to Italian Voluntary Insurance

    For purposes of determining entitlement to the continuation, on a voluntary basis, of Italian insurance, periods creditable under the legislation of Canada shall, to the extent necessary, be totalized with the periods creditable under the legislation of Italy, provided that they do not overlap.

    CHAPTER II Benefits under the Legislation of Canada

    ARTICLE 17 Benefits under the Old Age Security Act

    • 1 If a person is entitled to the payment of a pension or spouse’s allowance solely through the application of the totalizing provisions of Chapter I of this Part III, the competent institution of Canada shall calculate the amount of the pension or spouse’s allowance payable to that person in conformity with the provisions of the Old Age Security Act governing the payment of a partial pension or a spouse’s allowance, exclusively on the basis of the periods of residence which may be considered under the Old Age Security Act .
    • 2 If a person is entitled to the payment of a pension in Canada without recourse to the provisions of this Agreement, but has not resided in Canada for the minimum period required by the Old Age Security Act for entitlement to payment of a pension outside Canada, the pension payable in Canada shall be paid outside Canada if the creditable periods, when totalized as provided in Chapter I of this Part III, are at least equal to the minimum period of residence in Canada required by the Old Age Security Act for entitlement to the payment of a pension outside Canada.
    • 3 Notwithstanding any other provision of this Agreement,
      • (a) the competent institution of Canada shall not be liable to pay an Old Age Security pension to a person who is outside Canada unless that person’s creditable periods, when totalized as provided in Chapter I of this Part III, are at least equal to the minimum period of residence in Canada required by the Old Age Security Act for entitlement to payment of a pension outside Canada; and
      • (b) the spouse’s allowance and the guaranteed income supplement shall be paid to a person who is outside Canada only to the extent permitted by the Old Age Security Act .

      ARTICLE 18 Benefits under the Canada Pension Plan

      If a person is entitled to a benefit solely through the application of the totalizing provisions of Chapter I of this Part III, the competent institution of Canada shall calculate the amount of benefit payable in the following manner:

      • (a) the earnings-related portion of such 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; and
      • (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
        • (ii) the fraction which represents the ratio of the periods of contributions under the Canada Pension Plan in relation to the minimum qualifying period required under that Plan to establish entitlement to that benefit, but in no case shall that fraction exceed the value of one.

        CHAPTER III Benefits under the Legislation of Italy

        ARTICLE 19 Calculating the Amount of Benefit Payable

        • 1 If a person meets the requirements of the legislation of Italy for entitlement to benefits without recourse to the totalizing provisions of Chapter I of this Part III, the competent institution of Italy shall pay the amount of the benefit calculated solely on the basis of the creditable periods under the legislation which it is applying; the preceding shall apply even if the person is entitled, under the legislation of Canada, to a benefit on the basis of the totalizing of periods, as provided in Chapter I of this Part III.
        • 2 If a person is not entitled to a benefit under the legislation of Italy solely on the basis of the creditable periods under that legislation, the competent institution of Italy shall determine whether entitlement to that benefit can be established through the application of the totalizing provisions of Chapter I of this Part III. The amount of the benefit shall be calculated as follows:
          • (a) by determining the theoretical amount of the benefit to which the person would be entitled if all the totalized periods had been completed under the legislation of Italy;
          • (b) by determining the actual amount of the benefit to which the person is entitled by reducing the theoretical amount calculated as provided in subparagraph (a) on the basis of the ratio of the creditable periods under the legislation which it is applying to the total of the periods completed under the legislation of both Parties;
          • (c) for purposes of determining the amount of a benefit within the meaning of this paragraph, the competent institution of Italy shall use the average earnings or income which is subject to contributions under the legislation of Italy even in respect of the creditable periods under the legislation of Canada;
          • (d) if the total length of the creditable periods under the legislation of both Parties exceeds the maximum period specified by the legislation of Italy for entitlement to a full benefit, the competent institution of Italy shall consider this maximum period instead of the total length of the periods in question.

          ARTICLE 20 Italian Family Benefits

          • 1 Subject to paragraph 2, a person who receives an Italian old age, disability or survivors pension shall also be paid family benefits for members of his or her family who reside in Canada, provided that the conditions prescribed in Italian legislation are met.
          • 2 Paragraph 1 shall not apply in regard to a member of the family of a person who resides in Canada if a Canadian child benefit, other than one under the Canada Pension Plan , is payable for that family member.

          ARTICLE 21 Cash Benefits for Tuberculosis

          When a person does not meet the requirements of the legislation of Italy for entitlement to cash benefits for tuberculosis solely on the basis of the periods of contributions credited under the legislation of Italy, periods creditable under the legislation of Canada shall, to the extent necessary, be taken into account to establish such entitlement. These cash benefits shall also be payable to a beneficiary who resides in Canada.

          PART IV Administrative and Miscellaneous Provisions

          ARTICLE 22 Administrative Arrangement

          • 1 The competent authorities of the Parties shall establish, by means of an administrative arrangement, the measures necessary for the application of this Agreement.
          • 2 The competent authorities and institutions of the Parties shall be indicated, and the liaison agencies of the Parties designated, in that arrangement.

          ARTICLE 23 Exchange 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 this Agreement;
            • (b) shall lend their good offices and furnish assistance to one another with regard to the determination or payment of any benefit under this Agreement; and
            • (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 insofar as these changes affect the application of the provisions of this Agreement.

            ARTICLE 24 Medical Examinations

            • 1 If a competent institution of a Party requests the competent institution of the other Party to conduct a medical examination of an applicant or beneficiary who resides in the territory of the latter Party, such examination shall be arranged or carried out by an institution of the latter Party.
            • 2 The costs related to a medical examination, whether it is performed by a specialist or a general practitioner, shall be borne by the institution which has requested the examination.
            • 3 The conditions under which the provisions of the preceding paragraphs will be applied shall be set out in an administrative arrangement concluded pursuant to Article 22.

            ARTICLE 25 Exemptions or Reductions of Taxes or Charges or Fees

            • 1 Any exemptions from or reduction of taxes, or charges or legal, consular or administrative fees, for which provision is made in the legislation of one 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 acts or 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 26 Language of Communication

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

            ARTICLE 27 Submitting Claims, Notices or Appeals

            • 1 Any claim, notice or appeal concerning the determination or payment of a benefit under the legislation of a Party which should, for the purposes of that legislation, have been presented within a prescribed period to a competent institution of that Party, but which is presented within the same period to a competent institution of the other Party, shall be treated as if it had been presented to the competent institution of the first Party.
            • 2 A claim for a benefit under the legislation of a Party shall be deemed to be a claim for the corresponding benefit under the legislation of the other Party, provided that the applicant requests in writing that it be considered a claim under the legislation of the other Party.
            • 3 In any case to which paragraph 1 or 2 applies, the institution to which the claim, notice or appeal has been submitted shall transmit it as soon as possible to the competent institution of the other Party.

            ARTICLE 28 Payment of Benefits

            • 1 The competent institution of a Party shall discharge its obligations under this Agreement in the currency of that Party.
            • 2 Benefits shall be paid to beneficiaries free from any deduction for administrative expenses that may be incurred in paying the benefits.

            ARTICLE 29 Resolution of Disputes

            • 1 The competent authorities of the Parties shall resolve, to the extent possible, any disputes which might 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 concerning disputes which have not been resolved by the competent authorities in accordance with paragraph 1.
            • 3 If a dispute cannot be resolved, it shall be submitted, at the request of either Party, to an arbitration tribunal consisting of one representative appointed by each of the Parties and by a third member chosen jointly by the two Parties, or, failing an agreement, by the President of the International Court of Justice.
            • 4 The decision of the arbitrators shall be final and binding.

            ARTICLE 30 Understandings with a Province of Canada

            The relevant authority of Italy and a province of Canada may conclude understandings concerning any social security matter within provincial jurisdiction in Canada insofar as those understandings are not inconsistent with the provisions of this Agreement.

            PART V Transitional and Final Provisions

            ARTICLE 31 Consideration of Previous Events and Periods and Transitional Provisions

            • 1 Any period prior to the date of entry into force of this Agreement which is creditable under the legislation of either Party shall be taken into account for the purpose of determining the right to a benefit under this Agreement.
            • 2 Subject to paragraph 4, 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 the Agreement.
            • 3 Subject to paragraph 2, a benefit, other than a lump sum payment, shall be paid under this Agreement in respect of events which occurred before the date of entry into force of the Agreement.
            • 4 Claims for benefits under consideration on the date of coming into force of this Agreement, and claims for such benefits received after that date where entitlement would exist prior to that date through the application of the Agreement on Social Security between Canada and Italy signed in Toronto on 17 November 1977, shall be determined according to that Agreement in regard to rights established up to the date of coming into force of this Agreement, and according to this Agreement in respect to rights arising from this Agreement.

            ARTICLE 32 Termination of the Agreement of 17 November 1977 and Recalculation of Benefits

            • 1 With the coming into force of this Agreement, the Agreement on Social Security between Canada and Italy, signed in Toronto on 17 November 1977, shall be terminated.

            (a) Benefits awarded through the application of the Agreement referred to in paragraph 1 may be recalculated by the competent institutions, either directly or on request by the beneficiary, taking into account the provisions of this Agreement.

            • (b) If a request for recalculation is submitted to a competent institution within 24 months of the date of coming into force of this Agreement, the recalculation shall have effect from that date, without the provisions of the legislation of a Party regarding the expiration or prescription of entitlement being applied to the individual.
            • (c) If a request for recalculation is submitted to a competent institution later than 24 months from the date of entry into force of this Agreement, the recalculation shall have effect from the date of submission of the request in respect of rights that are neither expired nor prescribed.
            • (d) In no case shall the amount of a benefit be reduced as a result of such recalculation.

            ARTICLE 33 Entry into Force and Termination

            • 1 This Agreement shall be ratified and shall enter into force on the first day of the fourth month following the month in which the instruments of ratification have been exchanged.
            • 2 This Agreement shall remain in force without any limitation on its duration. It may be denounced at any time by either Party giving 12 months’ notice in writing to the other Party.
            • 3 If this Agreement is terminated, any right acquired by a person in accordance with the provisions of this Agreement shall be maintained, and measures required for the settlement of any rights then in course of acquisition by virtue of its provisions shall be agreed upon by the Parties.

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

            Done in two copies at Rome, this 22nd day of May, 1995, in the English, French and Italian languages, the three texts being equally authoritative.

            For the Government of Canada

            For the Government of the Italian Republic