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Convention on Social Security between Canada and the Republic of Peru

Canada

and

the Republic of Peru,

hereinafter referred to as the “Parties”,

Resolved to co-operate in the field of social security,

Have decided to conclude a convention for this purpose, and
Have agreed as follows:

Part I - General Provisions

Article 1

Definitions

1. For the purposes of this Convention:

“benefit” means, any cash benefit that is provided for in the legislation of a Party and includes any supplement or increase applicable to that cash benefit;

“competent authority” means:

for Canada, the Minister or Ministers responsible for the application of the legislation of Canada specified in Article 2; and

for the Republic of Peru (“Peru”), the Ministry of Labour and Employment Promotion and the Ministry of Economy and Finance;

“competent institution” means:

for Canada, the competent authority; and

for Peru, the institution or agency responsible for the application of the legislation referred to in Article 2;

“creditable period” means:

for 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

for Peru, a period of contribution used to acquire the right to a benefit under the legislation of Peru and includes any period deemed as equivalent to a period of contribution;

“legislation” means the laws and regulations and provisions specified in Article 2;

“liaison agency” means the agency that is responsible for co-ordinating the Convention, exchanging information between the institutions of the Parties, and informing persons concerned of the rights and obligations stemming from this Convention.

2. A term that is not defined in this Article shall have the meaning assigned to it in the applicable legislation.

Article 2

Legislative Scope

1. This Convention 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 Peru:
  • legislation concerning old age, disability and survivor pensions under the National Pension System (SNP) and the Private Pension Fund System (SPP).

2. This Convention shall also apply to future laws, regulations and provisions that amend, supplement, consolidate, or supersede the legislation specified in paragraph 1.

3. This Convention shall also apply to future laws and regulations and provisions that extend the legislation of a Party to new categories of beneficiaries or to new benefits, unless the Party implementing the changes advises the other Party of its objection not later than three months following the entry into force of those laws and regulations.

Article 3

Personal Scope

1. The Parties shall apply this Convention to any person who is or who has been subject to the legislation of Canada or Peru, or both, and to any person who derives a right from that person under the legislation of either Party.

2. This Convention shall not affect benefits obtained by any person in accordance with othertreaties that are concluded between one Party and a third State.

Article 4

Equality of Treatment

All persons described in Article 3 shall be treated equally in regard to rights and obligations within the legislation of a Party.

Article 5

Export of Benefits

1. Unless otherwise provided in this Convention, a benefit payable under the legislation of a Party to any person described in Article 3, including a benefit paid by virtue of this Convention, shall not be reduced, modified, suspended, cancelled, or withheld by reason only of the fact that the person resides in or is present in the territory of the other Party or in the territory of a third State.

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

Part II - Provisions Concerning the Applicable Legislation

Article 6

General Rules 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 7

Special Provisions for Detached Workers

An employed person who is subject to the legislation of a Party and who is sent by their 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 as though that work was performed in its territory. The maximum period of a detachment is 36 months, unless the competent authorities of both Parties consent to an extension.

Article 8

Government Employment

1. Notwithstanding any provision of this Convention, 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, continue to apply.

2. A person employed by the government of a Party, who is not covered by the Vienna Convention on Diplomatic Relations or the Vienna Convention on Consular Relations, and who is sent 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.

Article 9

Exceptions

The Parties may, by mutual consent, modify the application of Articles 6 to 8 in the interest of any person or categories of persons.

Article 10

Coverage and Residence under the Legislation of Canada

1. For the purposes of calculating a benefit 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 Peru, 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 that person and who are not subject to the legislation of Peru by reason of employment or self-employment;
  • (b) If a person is subject to the legislation of Peru during any period of detachment in Canada, that period for that person, and for that person’s spouse or common-law partner and dependants who reside with him or her, shall be determined according to the provisions of Canadian legislation.

2. In the application of paragraph 1:

  • (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 Peru 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 Peru during a period of presence or residence in Canada only if that person makes contributions pursuant to that legislation during that period by reason of employment or self-employment.

Part III - Provisions Concerning Benefits

Chapter 1 - Totalizing

Article 11

Periods under the Legislation of Canada and Peru

1. If a person is not eligible for a benefit due to insufficient creditable periods under the legislation of a Party, that person’s eligibility shall be determined by totalizing these periods and those specified in paragraphs 2 through 4, provided that the periods do not overlap.

2.

  • (a) For the purposes of determining eligibility for a benefit under the Old Age Security Act, a creditable period under the legislation of Peru shall be considered as a period of residence in Canada;
  • (b) For the purposes of determining eligibility for a benefit under the Canada Pension Plan, three months in a calendar year which are creditable under the legislation of Peru shall be considered as a calendar year that is creditable under the Canada Pension Plan.

3. For the purposes of determining eligibility for an old age benefit under the legislation of Peru:

  • (a) A calendar year that is a creditable period under the Canada Pension Plan shall be considered as 12 months that are creditable under the legislation of Peru;
  • (b) A month that is a creditable period under the Old Age Security Act of Canada and that does not overlap with a creditable period under the Canada Pension Plan shall be considered as a month that is creditable under the legislation of Peru.

4. For the purposes of determining eligibility for a disability benefit, survivor’s benefit, or funeral costs under the legislation of Peru, a calendar year that is a creditable period under the Canada Pension Plan shall be considered as 12 months that are creditable under the legislation of Peru.

5. All creditable periods under the legislation of Peru, including those creditable periods completed prior to the date on which the contributor reaches the age of 18, shall be taken into account to determine an applicant's eligibility to a benefit under the legislation of Canada. However, a benefit shall not be paid unless the deceased or disabled person’s contributory period is at least equivalent to the minimum qualifying period required under the Canada Pension Plan to establish eligibility to that benefit for that person.

Article 12

Periods under the Regime of a Third State

If a person is not eligible for a benefit on the basis of the creditable periods under the legislation of the Parties, totalized as provided in Article 11, the eligibility of that person for that benefit shall be determined by totalizing these periods and periods completed under the regime of a third State with which both Parties are bound by social security instruments that provide for the totalizing of periods.

Article 13

Minimum Period to be Totalized

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, the right to a benefit does not exist under the legislation of that Party, that Party shall not be required to pay a benefit in respect of those periods. The other Party shall, however, take these creditable periods into consideration to determine whether a person is eligible for the benefit under the legislation of that other Party through the application of Chapter 1.

Chapter 2 - Benefits under the Legislation of Canada

Article 14

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 in accordance with the provisions of that Act governing the payment of a partial pension or allowance, based solely on the periods of residence in Canada that 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. Canada shall pay an Old Age Security pension to a person who is outside Canada only if that person’s periods of residence, when 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 15

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 benefit payable to that person in the following manner:

  • (a) The amount of the earnings-related portion of the benefit shall be determined in accordance with the provisions of the Canada Pension Plan, based solely on the pensionable earnings under that Plan;
  • (b) The amount of the flat-rate portion of the benefit shall be pro-rated by multiplying:
    the amount of the flat-rate portion of the benefit determined in accordance with the provisions of the Canada Pension Plan
    by
    the fraction representing the ratio of the periods of contribution to the Canada Pension Plan in relation to the minimum qualifying period required under that Plan to establish eligibility for that benefit. That fraction shall not exceed the value of one.

Chapter 3 - Benefits under the Legislation of Peru

Article 16

Calculating the Amount of Benefit Payable

1. If the conditions for eligibility for a benefit are met under the legislation of Peru without the creditable periods accumulated under the legislation of Canada, Peru shall determine the amount of that benefit based solely on the creditable periods accumulated under its legislation.

2. If eligibility for a benefit under the legislation of Peru can be established only through the application of the totalizing provisions of Chapter 1, Peru shall:

  • (a) calculate the theoretical amount of the benefit which would be paid if the totalized creditable periods had been accumulated under the legislation of Peru alone; and
  • (b) on the basis of the theoretical amount of the benefit calculated in accordance with sub-paragraph (a), determine the amount of benefit payable by applying the ratio of the length of the creditable periods accumulated under the legislation of Peru to the totalized creditable periods.

Part IV - Administrative and Miscellaneous Provisions

Article 17

Administrative Agreements

1. The Parties shall conclude Administrative Agreements that establish the measures necessary for the application of this Convention.

2. The Parties shall designate their competent institutions and liaison agencies in the Administrative Agreements.

Article 18

Exchange of Information and Mutual Assistance

1. The Parties shall:

  • (a) communicate to each other, to the extent permitted by the laws of each Party, any information necessary for the application of this Convention;
  • (b) provide assistance to one another for the purpose of determining eligibility for, and the amount of, any benefit under this Convention, or under the legislation, as if the matter involved the application of their own legislation;
  • (c) communicate to each other, as soon as possible, all information about the measures taken by them for the application of this Convention or about changes in their respective legislation, if these changes affect the application of this Convention.

2. The Parties shall provide the assistance referred to in paragraph 1(b) free of charge, unless otherwise specified in an Administrative Agreement concluded pursuant to Article 17 for the reimbursement of certain types of expenses.

3. Unless disclosure is required under the laws of a Party, any information about a person which is transmitted in accordance with this Convention from one Party to the other Party is confidential and shall be used only for purposes of implementing this Convention and the legislation to which this Convention applies. Information about a person obtained by the receiving Party shall not be disclosed subsequently to any other person, body or country unless the sending Party is notified and considers it advisable and the information is disclosed only for the same purpose for which it was originally disclosed.

Article 19

Exemption or Reduction of Dues, Fees or Charges

1. If one Party’s legislation provides that a person shall be exempt from paying all or part of an administrative fee for issuing a certificate or document required to apply its legislation, the same exemption shall apply to any fee for a certificate or document required to apply the legislation of the other Party. This exemption shall not apply if a medical report is required by the competent institution of a Party solely in support of a claim for a benefit under the legislation of that Party.

2. Documents of an official nature required for the application of this Convention shall be exempt from any authentication by diplomatic or consular authorities.

Article 20

Language of Communication

The Parties may communicate directly with one another in English, French, or Spanish.

Article 21

Submitting an Application, a Notice or an Appeal

1. The Parties shall treat applications, 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 liaison agency of that Party, but which are submitted within the same period to a competent authority or liaison agency of the other Party, as if they had been submitted to the competent authority or liaison agency of the first Party. The date of submission of applications, notices and appeals to the competent authority or liaison agency of the other Party shall be deemed to be the date of their submission to the competent authority or liaison agency of the first Party.

2. The date that an application for a benefit is submitted under the legislation of a Party shall be deemed to be the date of submission of an application for the corresponding benefit under the legislation of the other Party, provided that the applicant at the time of application provides information indicating that creditable periods have been completed under the legislation of the other Party. The preceding sentence shall not apply to an application submitted before the date of entry into force of this Convention or if the applicant requests that the payment of the benefit under the legislation of the other Party be delayed.

3. The Party to which an application, a notice or an appeal has been submitted shall transmit it without delay to the other Party.

Article 22

Payment of Benefits

A Party shall pay benefits under this Convention in a freely convertible currency directly to a beneficiary, or representative authorized under the laws of that Party, who resides outside its territory without any deduction for its administrative expenses.

Article 23

Resolution of Disputes

1. The Parties, through their liaison agencies or competent authorities, shall resolve all disputes of an administrative nature that arise in interpreting or applying this Convention in accordance with the spirit and fundamental principles of this Convention.

2. The Parties shall promptly settle any dispute that is not resolved in accordance with paragraph 1.

Part V - Special Provision

Article 24

Understandings with a Province of Canada

The relevant authority of Peru and a province of Canada may conclude understandings concerning any social security matter within provincial jurisdiction in Canada provided that those understandings are not inconsistent with the provisions of this Convention.

Part VI - Transitional and Final Provisions

Article 25

Transitional Provisions

1. The Parties shall take into account any creditable period completed before the date of entry into force of this Convention for the purposes of determining the right to a benefit and the amount of that benefit under this Convention.

2. This Convention does not confer the right, under any circumstances, to receive payment of a benefit for a period that precedes the date of entry into force of this Convention.

3. The Parties shall pay a benefit, other than a lump sum death benefit, in respect of events that precede the date of entry into force of this Convention.

4. For the purposes of Article 7, if a person’s detachment commences prior to the date of entry into force of this Convention, the period of that detachment shall be considered to begin on the date of entry into force of this Convention.

5. Subject to paragraphs 1 and 2, if a person submitted an application for a benefit under the legislation of a Party and that application was denied prior to the entry into force of this Convention, that person may submit a new application for that benefit and the relevant Party shall determine the person’s eligibility for that benefit according to the terms and conditions of this Convention and the legislation to which this Convention applies.

Article 26

Duration and Denunciation

1. This Convention shall remain in force indefinitely.

2. A Party may terminate this Convention at any time by providing the other Party with 12 months’ notice in writing through diplomatic channels.

3. If this Convention is terminated, any benefit obtained by a person or any concurrent period of detachment shall be maintained in accordance with the provisions of this Convention. This Convention shall continue to have effect in relation to all persons who, prior to its termination, applied for rights, and would have acquired those rights by virtue of this Convention if it had not been terminated.

Article 27

Entry into Force

1. 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 Convention. This Convention enters into force on the first day of the fourth month following the month in which the last note is received.

2. The Parties may, by mutual agreement, make amendments to this Convention in accordance with the entry into force provisions of paragraph 1.

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

Done in duplicate at Ottawa, this 10th day of April 2014, in the English, French and Spanish languages, each text being equally authentic.

 


FOR CANADA

Candice Bergen


FOR THE REPUBLIC OF PERU

Eda Rivas Franchini


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