Apply for foreign disability pension
Agreements
Iceland has made agreements with a number of countries to ensure that people can move and work abroad without losing their rights.
Those who have lived or worked abroad for part of their working life can therefore have rights abroad in addition to their Icelandic pension, for example old-age and disability pension.
Different rules apply in the contracting countries and therefore a right in one country does not need to create a right in another country.
The provisions of EU Regulation No 883/2004, see Article 29 of the Agreement on the European Economic Area (EEA), apply when a person moves between EEA countries. The objective is to ensure a consistent and continuous application of the different legislation of the Member States in the field of social security, thus preventing the person moving his/her residence between EEA countries from losing his/her social security rights.
Example: A person who has earned a right to pension benefits does not lose them if he/she moves to another EEA country. The acquired right from each country is paid out once the pension age in the country in question is reached.
The Regulation contains harmonisation rules on non-discrimination, the allocation of residence periods, the recognition of rights and the payment of pension rights between countries.
EEA rules on social security do not mean that pension rights in individual Member States should be the same, but they are only harmonised by the harmonisation rules.
The EEA rules cover a person who is/has been subject to the legislation of a Member State and is an EEA citizen, and the family members of that person.
The EEA rules cover the following categories of social security:
Compensation for sickness and pregnancy and birth.
Disability benefits including benefits intended to maintain or increase the possibility of earning income.
Compensation for old age.
Compensation for survivors.
Compensation for work accidents and occupational diseases.
A grant for death.
Unemployment benefits.
Family benefits.
The EEA rules cover the following payments from the Social Insurance Administration:
Benefits and payments of pension insurance under the Social Security Act, including old-age pension, invalidity pension, age-related disability compensation, income insurance, disability allowance and child pension.
The EEA rules do not cover payments under the Social Assistance Act. The same applies to benefits and payments in other EEA countries that are considered social assistance, but not social security. In addition, child support is not covered by the rules.
The main principles of the EEA rules
EU Regulation No 883/2004 contains certain principles for the uniform and continuous application of the legislation of the Member States:
A citizen of one Member State is treated equally in another Member State to the same extent as a citizen of that State.
A person covered by EU Regulation 883/2004 is subject only to the legislation of one of the Member States at any given time.
The period of insurance or periods of employment from the country of previous residence shall be taken into account in so far as is necessary to obtain insurance rights in the country of transfer.
The Nordic agreement entered into force on 1 May 2014 (see Law ) and replaces the previous agreement.
The parties to the agreement are Iceland, Denmark, Finland (and Åland), Norway and Sweden. The Faroe Islands and Greenland are parties to the agreement from 1 May 2015 but were, for the time that passed from the agreement to the other countries, still parties to the earlier agreement.
The aim of the agreement is to facilitate transport between the Nordic countries and to ensure that those who do so have social security rights.
The agreement ensures that social security rules in the EEA Agreement also cover those who reside in the Nordic countries, but are not covered by the EEA rules.
Who are not covered by the EEA rules?
Those who are citizens of a country that does not belong to the EEA.
Those who live and/or work in the Faroe Islands, Greenland or Åland (not part of the EEA).
The main point of the new agreement with regard to the Social Insurance Administration is a provision that the countries should conclude a bilateral agreement on rehabilitation and how these matters should be handled.
The agreement also contains some specific rules, for example, regarding co-operation on rehabilitation, repatriation for sickness, unemployment insurance and calculation of family benefits.
The agreement has been concluded which provides for further details on its implementation. The agreement contains a brief description of the main benefits in the Nordic countries.
Other contracts
Iceland has concluded social security agreements with the following countries outside the EEA.
The contracts are different. Most of them only deal with whether you retain the right to collect pension rights in Iceland while working abroad.
The Agreement on Social Security with Austria entered into force on 1 February 1996. The Agreement extends the scope of the social security rules of the EEA Agreement to all persons who are or have been subject to the legislation of the states but who are not covered by the EEA rules. The Agreement is mainly of importance for third-country nationals and persons outside the labour market.
There is an agreement between Iceland and the United States regarding pension payments between the two countries, i.e. that pension rights are not lost due to the transfer between the two countries.
The agreement allows a person who has permanent residence in the United States to apply for old-age and disability pensions to Iceland through a federal institution in the United States. TR forwards applications to pension funds in which individuals have rights in Iceland.
The Social Insurance Administration, a federal insurance agency in the United States, sends applications for pensions to Iceland for individuals who have permanent residence in Iceland.
Pensioners who move to the United States maintain their pension payments.
Disability pensioners who move to the United States maintain basic pensions and income insurance.
Social assistance payments, such as home allowance and special maintenance allowance, are not paid between countries.
The tax return must be submitted annually and have the correct address.
A move to Registers Iceland must be notified.
The Agreement on Social Security between Iceland and Canada came into force on 1 October 1989. The main purpose of the agreement is to ensure social security for those who move between Canada and Iceland.
The agreement covers all those who are or have been subject to the legislation of the Contracting States, family members and survivors. The agreement includes provisions on nondiscrimination of individuals, payment of benefits abroad, provisions on which legislation to apply and to deport employees, the allocation of defined periods of rights and more. The agreement covers as regards Canada the Act on the Safety of the Elderly, the Canadian Pension Act and regulations according to it, but as regards Iceland the agreement covers the provisions of the Social Security Act on old-age and disability pensions and child pensions. This agreement therefore has solely meaning regarding pension insurance.
The Convention on Social Security with Luxembourg entered into force on 1 December 2004. The Agreement extends the scope of the social security rules of the EEA Agreement to those who are or have been subject to national legislation but are not covered by the EEA rules unless otherwise specified in the agreements. The Agreement is mainly of importance for third-country nationals and non-workers.
The EFTA Treaty, which went into effect in 2002, gives individuals in Switzerland largely the same rights as they enjoy in the EU countries on the basis of the EEA Agreement.
A new EFTA treaty was signed in Vaduz, Liechtenstein, on 21 June 2001 and is often referred to as the Vaduz Agreement. The treaty entered into force on 1 June 2002. It grants residents and businesses in Iceland the same rights in Switzerland as those enjoyed by EU members under bilateral agreements between Switzerland and the EU. The Swiss also acquire these rights in Iceland.
These rights are in many ways parallel to those in force within the EEA. In particular, Icelanders can use the European Health Insurance Card in Switzerland, require insurance or periods of employment from Iceland to be taken into account to the extent necessary to cancel or “delete” waiting periods in Switzerland when starting work in Switzerland or moving to Switzerland. In addition, you can receive payments of pension insurance from the country to Switzerland.
Service provider
Social Insurance Administration