The Social Security (Sweden) Order 1988

Made: 23rd March 1988

Coming into force: 1st May 1988

At the Court at Buckingham Palace, the 23rd day of March 1988

Present,

The Queen's Most Excellent Majesty in Council

Whereas at Stockholm on 29th June 1987 a Convention on Social Security between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Kingdom of Sweden and a Protocol supplementing the Convention were signed on behalf of those Governments:

And Whereas by Article 35 of the Convention it is provided that the Convention shall enter into force on the first day of the third month following the month in which the instruments of ratification are exchanged:

And Whereas by Article 5 of the Protocol it is provided that the Protocol shall form an integral part of the Convention:

And Whereas the Convention and the Protocol have been ratified by the said Governments and the instruments of ratification were exchanged on 26th February 1988 and accordingly the Convention and the Protocol enter into force on 1st May 1988:

And Whereas by section 143 of the Social Security Act 1975 and section 15 of the Child Benefit Act 1975 it is provided that Her Majesty may by Order in Council make provision for modifying or adapting the said Social Security Act and for modifying the provisions of Part I of the said Child Benefit Act and regulations made under it in their application to cases affected by agreements with other governments providing for reciprocity in matters specified in those sections:

Now, therefore, Her Majesty, in pursuance of the said section 143, and the said section 15, and of all other powers enabling Her in that behalf, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows:—

Citation and commencement

1

This Order may be cited as the Social Security (Sweden) Order 1988 and shall come into force on 1st May 1988.

Modification of the Social Security Act 1975

2

The Social Security Act 1975 shall be modified to such extent as may be required to give effect to the provisions contained in the Convention and the Protocol set in the Schedule to this Order so far as the same relate to England, Wales and Scotland.

Modification of the Child Benefit Act 1975

3

Part I of the Child Benefit Act 1975 and any regulations made under it shall be modified to such extent as may be required to give effect to the provisions contained in the Convention and the Protocol set out in the Schedule to this Order so far as the same relate to England, Wales and Scotland.

Revocation and Variation of Orders

4

• (1) The National Insurance and Industrial Injuries (Sweden) Order, 1957 is hereby revoked.

• (2) The reference to the said Order of 1957 shall be omitted in Schedule 1 to the Social Security (Reciprocal Agreements) Order 1976 , the Schedule to the Social Security (Reciprocal Agreements) Order 1979 and in Schedule 1 and 2 to the Social Security (Reciprocal Agreements) Order 1982 .

SCHEDULE — CONVENTION ON SOCIAL SECURITY BETWEEN THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE GOVERNMENT OF THE KINGDOM OF SWEDEN

The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Kingdom of Sweden;

Having established reciprocity in the field of social security by means of the Convention which was signed on their behalf at Stockholm on 9 June 1956;

Desiring to extend and modify the scope of that reciprocity and to take account of changes in their legislation;

Have agreed as follows:

PART I — general provisions

Article 1

• (1) For the purpose of this Convention:

• (a) “the United Kingdom” means the United Kingdom of Great Britain and Northern Ireland and “Sweden” means the Kingdom of Sweden;

• (b) “territory” means, in relation to the United Kingdom, England, Scotland, Wales, Northern Ireland and also the Isle of Man, the Island of Jersey and the Islands of Guernsey, Alderney, Herm and Jethou and, in relation to Sweden, the territory of Sweden;

• (c) “legislation” means the legislation specified in Article 2 of this Convention which is in force in the territory of one (or the other) State or in any part of that territory;

• (d) “competent authority” means, in relation to the territory of the United Kingdom, the Secretary of State for Social Services, the Department of Health and Social Services for Northern Ireland, the Isle of Man Department of Health and Social Security, the Social Security Committee of the States of Jersey or the States of Guernsey Insurance Authority as the case may require, and, in relation to Sweden, the Government or the authority nominated by the Government;

• (e) “insurance authority” means the authority or institution competent to decide entitlement to the benefit in question;

• (f) “competent institution” means the authority or institution from which the person concerned is entitled to receive benefit or would be entitled to receive benefit if he were resident in the territory of the State where that authority or institution is situated;

• (g) “insured” means, in relation to the territory of the United Kingdom, that contributions have been paid or are payable by or in respect of the person concerned, or have been credited to him or for the purposes of Articles 21 to 23 of this Convention, that the person is, or is treated as being, an employed person;

• (h) “contribution period” means a period in respect of which contributions appropriate to the benefit in question are payable, have been paid or treated as paid under the legislation of one or the other State;

• (i) “insurance period” means a contribution period, a period of employment or any other period recognised as a period of insurance or an equivalent period by the legislation under which it was completed, including any calendar year for which pension points have been credited under the Swedish social insurance scheme for the purpose of a supplementary pension on the basis of income from employment or other economic activity during the year in question or a portion thereof;

• (j) “equivalent period” means in relation to the territory of the United Kingdom a period for which contributions appropriate to the benefit in question have been credited under the legislation of that State;

• (k) “pension”, “allowance” or “benefit” mean a pension, allowance or benefit under the applicable legislation, including all the constituent parts thereof which are financed out of public funds as well as all increases and additional payments;

• (l) “old age pension” includes, in relation to the territory of the United Kingdom, a retirement pension under the legislation of that State and, in relation to Sweden, an old age pension in the form of a basic pension or a supplementary pension;

• (m) “benefit in respect of childbirth” means, in relation to the territory of the United Kingdom, maternity allowance under the legislation of that State and, in relation to Sweden, parental benefit;

• (n) “survivor’s benefit” means in relation to the territory of the United Kingdom, widow’s allowance, widowed mother’s allowance and widow’s pension under the legislation of that State;

• (o) “orphan’s benefit” means, in relation to the territory of the United Kingdom, guardian’s allowance and child’s special allowance under the legislation of that State and, in relation to Sweden, child’s pension under the legislation of Sweden;

• (p) “family allowance” includes, in relation to the territory of the United Kingdom, child benefit under the legislation of that State, and in relation to Sweden, general children’s allowance under the legislation of that State;

• (q) “ship or vessel” means, in relation to the territory of the United Kingdom, any ship or vessel, whose port of registry is a port in that territory or in the case of a hovercraft, which is registered in that territory, or any other ship or vessel of which the owner (or managing owner if there is more than one owner) or manager resides or has his principal place of business in that territory and, in relation to Sweden, any ship or vessel flying the Swedish flag;

• (r) “gainfully occupied” means being an employed or self-employed person;

• (s) “employed person” means a person who comes within the definition of an employed person or an employed earner or a person who is treated as such in the applicable legislation;

• (t) “employment” means employment as an employed person;

• (u) “self-employed person” means a person who comes within the definition of a self-employed earner or a person who is treated as such in the applicable legislation;

• (v) “social assistance” means, in relation to the territory of the United Kingdom, supple-mentary benefit under the legislation of that State, and, in relation to Sweden, social assistance provided for in Swedish laws.

• (2) Other words and expressions which are used in the Convention have the meanings respectively assigned to them in the legislation concerned.

• (3) For the purpose of applying those provisions of this Convention which apply to nationals of one or the other State “national” means, in relation to the United Kingdom, any British citizen, British Dependent Territories citizen, British Overseas citizen or British subject.

Article 2

Article 3

Article 4

PART II — provisions which determine the legislation applicable

Article 5

• (1) Subject to the following provisions of this Article and the provisions of Articles 6 to 9 of this Convention, where a person is gainfully occupied, his liability to be insured shall be determined under the legislation of the State in whose territory he is so occupied. Where a person is gainfully occupied in the territories of both States, he shall be liable to be insured in each territory in respect of his gainful occupation in that territory.

• (2) Where a person is not gainfully occupied, any liability to be insured shall be determined under the legislation of Sweden if he is resident there or under the legislation of the territory of the United Kingdom if he is ordinarily resident in that territory.

Article 6

Article 7

Article 8

Article 9

PART III — special provisions

Section 1 — special provisions relating to the application of the legislation of the territory of the united kingdom

Article 10

• (1) Subject to the provisions of paragraphs (4) and (5) of this Article, for the purpose of calculating entitlement to an old age pension under the legislation of the United Kingdom in accordance with Article 15 of this Convention, or of calculating entitlement to a United Kingdom widow’s benefit under Article 17, or of calculating entitlement under the legislation of the United Kingdom to any benefit specified in Articles 11 to 13 of this Convention, insurance periods completed under the legislation of Sweden before 6 April 1975 shall be treated as if they had been insurance periods completed under the legislation of the United Kingdom.

• (2) Subject to the provisions of paragraph (4) of this Article, for the purpose of calculating entitlement to an old age pension under the legislation of the United Kingdom in accordance with Article 15 of this Convention, or of calculating entitlement to a United Kingdom widow’s benefit under Article 17, or of calculating entitlement under the legislation of the United Kingdom to any benefit specified in Articles 11 to 13 of this Convention, insurance periods completed as a self-employed person under the legislation of Sweden after 5 April 1975 shall be treated as if they had been insurance periods completed as a self-employed person under the legislation of the United Kingdom.

• (3) Subject to the provisions of paragraph (7) of this Article, for the purpose of calculating an earnings-factor for entitlement to any benefit referred to in Articles 11 to 17 of this Convention and provided under the legislation specified in Article 2(1)(a)(i) and (ii) of this Convention, a person shall be treated for each week beginning in a relevant tax year commencing on or after 6 April 1975, the whole of which week is an insurance period completed as an employed person under the legislation of Sweden, as having paid a contribution as an employed earner on earnings equivalent to two-thirds of that year’s weekly upper earnings limit.

• (4) For the purpose of calculating the appropriate contribution factor to establish entitlement to any benefit referred to in Articles 11, 12 and 14 to 17 of this Convention and provided under the legislation specified in Article 2(1)(a)(iii) of this Convention, a person shall be treated:

• (a) for each week in an insurance period completed under the legislation of Sweden, being a week in the relevant quarter, as having paid contributions which derive a quarterly contribution factor of 0.077 for that quarter;

• (b) for each week in an insurance period completed under the legislation of Sweden, being a week in the relevant year, as having paid contributions which derive an annual contribution factor of 0.0193 for that year.

• (5) For the purpose of calculating entitlement to benefit in accordance with Articles 11 to 17 and Article 24 of this Convention under the legislation specified in Article 2(1)(a)(iv) of this Convention, insurance periods completed under the legislation of Sweden shall be treated as if they had been insurance periods completed under the legislation of Guernsey.

• (6) Subject to the provisions of paragraphs (8) and (9) of this Article, for the purpose of converting insurance periods completed under the legislation of the United Kingdom before 6 April 1975, each contribution period or equivalent period completed under the legislation of that State shall be treated as if it had been an insurance period completed under the legislation of Sweden.

• (7) For the purpose of converting to an insurance period any earnings factor achieved in any tax year commencing on or after 6 April 1975 under the legislation specified in Article 2(1)(a)(i) and (ii) of this Convention, the competent authority of the territory of the United Kingdom shall divide the earnings factor by that year’s lower earnings limit. The result shall be expressed as a whole number, any remaining fraction being ignored. The figure so calculated, subject to a maximum of the number of weeks during which the person was subject to that legislation in that year, shall be treated as representing the number of weeks in the insurance period completed under that legislation.

• (8) For the purpose of converting to an insurance period any contribution factor achieved under the legislation specified in Article 2(1)(a)(iii) of this Convention, the competent authority of the territory of the United Kingdom shall:

• (a) in the case of a quarterly contribution factor, multiply the factor achieved by a person in a quarter by thirteen; and

• (b) in the case of an annual contribution factor, multiply the factor achieved by a person in a year by fifty-two.

The result shall be expressed as a whole number, any remaining fraction being ignored. The figure so calculated, subject to a maximum of the number of weeks during which the person was subject to that legislation in a quarter or in a year, as the case may be, shall be treated as representing the number of weeks in the insurance period completed under that legislation.

• (9) For the purpose of converting insurance periods completed after 5 April 1975 under the legislation specified in Article 2(1)(a)(iv) of this Convention, each insurance period completed under that legislation shall be treated as if it had been an insurance period completed under the legislation of Sweden.

• (10) Where it is not possible to determine accurately the periods of time in which certain insurance periods were completed under the legislation of one State, such periods shall be treated as if they did not overlap with insurance periods completed under the legislation of the other State, but they shall be taken into account to the best advantage of the beneficiary.

• (11) For the purposes of determining entitlement to additional component payable under the legislation of the territory of the United Kingdom, no account shall be taken of any insurance period completed under the legislation of Sweden.

Section 2 — sickness benefit, benefit in respect of childbirth and maternity grant

Article 11

• (1) Where a person has, since his last arrival in the territory of one State, completed a contribution period under the legislation of that State, then for the purpose of any claim for sickness benefit made under the legislation of that State, any insurance period, completed under the legislation of the other State shall, subject to the provisions of Article 10 of this Convention, be treated as if it were an insurance period completed under the legislation of the former State.

• (2) Where a person has, since his last arrival in the territory of one State, completed an insurance period under the legislation of that State, then for benefit in respect of childbirth, any insurance period completed under the legislation of the other State shall, subject to the provisions of Article 10 of this Convention, be treated as if it were an insurance period completed under the legislation of the former State.

• (3) Where a person is entitled to sickness benefit under the legislation of one State he shall be entitled to receive that benefit during a temporary stay in the territory of the other State. This provision applies mutatis mutandis to maternity allowance under the legislation of the United Kingdom and parental benefit under the legislation of Sweden.

• (4) Where, but for the provisions of this paragraph, a person would be entitled to sickness benefit or benefit in respect of childbirth under the legislation of both States for the same period by virtue of paragraph (1) or (2), respectively, of this Article, that benefit shall be granted exclusively under the legislation of the State in whose territory he is present.

Article 12

Section 3 — unemployment benefit

Article 13

• (1) Subject to the provisions of paragraph (2) of this Article, where a person has, since his last arrival in the territory of one State, completed a contribution period under the legislation of that State, then for the purpose of a claim for unemployment benefit under the legislation of that State, any insurance period completed under the legislation of the other State shall, subject to the provisions of Article 10 of this Convention, be treated as if it were an insurance period completed under the legislation of the former State, provided that it would have been considered as an insurance period if it had been completed under the legislation of that State, and provided that: