**PART I--INTRODUCTION**

An agreement effective November 1, 1990, between the United States and
the Netherlands improves Social Security protection for people who
work or have worked in both countries.  It helps many people who,
without the agreement, would not be eligible for monthly retirement,
disability or survivors benefits under the Social Security system of
one or both countries.  It also helps people who would otherwise have
to pay Social Security taxes to both countries on the same earnings. 

The agreement covers Social Security taxes (including the U.S.
Medicare portion) and retirement, disability and survivors insurance
benefits.  It does not cover benefits under the U.S. Medicare program
or the Supplemental Security Income (SSI) program.

If you wish to apply for benefits under a program not covered by the
agreement, you may do so directly with the country that administers
the program.

This document covers highlights of the agreement and explains how you
may be affected if you have worked (or will work) in both the United
States and the Netherlands.  Please note that you or your employer
must take action in some situations.

THE AGREEMENT MAY HELP YOU AND YOUR FAMILY--
     
  o  WHILE YOU WORK--If your employment or self-employment is covered
by both the U.S. and Dutch Social Security systems, you (and your
employer, if you are employed) normally would have to pay Social
Security taxes to both countries for the same work.  The agreement
eliminates this double coverage, so that taxes are paid to only one
system.  (See Part II.)
 
  o  WHEN YOU APPLY FOR BENEFITS--You may have some Social Security
credits in both countries, but not enough U.S. credits to qualify for
regular U.S. Social Security benefits.  In this case, if you have a
minimum number of U.S. credits (see Part IV.A.1), we can count your
credits under the Dutch system so you may be able to get a partial
benefit from the U.S.  In addition, the agreement can help you qualify
for Dutch Social Security benefits even if you do not meet the normal
eligibility requirements (see Part IV.A.2).

**PART II--COVERAGE AND SOCIAL SECURITY TAXES** 
        
Before the agreement, employees, employers and self-employed persons
could, under certain circumstances, be required to pay Social Security
taxes to both the U.S. and the Netherlands for the same work.

Under the agreement, if you work as an employee in the U.S., you normally
will be covered by the U.S., and you and your employer will pay
Social Security taxes only to the U.S.  If you work as an employee in
the Netherlands, you normally will be covered by the Netherlands, and
you and your employer pay Social Security taxes only to the
Netherlands.

But, if your employer sends you from one country to work in the other
country for five years or less, you will remain covered by the first
country and be exempt from Social Security taxes in the other country.

If you are self-employed and reside in the U.S. or the Netherlands,
you generally will be covered and taxed only by the country where you
reside.

NOTE:  In addition to old-age, retirement, survivors and disability
benefits, Dutch Social Security taxes cover several other programs
including health and sickness insurance benefits, unemployment
benefits and family allowances.  As a result, workers exempted from
Dutch Social Security coverage by the agreement pay no Social Security
taxes for these programs and generally cannot receive benefits from
them.  If the agreement exempts you from Dutch coverage, you and your
employer may wish to arrange for alternative benefit protection.

The following table shows how you are covered and to which country you
and your employer must pay Social Security taxes.  To avoid also
paying taxes to the other country, your employer (or you, if you are
self-employed) should obtain a certificate of coverage from the
country where you will be covered (see Part III.).

As the table indicates, a U.S. worker assigned temporarily to the
Netherlands can be covered by U.S. Social Security only if he or she
works for a U.S employer.  A U.S. employer includes a corporation
organized under the laws of the United States or any State, a
partnership if at least two-thirds of the partners are U.S. residents,
an individual who is a resident of the U.S. or a trust if all the
trustees are U.S. residents.  The term also includes a foreign
affiliate of a U.S. employer if the U.S. employer has entered into an
agreement with the Internal Revenue Service under section 3121(l) of
the Internal Revenue Code to pay Social Security taxes for U.S.
citizens and residents employed by the affiliate.

    YOUR WORK STATUS                          COVERAGE AND TAXES

You are working in the Netherlands:

  For a U.S. employer who:

     o Sent you to work in the Netherlands       U.S.
       for five years or less

     o Sent you to work in the Netherlands       Netherlands 
       for more than five years

     o Hired you in the Netherlands              Netherlands
  

  For a non-U.S.employer                         Netherlands

  For the U.S. Government and you are a:

     o U.S. national                             U.S. (either Social
                                                 Security or federal
                                                 retirement program.)

     o Dutch national                            Netherlands
                              
You are working in the U.S.:

  For an employer in the Netherlands who:

     o Sent you to work in the U.S.              Netherlands
       for five years or less

     o Sent you to work in the U.S.              U.S. 
       for more than five years
  
     o Hired you in the U.S.                     U.S.

  For a non-Dutch employer                       U.S.

  For the Dutch Government and you are a:

     o Dutch national                            Netherlands          

     o U.S. national                             U.S.

You are self-employed and you:

  Reside in the U.S.                             U.S.

  Reside in the Netherlands                      Netherlands

If this table does not seem to describe your situation and you are:

     o Working in the U.S.                       Write to the U.S.
                                                 address in Part III.A
                                                 below for further
                                                 information.
                                                  
     o Working in the Netherlands                Write to the Dutch
                                                 address in Part III.A
                                                 below for further
                                                 information.

**PART III--CERTIFICATE OF COVERAGE**

A certificate of coverage issued by one country serves as proof of
exemption from Social Security taxes on the same earnings in the other
country.

III.A.  Certificate For Employees

To establish an exemption from compulsory coverage and taxes under the
Dutch system, your employer must request a certificate of coverage
from the U.S. at this address:

      Social Security Administration
      Office of International Programs
      P.O. Box 17741
      Baltimore, Maryland 21235-7741
      U.S.A.

The request may be sent by FAX, if preferred, to (410) 966-1861.
Please note this FAX number is only for requesting certificates of
coverage.  No special form is required to request a certificate, but, 
when writing for the certificate, the following information must be 
included so your status can be accurately determined:

 -full name of worker (including maiden name for married woman);
 -date and place of birth;
 -citizenship ;
 -country of worker's permanent residence;
 -U.S. Social Security number;
 -name (including maiden name of wife), relationship and date of birth 
  of family members accompanying the worker;
 -date of hire;
 -country of hire;
 -name and address of the employer in the U.S. and the Netherlands; and
 -date of transfer and anticipated date of return.

In addition, your employer must indicate if you remain an employee of
the U.S. company while working in the Netherlands or if you become an
employee of the U.S. company's affiliate in the Netherlands.  If you
become an employee of the Dutch affiliate, your employer must indicate
if the U.S. company has an agreement with the Internal Revenue Service
under section 3121(l) of the Internal Revenue Code to pay U.S. Social
Security taxes for all U.S. citizens and residents employed by the
affiliate and, if yes, the effective date of the agreement. 

To establish your exemption from coverage under the U.S. Social
Security system, your employer in the Netherlands must request a
certificate of coverage (form NL/USA 101) from the Netherlands at this
address:

     Sociale Verzekeringsbank
     (Social Insurance Bank)
     Department for International Secondment
     Van Heuven Goedhartlaan 1
     P. O. Box 357
     1180 AJ Amstelveen
     THE NETHERLANDS

The same information required for a certificate of coverage from the
U.S. is needed to get a certificate of coverage from the Netherlands
except that your Dutch Social Security number should be shown rather
than your U.S. Social Security number.

III.B.  Certificates For Self-Employed Persons

If you are self-employed and would normally have to pay Social
Security taxes to both the U.S. and Dutch systems, you can establish
your exemption from one of the taxes by writing to:

 o If you reside in the U.S., the Social Security Administration at    
   the address in Part III.A above.

 o If you reside in the Netherlands, the Sociale Verzekeringstaad at   
   the address in Part III.A above.

Be sure to provide the following information in your letter:

 -full name (including maiden name for married woman);
 -date and place of birth;
 -citizenship;
 -country of permanent residence;
 -U.S. and/or Dutch Social Security number;
 -name (including maiden name of wife), relationship and date of birth 
  of family members accompanying you;
 -nature of self-employment activity;
 -dates the activity was or will be performed; and
 -name and address of your trade or business in both countries.

III.C.  Effective Date Of Coverage Exemption

The certificate of coverage you receive from one country will show the
effective date of your exemption from paying Social Security taxes in
the other country.  Generally, this will be the beginning date of your
temporary assignment in the other country, or the beginning date of
your self-employment activity there.

Certificates of coverage issued by the Netherlands should be retained
by the employer in the U.S. in case of an audit by the Internal
Revenue Service (IRS). No copy should be sent to the IRS unless
specifically requested by the IRS.  However, a self-employed
individual must attach a photocopy of the certificate to his or her
tax return each year as proof of the U.S. exemption.

Copies of certificates of coverage issued by the U.S. will be provided
for both the employee and employer.  It will be their responsibility
to present the certificate to the Dutch authorities when requested to
do so.  To avoid any difficulties, your employer (or you, if you are
self-employed) should request a certificate as early as possible,
preferably before your work in the other country begins.

**PART IV--MONTHLY BENEFITS**

The following table shows the various types of Social Security
benefits payable under the U.S. and Dutch Social Security systems and
briefly describes the eligibility requirements for each.  If you do
not meet the requirements for regular benefits, the agreement may help
you to qualify (see Part IV.A below). This table is only a general
guide.  More specific information about U.S. benefits is contained in
booklets available at any U.S. Social Security office.  More detailed
information about the Dutch system may be obtained by writing to the
appropriate Dutch address in Part V of this document.

Under U.S. Social Security, you may earn up to four credits each year
depending on the amount of your covered earnings.  For example, in
1999, you get one credit for each $740 of your covered annual earnings
up to a maximum of four credits for the year.  Under the Dutch system,
credits are measured in months.  To simplify the information in the
table, requirements are shown in years of credits. 

Dutch benefits are paid under the following laws:

 -AOW (General Old-Age Act)
 -ANW (General Survivors' Benefits Act)
 -WAO (Disability Benefits Act)
 -WAZ (Self-employed Persons Disability Benefits Act)


RETIREMENT OR OLD-AGE BENEFITS

  **UNITED STATES**                         **THE NETHERLANDS**

Worker--Full benefit at age 65,     Worker--Full benefit payable at
or reduced benefit as early as      age 65 with 50 years of coverage 
age 62.  Required work credits      under the AOW; proportionally   
range from one and one-half to      reduced pension if fewer than 50
10 years (10 years if age 62        years.  Minimum of one year of AOW
in 1991 or later).                  coverage needed to qualify.
                          
DISABILITY BENEFITS
 
  ** UNITED STATES**                       **THE NETHERLANDS**

Worker--Under age 65 can get        Worker--Two types of benefits 
benefit if unable to do any         are payable.                          
substantial gainful work for at                                        
lease a year.  One and one-half     1. WAO-Person under age 65 can 
to 10 years credit required         get benefit if at least 
depending on age at date of         15 percent disabled for at least
onset.  Some recent credits also    52 weeks.  Must be working in  
needed unless worker is blind.      WAO covered employment at 
                                    disability onset.

                                    2. WAZ-Person under age 65 can  
                                    get benefit if at least 25 
                                    percent disabled for at least     
                                    52 weeks.  Must be working in 
                                    WAZ covered self-employment at 
                                    disability onset.

FAMILY BENEFITS TO DEPENDENTS OF RETIRED OR DISABLED PERSONS

   **UNITED STATES**                       **THE NETHERLANDS**

Spouse--Full benefit at age 65 or   Spouse--No provision.  However,
at any age if caring for entitled   beneficiaries who are married or  
child under 16 (or disabled before  share a household with a person   
age 22) of the worker.  Reduced     under age 65 may receive a benefit 
benefit as early as age 62 if not   supplement in addition to their
caring for a child.                 pension.
           
Divorced Spouse--Full benefit at    Divorced Spouse--No provision.     
age 62.  Reduced benefit as early  
as age 62.  Must have been married
to worker for at least 10 years.

Children--Up to age 18 (19 if in    Children--No provision.  
elementary or secondary school                                    
full time) or any age if disabled        
before age 22.                                                         


SURVIVOR BENEFITS

  **UNITED STATES**                       **THE NETHERLANDS**

Widow(er)--Full benefit at age 65   Widow(er) or living with partner--
or at any age if caring for an      Benefit payable to survivor who   
entitled child under age 16 (or     was married to the deceased or a
disabled before age 22) of the      partner (whether or the same or  
deceased.  Reduced benefit as       different sex) who shared a house-
early as age 60 (or age 50 if       hold with the deceased who is:    
disabled) if not caring for child              
child.  Benefits may be continued   o at least age 40, or
if remarriage occurs after age      o is caring for a child under  
60 (or age 50 if disabled).           age 18, or
                                    o is disabled.
                                                  
Divorced Widow(er)--Same as         Divorced Widow(er)--Benefit 
widow(er) if marriage lasted        payable if not remarried or 
at least 10 years.                  sharing a household with someone 
                                    and would have met the requirements for widow
                                    or widower benefit if the former
                                    spouse had died before the divorce
                                    was final.

Children--Same as children of       Children--Benefit payable if both
retired or disabled worker.         parents deceased and the child is
                                    under age 16, or under age 18 and
                                    disabled, or under age 21 and a          
                                    student.

                                    NOTE: If only one parent is deceased,
                                    a dependent child's supplement is
                                    paid to the person caring for a child
                                    who meets the above age requirements.
                                             
Lump-Sum Death Benefit--A           Lump-Sum Death Benefit--A one-time
one-time payment not to exceed      payment equal to one monthly benefit
$255 payable on the death of        and holiday allowance payable on            
an insured worker.                  the death of the worker.


IV.A.  HOW BENEFITS CAN BE PAID

If you have Social Security credits in both the U.S. and the
Netherlands, you may be eligible for benefits from one or both
countries.  If you meet all the basic requirements under one country's
system, you will get a regular benefit from that country.  If you do
not meet the basic requirements, the agreement may help you qualify
for a benefit as explained below.

IV.A.1.  Benefits from the U.S.

If you do not have enough work credits under the U.S. system to
qualify for regular benefits, you may be able to qualify for a partial
benefit from the U.S. based on both U.S. and Dutch credits.  However,
to be eligible to have your Dutch credits counted, you must have
earned at least six credits (generally one and one-half years of work) 
under the U.S. system.  If you already have enough credits under the 
U.S. system to qualify for a benefit, the U.S. cannot count your Dutch 
credits.

IV.A.2.  Benefits from the Netherlands

Under the agreement, people who meet certain conditions can get an
increased Dutch old-age pension, or use their U.S. Social Security
credits to help qualify for a Dutch disability or survivors pension.

1. Old-Age Pension--A person can qualify for a Dutch old-age pension
with as little as one year of Dutch coverage.  Therefore, work credits
under the U.S. system will not be counted when determining eligibility
for the old-age pension.

The agreement does permit certain people to qualify for a higher
benefit amount based on special credits for periods they resided in
the Netherlands before 1957.  To qualify for these special pre-1957
credits, you must have earned some Dutch Social Security coverage
after 1956 and meet certain eligibility requirements.

2. Disability and Survivors Pensions--Although there is no minimum
coverage requirement for Dutch disability or survivors pensions, the
worker must have been covered under the Dutch system at the time the
disability began or at the time of death for a benefit to be payable. 
Under the agreement, the worker may meet this requirement if he or she
has credit for a minimum of 12 months of Dutch coverage and had recent
U.S. coverage (or was eligible for a U.S. benefit) at the time the
disability began or at the time of death.

IV.B.  HOW CREDITS GET COUNTED

There is nothing you need to do to have your credits in one country
counted by the other country.  If we need to count your credits under
the Duch system to help you qualify for a U.S. benefit, we will obtain
a copy of your Dutch record directly from the Netherlands when you
apply for benefits.  If the Netherlands needs to count your U.S.
credits to help you qualify for a Dutch benefit, they will obtain a
copy of your U.S. record directly from the Social Security Administration
when you apply for the Dutch benefit. 

Although each country may count your credits in the other country, 
your credits actually are not transferred from one country to the 
other.  They remain on your record in the country where you earned
them and also can be used to qualify for benefits there.

IV.C.  COMPUTATION OF U.S. BENEFIT UNDER THE AGREEMENT

When a U.S. benefit becomes payable as a result of counting both U.S.
and Dutch Social Security credits, an initial benefit is determined
based on your U.S. earnings as if your entire career had been
completed under the U.S. system.  This initial benefit is then reduced
to reflect the fact that Dutch credits helped to make the benefit
payable.  The amount of the reduction will depend on the amount of
U.S. credits: the more U.S. credits, the smaller the reduction; and
the fewer U.S credits, the larger the reduction.

IV.D.  CLAIMS FOR BENEFITS

If you live in the United States and wish to apply for U.S. or Dutch
benefits: 

o visit or write any U.S. Social Security office, or

o phone our toll-free number, 1-800-772-1213, 7 a.m. to 7 p.m. 
  any business day.  
  
You can apply for Dutch benefits at any U.S. Social Security 
office by completing application form SSA-2490.

If you live in the Netherlands and wish to apply for benefits, 
contact:

o the U.S. Consulate General in Amsterdam to file for U.S. 
  benefits, or

o any Dutch Social Security office to file for Dutch benefits.

You can apply with one country and ask to have your application
considered as a claim for benefits from the other country. 
Information from your application will then be sent to the other
country.  Each country will process the claim under its own laws,
counting credits from the other country when appropriate, and notify
you of its decision.

If you have not applied for benefits before, you may need to provide
certain information and documents when you apply.  These include: the
worker's U.S. and Dutch Social Security numbers, proof of age for all
claimants, evidence of the worker's U.S. earnings in the past 24
months, and information about the worker's coverage under the Dutch
system.  You may wish to call the Social Security office before you go
there to see if any other information is needed. 

IV.E.  PAYMENT OF BENEFITS

Each country pays its own benefit.  U.S. payments are made by the U.S.
Department of Treasury each month and cover benefits for the preceding 
month.  The Netherlands also pays benefits each month for the preceding 
month.

IV.F.  ABSENCE FROM U.S. TERRITORY

Normally, persons who are not U.S. citizens may receive U.S. Social
Security benefits while outside the U.S. only if they meet certain
requirements.  Under the agreement, however, you may receive benefits
as long as you reside in the Netherlands regardless of your
nationality.  If you are not a U.S. or Dutch citizen and live in
another country, you may not be able to receive benefits.  The
restrictions on U.S. benefits are explained in the booklet,
"Social Security - Your Payments While You Are Outside the United 
States" (Publication  No. 05-10137).

IV.G.  APPEALS

If you disagree with the decision made on your claim for benefits
under the agreement, contact any U.S. or Dutch Social Security office. 
The people there can tell you what you need to do to appeal the
decision.

The Dutch Social Security authorities will review your appeal if it
affects your rights under the Dutch system, while U.S. Social Security


authorities will review your appeal if it affects your rights under
the U.S. system.  Since each country's decisions are made
independently of the other, a decision by one country on a particular
issue may not always conform with the decision made by the other
country on the same issue.

**PART V--FOR MORE INFORMATION**

To file a claim for U.S. or Dutch benefits under the agreement, follow
the instructions in Part IV.D.

To find out more about U.S. Social Security benefits, contact any U.S.
Social Security office.  If you live outside the U.S., write to:

        Social Security Administration
        OIO--Totalization
        P.O. Box 17049
        Baltimore, Maryland 21235-7049
        U.S.A.

For more information about the Netherlands' Social Security programs:

o  if you live in the Netherlands, visit any Social Security office
   in the Netherlands;

o  if you live outside the Netherlands and want information about
   retirement, survivors, or child's benefits, contact:

        Sociale Verzekeringsbank
        Postbus 576
        9700 AN Groningen
        THE NETHERLANDS;  or

o  if you live outside the Netherlands and want information about 
   disability benefits, contact:

        GAK NL BV
        Postbus 8300
        1005 CA Amsterdam
        THE NETHERLANDS

If you do not wish to file a claim for benefits but would like more
information about the agreement, write to:

        Social Security Administration
        Office of International Programs
        P.O. Box 17741
        Baltimore, Maryland 21235-7741
        U.S.A.

Please include your U.S. Social Security number whenever you write to
the U.S. Social Security Administration.


INTERNET

Did you know you can find more information about U.S. Social
Security agreements on the Internet?  The Social Security
Administration now makes information about the programs it
administers available through the Internet.  If you have Internet
access, you can obtain information about U.S. Social Security
agreements, as well as other useful information about Social
Security, by visiting Social Security online.  SSA's website
address is:

      www.ssa/gov


**PART VI--A SPECIAL MESSAGE TO PEOPLE WHO REQUEST A CERTIFICATE
           OF COVERAGE**

VI.A.  Privacy Act

The Privacy Act requires us to notify you that we are authorized
to collect this information by section 233 of the Social Security
Act.  While it is not mandatory for you to furnish the
information to the Social Security Administration (SSA), a
certificate of coverage cannot be issued unless a request has
been received.  The information is needed to enable SSA to
determine if work should be covered only under the U.S. Social
Security system in accordance with a totalization agreement. 
Without the certificate, work may be subject to foreign Social
Security coverage and taxation.

VI.B. Paperwork Reduction Act Notice

The Paperwork Reduction Act of 1995 requires us to notify you
that this information collection is in accordance with the
clearance requirements of section 3507 of the Paperwork Reduction
Act of 1995.  We may not conduct or sponsor, and you are not
required to respond to, a collection of information unless it
displays a valid OMB control number.  We estimate that it will
take you about 30 minutes to read the instructions, gather the
necessary facts and write down the information to request a 
certificate of coverage.